Discounting [8]

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Bullet points include: Level: too high and current value will be understated, too low will be overstated May contribute to poor decision making, e.g. inappropriate purchase (or sale) of a company or a personal financial product May result in build up of reserves that are unnecessarily high or dangerously low Volatility: Too volatile: may lead to decision-making paralysis and impression of excessive risk Not volatile enough: may lead to complacency and misunderstanding of risks involved

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