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  • Importance Of Positively Correct Expectation
    In business, do we maximize profit or our business market value?

    Well, it turns out both are the same. What we mean by maximizing our profit is that we maximize the amount of profit the business will generate in the future discounted by the interest rate.

    And guess what, that's the value of our business.

    The catch is we don’t know how much profit the business will generate in the future. So the value of our business depends on the expectation of such profit.

    The i...
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