misappraisal
noun
                                                                                                                            
                                                            mis·ap·prais·al
                    
                                                                                                              
                                                                                                                                  ˌmis-ə-ˈprā-zəl  
                                                      
                                                          
            
            
               plural misappraisals            
        
    
                                
              
          
                                                      : the act or an instance of appraising something or someone wrongly : bad or incorrect appraisal                                      
              
                             
… the misappraisal of risk is one of the most important catalysts of any boom and bust cycle, and … it is complacency that allows the proper assessment of risk to go off course in the first place.— Axel Merk
Axel Merk
                         
                
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  Merriam-Webster unabridged




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