Question

If the Chief Financial Officer of a corporation lies on the 10-K to increase cash bonuses for managers, this is an example of: a. Market efficiency b. Opportunism c. Bounded Rationality d. Random Walk

Answer 1

Option C

Step-by-step explanation:

Bounded rationality explains that someone is limited to something before making a particular decision. The effectiveness of a decision is bounded by the limited options or criteria.

In this case, the chief financial officer is bounded by the 10-k to increase cash bonuses for managers. without the 10-k he cant increase the cash bonuses for managers, he his bounded by that clause.

The best answer is Option C