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23 May, 14:50

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

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  1. 23 May, 15:05
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    Option C

    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
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