Bounded rationality refers to the situation that practice contracts tend to include every contingent situation a corporation may face in its transactions.

True or false

Granting stock options to the company's CEO as part of his or her compensation package is an example of agency cost.

True

False

At the close of a certain trading day, your friend notices that the volume of the stock shares of a corporation was significantly higher than the average. Your friend then concludes that the company's stock price must be higher than the previous close price. Your friend's inference is correct.

True

False