A company is being investigated by the Securitites Exchange Commission (SEC). The chief executive officer (CFO) has been "cooking the books" for years to impress the CEO of the companies, showing bigger profits than they actually made. He provided investors and other government agencies with financials that reflect this discrepancy, which is very illegal, and most CFO's go to prision once investigators perform an extensive audit. He's not worried though, he's hidden the false transactions within line items that the SEC will never find. What type of bias is this? Authority bias Overconfidence bias Dunning-Krueger Effect I'm Indestructible Bias
A company is being investigated by the Securitites Exchange Commission (SEC). The chief executive officer (CFO) has been "cooking the books" for years to impress the CEO of the companies, showing bigger profits than they actually made. He provided investors and other government agencies with financials that reflect this discrepancy, which is very illegal, and most CFO's go to prision once investigators perform an extensive audit. He's not worried though, he's hidden the false transactions within line items that the SEC will never find. What type of bias is this? Authority bias Overconfidence bias Dunning-Krueger Effect I'm Indestructible Bias
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:A company is being investigated by the Securitites Exchange Commission (SEC). The
chief executive officer (CFO) has been "cooking the books" for years to impress the
CEO of the companies, showing bigger profits than they actually made. He provided
investors and other government agencies with financials that reflect this discrepancy,
which is very illegal, and most CFO's go to prision once investigators perform an
extensive audit. He's not worried though, he's hidden the false transactions within
line items that the SEC will never find.
What type of bias is this?
Authority bias
Overconfidence bias
Dunning-Krueger Effect
I'm Indestructible Bias
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