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NEW QUESTION: 1
Pindar Co is an airport operator that is quoted on the Stock Exchange. Recently, the board of directors agreed to change the company's depreciation policy concerning airport runways. In future, these assets will be written off over 100 years rather than 50 years. This change is solely designed to increase reported profits over the next 50 years and thereby create a better impression to investors of company performance.
What is the maximum level of market efficiency that the board of directors is assuming to be consistent with suchbehavior?
A. No form of efficiency
B. Weak-form of efficiency
C. Semi-strong form of efficiency
D. Strong-form of efficiency
Answer: B