The concept of market efficiency embodies the idea that

Select one:

a.

investors want to be compensated with higher returns for all the unsystematic risk they bear, and expect prices to adjust in an instantaneous and unbiased way

b.

all investors are fully informed about the potential returns for a given firm, and therefore the share price is a fair representation

c.

share prices respond to new information in a way that is both unbiased and instantaneous

d.

because holders of debt do not share in the high returns in good economic periods, they require a higher rate of return relative to the risk they bear