In an Efficient Market, the Cost of Equity for a Highly

In an efficient market, the cost of equity for a highly risky firm:

A) will be less than the market rate but higher than the risk-free rate.
B) must equal the market rate of return.
C) changes by 1 percent for every 1 percent change in the risk-free rate.
D) decreases as the beta of the firm's stock increases.
E) increases in direct relation to the stock's systematic risk.