Which one of the following statements is correct concerning market efficiency?

A) Real asset markets are more efficient than financial markets.
B) If a market is efficient, arbitrage opportunities should be common.
C) In an efficient market, some market participants will have an advantage over others.
D) A firm will generally receive a fair price when it sells shares of stock.
E) New information will gradually be reflected in a stock's price to avoid any sudden change in the price of the stock.

Market efficiency implies that all relevant information is reflected in the market price. Therefore, a firm selling its shares in an efficient market should receive a fair price for those shares. Option A is incorrect because efficiency does not depend on the type of market. Option B is incorrect because if arbitrage opportunities are common, then the market is not efficient. Option C is incorrect because efficiency means that all participants have equal access to information, making it difficult for any one participant to have an advantage. Option E is incorrect because an efficient market quickly incorporates new information into the stock price, not gradually.