Final answer:
The efficient market hypothesis states that trades can be executed quickly, easily, and inexpensively. However, its validity has been a topic of discussion in the field of finance.
Step-by-step explanation:
The efficient market hypothesis states that trades can be executed quickly, easily, and inexpensively. This hypothesis assumes that financial markets are efficient and that all relevant information is already reflected in the prices of securities. However, it is important to note that the efficient market hypothesis is a theory and has been the subject of debate among economists and researchers. For example, proponents of the efficient market hypothesis argue that it is impossible to consistently beat the market and earn abnormal profits because any relevant information is quickly incorporated into the prices of securities. On the other hand, critics of the efficient market hypothesis suggest that certain investment strategies and fundamental analysis can help identify undervalued or overvalued securities. In conclusion, the efficient market hypothesis implies that trades can be executed quickly, easily, and inexpensively, but its validity has been a topic of discussion in the field of finance.