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Exhibit 6-4

Question 3

Multiple Choice

Exhibit 6-4.The average time between trades for a high-frequency trading investment firm is 40 seconds.Assume the time between trades is exponentially distributed. Refer to Exhibit 6-4.What is the probability that the time between trades for a randomly selected trade and the one proceeding it is more than a minute?


A) 0.2231
B) 0.4869
C) 0.5134
D) 0.7769

Correct Answer:

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