The Average Time Between Trades for a High-Frequency Trading Investment

question 100

Multiple Choice

The average time between trades for a high-frequency trading investment firm is 40 seconds. Assume the time between trades is exponentially distributed. 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

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