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

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