easy · GMAT Quant

An algorithmic trading firm uses two strategies for trade execution: Strategy A, which executes 25% of all trades, and Strategy B, which executes 75% of all trades. Strategy A has a 'successful execution' rate of 4%, while Strategy B has a 'successful execution' rate of 12%.

If a trade is randomly audited, what is the probability that it was successfully executed?

  1. 8.0%
  2. 10.0%
  3. 1.0%
  4. 9.0%
  5. 16.0%

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