CMT Association CMT-Level-II Exam Questions Free Practice Test

Viewing page 2 out of 8 pages

Viewing questions 11-20 out of questions

Questions # 11:

Which of the following is a FALSE statement about MACD?

Options:

The signal line is also a moving average

It is most useful in a trending market

The calculation does not use any simple moving averages

If MACD has had a positive value for more than 12 periods, this is predictive of a reversal.

Expert Solution

Questions # 12:

What is the position of the MTA Code of Ethics as it pertains to trading on inside information?

Options:

Under no circumstances is insider trading allowed

The Code of Ethics takes no position on insider trading

Insider trading which violates the laws/regulations of any governmental or regulatory agency is prohibited

Inside information may be disseminated but not acted upon

Expert Solution

Questions # 13:

An analyst has several groups of clients who are categorized according to their specific needs. Compared to research reports distributed to all of the clients, reports for a specific group:

Options:

will definitely include more basic facts.

may generally exclude more basic facts.

cannot be selectively distributed.

will not be allowed because it violates the Standard III(B), Fair Dealing.

Expert Solution

Questions # 14:

Which of the following statement is not true about the Diamond Top with regards to pattern analysis?

Options:

It is a profitable pattern

It consists of a combination of a broadening pattern and a symmetrical triangle

It occurs at the top of a very sharp upward rise in prices

It is not rare at price bottoms

Expert Solution

Questions # 15:

Which of the following is a CORRECT interpretation of open interest?

Options:

Rising open interest in an uptrend is bearish

Declining open interest in an uptrend is bearish

Rising open interest in a downtrend is bullish

Declining open interest in a downtrend is bearish

Expert Solution

Questions # 16:

When using the Bar/Candle method to portray volume what is the relationship defined between price and volume using this method?

Options:

It has an indirect relationship between price and volume

It has a direct relationship between price and volume

It has no relationship between price and volume

The price is dependent on the volume

Expert Solution

Questions # 17:

Which of the following is not a method used by Technical analysts to determine trading systems?

Options:

Pattern recognition,

Trend following

Non-exogenous signal systems

Countertrend

Expert Solution

Questions # 18:

Which of the following is NOT true of the belt hold candle?

Options:

The pattern consists of a single candle

The bearish belt-hold is a long black candle that opens on the high and moves lower through the trading session

A short belt-hold line has more significance than a long belt-hold line

The term belt-hold refers to a sumo wrestling maneuver where a wrestler pushes his opponent while holding onto his belt

Expert Solution

Questions # 19:

The bias under which, when an event has not occurred recently, the event is perceived as having zero or negligible probability of occurring in future, is categorized as:

Options:

Saliency bias

Framing bias

Sunk-cost bias

Anchoring bias

Expert Solution

Questions # 20:

Which of the following is true of the Efficient Frontier concept in modern portfolio theory?

Options:

It centers on the premise that systemic risks in the financial markets can be diversified away.

It is a 45 degree line plotting possible risk versus return

It is a plot of the highest possible returns obtainable over a series of risk levels

It is unrelated to the risk free rate

Expert Solution

Viewing page 2 out of 8 pages

Viewing questions 11-20 out of questions

Pass the CMT Association CMT Program CMT-Level-II Questions and answers with CertsForce