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

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Questions # 21:

Which of the following is a component of the Code of Ethics?

CFA Institute members shall:

Options:

use particular care in determining applicable fiduciary duty.

use reasonable care and exercise independent professional judgment.

maintain and improve the competence of other investment professionals.

practice and encourage others to practice in a professional and an ethical manner.

Expert Solution

Questions # 22:

Which of the following is NOT true of the three mountains and three rivers chart patterns?

Options:

They are longer-term tops and bottom patterns, respectively

The three mountains pattern is also known as a triple top or Buddha top

The three rivers patterns is also known as a triple bottom or inverted Buddha bottom

The color of the real bodies is of utmost importance to its significance

Expert Solution

Questions # 23:

Which of the following is a CORRECT interpretation of the shooting star pattern?

Options:

It is even more bearish than the gravestone doji candle

Shooting stars in charts, as in life, are omens of good fortune

The color of the real body is of utmost importance to its significance

It is a bearish reversal pattern

Expert Solution

Questions # 24:

What is the specific name given to the normal distribution for having special characteristics?

Options:

Center limit theorem

Histogram

Central limit theorem

All of the above statements

Expert Solution

Questions # 25:

Which of the following is a true statement according to Elliott Wave Theory?

Options:

Triangles are usually second waves preceding a longer third wave

Waves can be expanded into longer waves and subdivided into shorter waves

In the stock market, wave 5 is the most common to extend

The Pythagorean theorem is the mathematical basis for Elliott Wave Theory

Expert Solution

Questions # 26:

Which of the following describes the McClellan Oscillator?

Options:

On days when prices close higher, it is assumed that all volume is represented by sellers

It is a breadth momentum oscillator

It is the sum of two exponential moving averages

It is used for longer-range trading compared to the McClellan Summation Index which is more useful for short term trading

Expert Solution

Questions # 27:

Stocks with superior fundamentals will normally decouple and start outperforming on an relative basis during:

Options:

a rampant bull market.

a market consolidation.

the last legs of an uptrend.

a market correction (bear market).

Expert Solution

Questions # 28:

A security has just broken out of its trading range to the upside. Over the course of the next 2 days, it rises an additional 5% from the point of the breakout. It then returns to its prior resistance line, before continuing the uptrenD. What term best describes this phenomenon?

Options:

Failure

Shortfall

Throwback

Premature Breakout

Expert Solution

Questions # 29:

Interpret price action in the chart below, combined with takeaways from the SPX New High-New Low index:

Options:

Confirmation between price action and indicator; the ongoing pullback can be bought.

Divergence between price action and indicator; suggests exiting of long positions.

Divergence between price action and indicator; can initiate shorts at current levels.

Can initiate long positions at current price level; breadth bottomed out at the same level as the pullback in October 2014.

Expert Solution

Questions # 30:

Identify the following assumption under the correlation coefficient:

Options:

Linearity

Normality

Outliers and homoscedasticity

All of the above

Expert Solution

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