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

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Viewing questions 51-60 out of questions
Questions # 51:

In a meeting with his firm's senior research analyst, George Powel, a proponent of the CFA Institute Research Objectivity Standards (ROS), stated that the key objective of the ROS is to create voluntary reporting of

research practices that promote independent and objective research to CFA Institute on an annual basis. With regard to his statements about the objectives of the ROS.

Options:

A.

he is correct.


B.

he is incorrect.


C.

He is correct about the voluntary reporting aspect.


D.

He is correct about the independent and objective research aspect.


Expert Solution
Questions # 52:

A trend based trading system where signals occur when the current high or low price exceeds the previous high or low price:

Options:

A.

Simple moving average


B.

Point and figure


C.

Swing breakout


D.

N-day breakou


Expert Solution
Questions # 53:

Can stock prices be normally distributed and are stock returns normally distributed?

Options:

A.

No, you can not have negative prices and every number is possible with any normal distribution. Yes, stock returns are normally distributed


B.

Yes, you can not afford negative prices and with any usual distribution, any number is possible. No, stock returns are normally distributed


C.

Yes, you can not afford negative prices and with any usual distribution, any number is possible. Yes, stock returns are normally distributed


D.

No, you can not have negative prices and every number is possible with any normal distribution. No, stock returns are normally distributed


Expert Solution
Questions # 54:

How would one improve a trading system utilizing band penetrations as trading signals which is giving too many unprofitable trade signals?

Options:

A.

Narrow the bands


B.

Widen the bands


C.

Utilize a shorter time horizon


D.

Utilize stop loss orders


Expert Solution
Questions # 55:

What position does the MTA take on plagiarism?

Options:

A.

Analysts can never copy other analysts work


B.

Other analysts work can be copied with permission in advance


C.

If the author of the original work is deceased, this work cannot be copied since permission cannot be obtained


D.

Research reports which are not direct copies but use substantially the same language as other analysts work would be permissible


Expert Solution
Questions # 56:

A trend based trading system where signals occur when the current high or low price exceeds the previous swing high or low price:

Options:

A.

Point and figure


B.

Simple moving average


C.

Swing breakout


D.

N-day breakout


Expert Solution
Questions # 57:

The MACD Histogram is a/an:

Options:

A.

trend-following indicator .


B.

momentum indicator.


C.

breadth indicator.


D.

oscillator


Expert Solution
Questions # 58:

In trend-based trading systems, what is the major determinant of trading activity (i.e., how often buy or sell signals are generated)?

Options:

A.

Smoothing technique used


B.

Distance between bands


C.

Selection of trend speed


D.

Use of a scaling factor


Expert Solution
Questions # 59:

Which of the following applies to the interpretation of point and figure charts in analyzing futures prices?

Options:

A.

Pattern analysis is more complex than for stocks


B.

Futures prices offer a greater variety of chart formations than stocks


C.

Only the most basic techniques are generally used such as a one box breakout


D.

Incorporating open interest data into a point and figure chart makes this type of chart more useful for futures


Expert Solution
Questions # 60:

Which of the following is most likely to occur when the overall market is deeply oversold and on the verge of reversing?

Options:

A.

Lagging groups fail to confirm new lows


B.

Leading groups fail to confirm new lows


C.

Relative strength of lagging groups begins to improve


D.

Leading groups make new lows and accelerate to the downside


Expert Solution
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