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

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Viewing questions 71-80 out of questions
Questions # 71:

If we increase the sample size what effect does it have on the approximation/outcome of the statistical tests?

Options:

A.

The approximation will decrease


B.

The approximation will improve


C.

It has no effect on the approximation


D.

The approximation will not improve


Expert Solution
Questions # 72:

According to Kirkpatrick and Dahlquist, during emotional times, flow of funds signals:

Options:

A.

Appear to work poorly because price seems to divorce itself from economics.


B.

Appear to work exceptionally well because of the market's flight to safety.


C.

Function no differently than at any other time in the market cycle because of shortcomings in the measurement procedures.


D.

Suggests the duration of the next downleg in the market cycle


Expert Solution
Questions # 73:

The _______________ tracks the degree of mass participation in rallies and decline.

Options:

A.

MACD line


B.

RSI


C.

Relative strength


D.

Advance/Decline line


Expert Solution
Questions # 74:

Which of the following is a general rule for trading futures?

Options:

A.

Due to the fact that markets only trend 30% of the time, 100% of capital should be invested at all times


B.

The majority of capital should be committed to the strongest market since it is rare that more than two or more markets will experience a major move simultaneously


C.

Total amount risked on any single trade should not exceed 5% of equity


D.

At least 50% of total equity should be dedicated to the market group with the strongest trend


Expert Solution
Questions # 75:

Which of the following is the MOST important thing to keep in mind in attempting to find a perfect indicator?

Options:

A.

Indicators do not take into account trading costs


B.

Indicators optimized for the past often do not work in the present


C.

Indicators are frequently so complex to create as to be of little use in making trading decision


D.

Indicators usually give conflicting trading advice


Expert Solution
Questions # 76:

Which of the following is NOT a basic principle of cycles?

Options:

A.

Summation


B.

Synchronicity


C.

Harmonicity


D.

Alternation


Expert Solution
Questions # 77:

A trend-based trading system where the trend is the weighting of the recent closing prices by a smoothing constant:

Options:

A.

Point and figure


B.

Simple moving average


C.

Exponential smoothing


D.

N-day break


Expert Solution
Questions # 78:

Which of the following BEST describes the rule of alternation?

Options:

A.

Downtrends follow uptrends


B.

Complex patterns follow simple patterns


C.

Price follows volume


D.

Prices alternate in Fibonacci sequences


Expert Solution
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