Real CMT Association CMT-Level-II Exam Questions [Updated 2021]
CMT-Level-II Exam Dumps Pass with Updated 2021 CMT Level II Exam
NEW QUESTION 141
Which of the following is true for the use of the chi square test?
- A. Compares actual returns to expected returns
- B. Compares risk to expected returns
- C. Signals moving average crossovers
- D. Used as the main confirmation test in Dow Theory
Answer: A
NEW QUESTION 142
_____________ captures an increasing part of the profits as price moves in a favorable direction.
- A. Trailing stop
- B. Initial Stop
- C. Sell stop
- D. Standard deviation stop
Answer: A
NEW QUESTION 143
Which of the following is the reason behind choosing a logarithmic scale? Select the best possible answer.
- A. When long periods of trading activity are plotted
- B. When long or short periods of trading activity are plotted
- C. When intervals of trading activity are plotted over a limited span
- D. When short periods of trading activity are plotted
Answer: A
NEW QUESTION 144
If 300 shares traded at a certain price which of the following conclusions cant be drawn from this given situation?
- A. Traders could determine the price at which supply and demand were equalized
- B. Traders could determine the resistance zones
- C. Traders would record four bars at that price
- D. Traders could determine the support
Answer: C
NEW QUESTION 145
Steve Smith, CFA, is an equity research analyst for a long-term investment fund. His annual bonus is linked to annual trading profits. Under a new policy, the assessment period is switched to a monthly assessment period. According to the Code and Standards, best practices dictate:
- A. keeping the policy change within the firm and existing clients.
- B. requiring Smith to obtain permission from each client prior to implementation of the new policy.
- C. keeping the policy change within the firm.
- D. updating disclosures when the policy change is implemented.
Answer: D
NEW QUESTION 146
Standard deviation is:
- A. An inferential statistic which measures symmetry around the mean
- B. The covariance of two securities
- C. The square root of the variance
- D. A descriptive statistic which defines the central tendency
Answer: C
NEW QUESTION 147
Which of the following is a true statement according to Elliott Wave Theory?
- A. Ratios are used to define price objectives
- B. The number of waves follows the Pythagorean theorem
- C. The rule of alternation states that up waves follow down waves
- D. Bear markets do not fall below the top of the prior fourth wave
Answer: A
NEW QUESTION 148
According to the MTA Code of Ethics, what prohibitions MUST be adhered to after making a buy or sell recommendation?
- A. Allow adequate time for clients to act on recommendations before the analyst acts on the recommendation
- B. Insider trading activity is the subject of SEC regulations, therefore the MTA Code of Ethics is silent on this issue
- C. Analysts may effect trades for their own account even if their employer has not had time to act on their recommendation
- D. Analysts must give clients and their employer adequate time to trade, but the analyst's family members are under no such restriction
Answer: A
NEW QUESTION 149
Which of the following would NOT be true in designing a trading system utilizing bands?
- A. Close out shorts when prices reverse and go below the center of the band
- B. Close out longs when prices reverse and go below the center of the band
- C. Sell when price breaks below the lower band
- D. Buy when prices penetrate the upper band
Answer: A
NEW QUESTION 150
Stocks with superior fundamentals will normally decouple and start outperforming on an relative basis during:
- A. a rampant bull market.
- B. a market consolidation.
- C. a market correction (bear market).
- D. the last legs of an uptrend.
Answer: C
NEW QUESTION 151
A morning star pattern is typically:
- A. A continuation consisting of at least five candles
- B. A bottom reversal pattern consisting of three candles
- C. A very small pattern consisting of two candles that is infrequently seen
- D. A top reversal pattern consisting of three candles
Answer: B
NEW QUESTION 152
The stochastic oscillator was created utilizing which basic observation?
- A. Existing oscillators were limited to a range of 0 to 100
- B. Changes in volume precedes price movements
- C. As prices decline, the trading range tends to narrow
- D. As prices increase, prices tend to be closer to the upper end of the trading range
Answer: D
NEW QUESTION 153
_______________ as a risk measure results in an estimation of a price move in either direction.
- A. Put/ call parity
- B. Standard deviation
- C. Plurality index
- D. Implied volatility
Answer: D
NEW QUESTION 154
Which of the following is an INCORRECT definition of cycle terminology?
- A. Period - the time needed to finish one wave (cycle)
- B. Frequency - the number of cycles that repeat every 360°
- C. Phase - a measure of separation between the top and bottom of a wave (cycle)
- D. Amplitude - the height of the wave (cycle)
Answer: C
NEW QUESTION 155
Which of the following is the correct method to plot a percentage change in point-and-figure charts?
- A. The prices are converted into their arithmetic equivalent and plotted as an arithmetic number
- B. The approximated prices are plotted as a number
- C. The exact prices are plotted as a number
- D. The prices are converted into their logarithmic equivalent and plotted as a logarithmic number
Answer: D
NEW QUESTION 156
Which is the CORRECT interpretation of the candlestick hammer pattern?
- A. A hammer always has a black real body
- B. A hammer has no lower shadow
- C. A hammer need not be confirmed by other indicators
- D. A hammer comes after market rallies
Answer: C
NEW QUESTION 157
In regards to cycle analysis, translation is:
- A. Useful in checking where the trend direction is headed or if it is changing
- B. To the left when the peak is beyond the halfway point
- C. Distance between troughs
- D. Distance between peaks
Answer: A
NEW QUESTION 158
Intermarket analysis can be used for which investment decisions?
- A. Decisions among equity market sectors
- B. All of the above
- C. Decisions among mutual fund
- D. Decisions among asset classes
Answer: B
NEW QUESTION 159
What trading decision must a trader make based purely on trend line in the chart below?
- A. Close out long positions
- B. Hold long positions
- C. Close out short positions
- D. Trading decisions cannot be made by using trend lines.
Answer: B
NEW QUESTION 160
Which of the following is a true statement according to Elliott Wave Theory?
- A. The two types of simple corrections are zigzags and flats
- B. A trend divides into three waves in the direction of the next longer trend
- C. Corrections always take place in five wave patterns
- D. A complete bull market cycle is made up of eight waves, three waves up followed by five waves down
Answer: A
NEW QUESTION 161
......
CMT-Level-II Exam Dumps, CMT-Level-II Practice Test Questions: https://www.realvce.com/CMT-Level-II_free-dumps.html