Latest [Dec 19, 2021] CMT-Level-II Exam with Accurate CMT Level II Exam PDF Questions
Take a Leap Forward in Your Career by Earning CMT Association 264 Questions
NEW QUESTION 106
The Sharpe Ratio is defined as?
- A. (expected return minus the risk free interest rate) divided by the standard deviation of returns
- B. (expected return plus the risk free interest rate) divided by the standard deviation of returns
- C. (expected return divided by the risk free interest rate) divided by the standard deviation of returns
- D. (expected return times the risk free interest rate) divided by the standard deviation of returns
Answer: A
NEW QUESTION 107
The Efficient Market Hypothesis assumes that:
I. Most investors will act rationally
II. Most investors will act irrationally
III. Prices typically reflect all available information
IV. Prices typically do not reflect all available information
- A. I & III
- B. II & III
- C. II & IV
- D. I & IV
Answer: A
NEW QUESTION 108
When a market exceeds the high of the previous 4 weeks, cycle logic indicates that which of the following cycles has bottomed and turned up?
- A. Seasonal
- B. Intermediate-term
- C. Long-term
- D. Short-term
Answer: C
NEW QUESTION 109
Which of the following is NOT continuation pattern?
- A. Separating lines
- B. Tweezers
- C. Rising three methods
- D. Windows
Answer: B
NEW QUESTION 110
________ is calculated by finding the probability of loss of the current market positions based on past market movements.
- A. Value at Risk
- B. Treynor ratio
- C. Potential Risk
- D. Hindenburg Omen
Answer: A
NEW QUESTION 111
Which of the following figures can not be plotted on a point and figure chart when we have to plot months and years together? Choose the best possible answer.
- A. The year is displayed at the bottom of the column and the month is not plotted
- B. The month is displayed at the bottom of the column and the year is not plotted
- C. The year is displayed at the bottom of the column and the number of the month is plotted instead of the X or O
- D. The month is displayed at the bottom of the column and the number of the year is plotted instead of the X or O
Answer: C
NEW QUESTION 112
Which of the following is NOT a momentum indicator:
- A. Difference between price and moving average
- B. Relative strength
- C. Trident index
- D. Difference between two moving averages
Answer: C
NEW QUESTION 113
Which of the following scale is used to plot data for investment and trading?
- A. The arithmetic scale is preferred
- B. A logarithmic or a linear scale is preferred
- C. A linear scale is preferred
- D. A logarithmic scale is preferred
Answer: A
NEW QUESTION 114
Which of the following describes the McClellan Oscillator?
- A. It is used for longer-range trading compared to the McClellan Summation Index which is more useful for short term trading
- B. It is the sum of two exponential moving averages
- C. It is a breadth momentum oscillator
- D. On days when prices close higher, it is assumed that all volume is represented by sellers
Answer: C
NEW QUESTION 115
Which of the following is a true statement according to Elliott Wave Theory?
- A. Bear markets do not fall below the top of the prior fourth wave
- B. The number of waves follows the Pythagorean theorem
- C. The rule of alternation states that up waves follow down waves
- D. Ratios are used to define price objectives
Answer: D
NEW QUESTION 116
According to Charles Dow, what has been the main downfall of Wall Street investors?
- A. Failure to abide by classic trading rules
- B. Failure to stay the course
- C. Pride of opinion
- D. Independent thinking
Answer: C
NEW QUESTION 117
Which of the following are the three basic tenets of Elliott Wave Theory, in the CORRECT order of importance?
- A. Waves, alternation and reversals
- B. Price, pattern and volume
- C. Price, momentum and volume
- D. Pattern, ratio and time
Answer: D
NEW QUESTION 118
Which of the following is an important point in interpreting chart patterns?
- A. Longer-term patterns are more valid than shorter patterns
- B. Chart pattern interpretation is based solely on the current pattern and ignores the prior trend
- C. Chart patterns should be interpreted separately from trendline analysis
- D. Topping patterns usually have smaller price ranges and take longer to build
Answer: A
NEW QUESTION 119
Technicians refer to the speed of price movement as:
- A. Ratio of two prices
- B. Slope or momentum
- C. Trend
- D. Volume
Answer: B
NEW QUESTION 120
Which of the following is NOT true of the three mountains and three rivers chart patterns?
- A. The three mountains pattern is also known as a triple top or Buddha top
- B. The color of the real bodies is of utmost importance to its significance
- C. They are longer-term tops and bottom patterns, respectively
- D. The three rivers patterns is also known as a triple bottom or inverted Buddha bottom
Answer: B
NEW QUESTION 121
Which of the following method is used to plot sequential trading data? Choose the best possible answer.
- A. Bar charts
- B. Line charts
- C. Japanese candlestick charts
- D. Point-and-figure charts
Answer: D
NEW QUESTION 122
A breakout:
- A. Needs to be confirmed by other indicators
- B. Has no significance to a trader of investor
- C. Is a minor pattern which is rarely seen and has no real significance on either the near or long term
- D. Occurs when price passes through specific levels
Answer: D
NEW QUESTION 123
Which of the following factors would increase the predictive power of the evening star pattern?
- A. If there is no overlap among the real bodies of the candles in the pattern
- B. If the last candle closes deeply into the body of the first candle
- C. All of the above
- D. If there is light volume on the first candle of the pattern and heavy volume on the last candle of the pattern
Answer: C
NEW QUESTION 124
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