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CMT Level II Exam

Last Update 17 hours ago Total Questions : 262

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Question # 31

Which of the following is the calculation for price objective using the vertical count method? (Note: X is the multiplication symbol in this question)

A.

Price level of the lowest box (for up counts) + (number of boxes in the reversal columns X reversal size)

B.

Price level of the lowest box (for up counts) X number of boxes in the reversal columns X reversal size

C.

Price level of the lowest box (for up counts) of the base X number of columns of the base X reversal size

D.

Price level of the lowest box (for up counts) of the base + (number of columns of the base X reversal size)

Question # 32

When using the Bar/Candle method to portray volume what is the relationship defined between price and volume using this method?

A.

It has an indirect relationship between price and volume

B.

It has a direct relationship between price and volume

C.

It has no relationship between price and volume

D.

The price is dependent on the volume

Question # 33

Staying the course in a trading strategy GENERALLY entails?

A.

Meeting margin calls

B.

Not utilizing stops

C.

Not getting sidetracked by single, counter-trend news events

D.

Most valid buy signals in trading systems occur in the opposite direction of the prevailing trend

Question # 34

Beta measures:

A.

the relation between a portfolio's return and market return.

B.

the relation between a portfolio's volatility and market volatility.

C.

how much an individual stock's return is related to the market return.

D.

how much an individual stock's volatility is related to the market volatility.

Question # 35

What is the proper use of long-term charts versus daily price charts?

A.

Long-term charts are more useful for making trading decisions

B.

Daily price charts allow for a thorough trend analysis

C.

Long-term charts allow for a better assessment of the price trend

D.

Daily price charts allow for a better assessment of the price trend

Question # 36

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

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

Question # 37

Which of the following are true of the concepts of divergence and confirmation in technical analysis

A.

They are opposite concepts

B.

Confirmation has a valid technical interpretation but in the case of divergence, no valid conclusion can be drawn

C.

Confirmation indicates a likely change in trend since all technical indicators are in agreement

D.

Divergence indicates continuation in trend since different technical indicators do not agree

Question # 38

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

A.

The approximation will decrease

B.

The approximation will improve

C.

It has no effect on the approximation

D.

The approximation will not improve

Question # 39

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

A.

They are longer-term tops and bottom patterns, respectively

B.

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

C.

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

D.

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

Question # 40

_______uses the distribution of daily trading range to create a new indicator.

A.

TRIX

B.

Money Flow Index

C.

True Strength Index

D.

Intraday Intensity

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