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CMT Association CMT Level II Sample Questions:
1. 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.
A) He is correct about the independent and objective research aspect.
B) He is correct about the voluntary reporting aspect.
C) he is correct.
D) he is incorrect.
2. Which of the following are valid point and figure chart trading tactics?
A) Stop losses should be placed below the last column of Os in an uptrend
B) All of the ab
C) Simple trade signals can be used for new commitments whereas complex signals are needed for liquidation purposes
D) Long positions are closed when they fall below the trend line and short positions are closed when they rise above the trend line
3. Which of the following is a general rule for trading futures?
A) Total amount risked on any single trade should not exceed 5% of equity
B) Due to the fact that markets only trend 30% of the time, 100% of capital should be invested at all times
C) At least 50% of total equity should be dedicated to the market group with the strongest trend
D) 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
4. Which of the following is the reason behind choosing a logarithmic scale? Select the best possible answer.
A) When short 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 long periods of trading activity are plotted
5. Most of these indicators measure what uninformed investors are doing.
A) Flow of Funds indicators
B) Cycle indicators
C) Sentiment indicators
D) Breadth indicators
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: C |






