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Free CMT Level II Exam Practice Questions

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Exam style questions across every CMT-Level-II domain

Last Update 3 days ago
Total Questions : 262

Start with our free CMT-Level-II practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real CMT Program exam. Each CMT-Level-II exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your CMT Association weak domains, see where you're losing marks, and build a focused study plan in minutes.

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Question # 11

Which of the following is true of moving average construction?

Options:

A.  

In the exponential moving average more weight is given to volume on higher volume days

B.  

The simple moving average is the geometric mean of previous prices

C.  

The linear weighted average addresses the problem of including only the price action covered by the length of the average itself

D.  

A shorter term moving average more closely tracks price action

Discussion 0
Question # 12

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

Options:

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

Discussion 0
Question # 13

Which of the following is true of the Efficient Frontier concept in modern portfolio theory?

Options:

A.  

It centers on the premise that systemic risks in the financial markets can be diversified away.

B.  

It is a 45 degree line plotting possible risk versus return

C.  

It is a plot of the highest possible returns obtainable over a series of risk levels

D.  

It is unrelated to the risk free rate

Discussion 0
Question # 14

Which of the following is typically a period of heavier volume?

Options:

A.  

First day of the week

B.  

Day before a holiday

C.  

Triple witching days

D.  

Summer days

Discussion 0
Question # 15

Staying the course in a trading strategy GENERALLY entails?

Options:

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

Discussion 0
Question # 16

A trend based trading system where signals occur when the current price reaches a new high or low:

Options:

A.  

Point and figure

B.  

Simple moving average

C.  

Swing breakout

D.  

N-day breakout

Discussion 0
Question # 17

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

Discussion 0
Question # 18

When using the RSI as an overbought/oversold indicator, a sell signal is generated when:

Options:

A.  

RSI declines below its lower reference line and then rallies above it.

B.  

RSI rises above its upper reference line and then crosses below it.

C.  

RSI crosses beneath the midpoint (50 level).

D.  

RSI crosses above the midpoint (50 level).

Discussion 0
Question # 19

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:

Options:

A.  

keeping the policy change within the firm.

B.  

keeping the policy change within the firm and existing clients.

C.  

updating disclosures when the policy change is implemented.

D.  

requiring Smith to obtain permission from each client prior to implementation of the new policy.

Discussion 0
Question # 20

Which of the following factors would increase the predictive power of an engulfing pattern?

Options:

A.  

The first day has a very long real body and the second day has a very short real body

B.  

The pattern appears after a consolidation pattern

C.  

There is heavy volume on the first day of the engulfing pattern

D.  

None of the above

Discussion 0

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