Summer Special 60% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: bestdeal

Free CMT Association CMT-Level-II Practice Exam with Questions & Answers | Set: 5

Questions 41

___________ is used for comparing the long-term performance of one system against another.

Options:
A.

Beta

B.

Sharpe Ratio

C.

Calmar ratio

D.

Treynor Ratio

CMT Association CMT-Level-II Premium Access
Questions 42

Which of the following statement states the correct percentage of the percentage gain on a loss of 50 percent?

Options:
A.

It requires an 80% gain to break even

B.

It requires a 100% gain to break even

C.

It requires a 90% gain to break even

D.

It requires a 70% gain to break even

Questions 43

All of the following are similar technical indicators, EXCEPT:

Options:
A.

Williams %R

B.

Stochastics

C.

Relative Strength Index

D.

The Sentix Index

Questions 44

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.

Questions 45

Beta measures:

Options:
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.

Questions 46

What is the measuring objective for a symmetrical triangle formation?

Options:
A.

A trendline from the top of the pattern parallel to the lower trendline

B.

The height of the base of the triangle

C.

Both A. and B. are valid techniques

D.

Neither A. nor B. is a valid technique

Questions 47

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.

Options:
A.

he is correct.

B.

he is incorrect.

C.

He is correct about the voluntary reporting aspect.

D.

He is correct about the independent and objective research aspect.

Questions 48

Which of the following are FALSE statements when describing the Chaikin Money Flow Index?

Options:
A.

Gaps will not be recorded, as the index only uses the day high, day low, and closing price.

B.

It suffers from the "drop off" effect, as it uses a simple moving average.

C.

It measures deviations of price within two standard deviations of the range.

D.

The index will rise above zero in an upward trend

Questions 49

Which of the following would provide the least help to a trader who is trying to determine where to place a stop order?

Options:
A.

ATR

B.

Parabolic SAR

C.

TRIN

D.

Pivot Point Technique

Questions 50

What are common mistakes made by impatient traders?

Options:
A.

Entering the market too soon

B.

Exiting the market too soon

C.

Abandoning well reasoned trading strategies due to adversity

D.

All of the above

Exam Code: CMT-Level-II
Certification Provider: CMT Association
Exam Name: CMT Level II Exam
Last Update: Jul 9, 2025
Questions: 262

CMT Association Related Exams

CMT Association Free Access
Get CMT Association Full Access

CMT Association Free Exams
CMT Association Free Exams
Prepare effectively for CMT Association certification exams with free study resources and practice tests from Examstrack.