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CMT Association CMT Level II Sample Questions:
1. Which of the following asset classes as a leading indicator for the stock market?
A) Energy
B) Bonds
C) Precious metal
D) Bullion
2. On which of the following factors will the analyst choose the scale for the trend analysis?
A) It depends upon the type of analysis only
B) It depends upon the type of analysis or the period being explored
C) It depends upon the period being explored only
D) It depends upon the type of analysis and the period being explored
3. _______________ as a risk measure results in an estimation of a price move in either direction.
A) Standard deviation
B) Plurality index
C) Put/ call parity
D) Implied volatility
4. 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:
A) updating disclosures when the policy change is implemented.
B) keeping the policy change within the firm.
C) requiring Smith to obtain permission from each client prior to implementation of the new policy.
D) keeping the policy change within the firm and existing clients.
5. Which of the following is a true statement according to Elliott Wave Theory?
A) The rule of alternation states that up waves follow down waves
B) The number of waves follows the Pythagorean theorem
C) Bear markets do not fall below the top of the prior fourth wave
D) Ratios are used to define price objectives
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: D |




