CMT-Level-II

__________ is a perception bias that arises when you are attempting to take a guess at something about which you have limited information.A . SaliencyB . FramingC . Sunk-costD . AnchoringView AnswerAnswer: D

Standard deviation is:A . A descriptive statistic which defines the central tendencyB . The square root of the varianceC . The covariance of two securitiesD . An inferential statistic which measures symmetry around the meanView AnswerAnswer: B

Which of the following best helps quantify the risk of a trading system?A . Maximum Cumulative DrawdownB . Maximum Favorable ExcursionsC . Longest Flat TimeD . Length of Average Winning TradeView AnswerAnswer: A

Which of the following is a CORRECT interpretation of open interest?A . Rising open interest in an uptrend is bearishB . Declining open interest in an uptrend is bearishC . Rising open interest in a downtrend is bullishD . Declining open interest in a downtrend is bearishView AnswerAnswer: B

Which of the following pieces of information is NOT contained in the CFTC's Commitment of Traders report?A . Positions of hedgers and speculatorsB . Historical open interest of each contractC . Current open interest of each contractD . Reportable and non-reportable positionsView AnswerAnswer: B

Which of the following is not a rule used in the statistical analysis done using a normal distribution?A . Two-thirds of the outcomes will lie above within one standard deviation of the meanB . 95% of the outcomes will lie within two standard deviations from the meanC . Two-thirds of...

Which of the following is not a disadvantage of the patterns that are formed by Broadening formations?A . They are hard to make the most of the profitB . They are often difficult to identifyC . They are relatively common in occurrenceD . The breakout lines are moving permanently away...

What method could one utilize to analyze the long-term trends of futures prices, despite the fact that each contract is ONLY traded for several months?A . Candlestick chartsB . Point and figure chartsC . Equivolume chartsD . Continuation chartsView AnswerAnswer: D

Which is the CORRECT interpretation of the candlestick hanging man pattern?A . A hanging man always has a black real bodyB . A hanging man comes after a market rallyC . A hanging man has no lower shadowD . A hanging man need not be confirmed by other indicatorsView AnswerAnswer:...

Which of the following are true of futures volume and open interest?A . Open interest increases during a trending periodB . Volume may decline but open interest builds during an accumulation phaseC . Rising prices and declining volume/open interest indicate a pending change of directionD . All of the aboveView...