Free CMT-LEVEL-II Exam Braindumps (page: 29)

Page 28 of 66

Which of the following is true of moving averages?

  1. Moving averages provide the most valid trade signals in sideways markets
  2. Moving averages provide the most valid trade signals in trending markets
  3. Moving averages always provide more valid trade signals than oscillators
  4. Oscillators always provide more valid trade signals than moving averages

Answer(s): B



Technicians refer to the speed of price movement as:

  1. Volume
  2. Trend
  3. Slope or momentum
  4. Ratio of two prices

Answer(s): C



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

  1. It centers on the premise that systemic risks in the financial markets can be diversified away.
  2. It is a 45 degree line plotting possible risk versus return
  3. It is a plot of the highest possible returns obtainable over a series of risk levels
  4. It is unrelated to the risk free rate

Answer(s): C



Intermarket analysis can be used for which investment decisions?

  1. Decisions among asset classes
  2. Decisions among equity market sectors
  3. Decisions among mutual fund
  4. All of the above

Answer(s): D






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