Free CMT-LEVEL-II Exam Braindumps (page: 30)

Page 29 of 66

Which of the following is true for the use of the chi square test?

  1. Used as the main confirmation test in Dow Theory
  2. Compares risk to expected returns
  3. Compares actual returns to expected returns
  4. Signals moving average crossovers

Answer(s): C



Which of the following is NOT a valid volume interpretation technique?

  1. Remove volume associated with large price moves
  2. Remove low volume periods
  3. Utilize statistical techniques to predict prices based on volume
  4. Construct volume moving averages

Answer(s): A



The only effective method of diversifying a portfolio is by including asset classes with ________ correlation to stocks such as cash, foreign exchange or commodities.

  1. positive
  2. meaningful
  3. low/negative
  4. moderately positive

Answer(s): C



Which of the following is most likely to occur when the overall market is deeply oversold and on the verge of reversing?

  1. Lagging groups fail to confirm new lows
  2. Leading groups fail to confirm new lows
  3. Relative strength of lagging groups begins to improve
  4. Leading groups make new lows and accelerate to the downside

Answer(s): B






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