Question 1

Which of the following is NOT true in chart interpretation:

Options :

A : A price chart is a representation of human behavior

B : The goal is to find consistent, reliable and logical patterns

C : Chart patterns can be caused by commonly used trading techniques

D : The behavioral aspects of prices are irrational

Answer: D

Question 2

According to the MTA Code of Ethics, what prohibitions MUST be adhered to after making a buy or sell recommendation?

Options :

A : Allow adequate time for clients to act on recommendations before the analyst acts on the recommendation

B : Analysts must give clients and their employer adequate time to trade, but the analyst-s family members are under no such restriction

C : Analysts may effect trades for their own account even if their employer has not had time to act on their recommendation

D : Insider trading activity is the subject of SEC regulations, therefore the MTA Code of Ethics is silent on this issue

Answer: A

Question 3

This chart type integrates volume directly into the price bar:

Options :

A : Equivolume

B : VWOP

C : Renko

D : Ichimoku Cloud

Answer: A

Question 4

The Sharpe Ratio is defined as?

Options :

A : (expected return plus the risk free interest rate) divided by the standard deviation of returns

B : (expected return minus the risk free interest rate) divided by the standard deviation of returns

C : (expected return divided by the risk free interest rate) divided by the standard deviation of returns

D : (expected return times the risk free interest rate) divided by the standard deviation of returns

Answer: B

Question 5

The "Rising 3 Methods" candlestick pattern is: I. Bullish II. Bearish III. Long White Body followed by a series of smaller falling candles IV. Long Black Body followed by a series of smaller rising candles

Options :

A : I & III

B : I & IV

C : II & III

D : II & IV

Answer: A

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