CMT Level 3 Exam B with all Correct & 100% Verified Answers |Latest
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Q 1A). Vic Salazzo, CMT, is a technical analyst for a sell-side research department. He works researching
developing countries with rapidly modernizing economies. Securities laws in these countries are not as
extensive as elsewhere. Salazzo is contacted by a corporate board member from a large conglomerate
headquartered in one of the countries he researches. Which of the following is correct? - (ANSWER)d. He
will be required to abide by the requirements of the Code and Standards as well as the
laws and statutes of both the developing country and U.S. securities laws.
Correct
Q 1B.) Bobbi Guyere, CMT, manages several discretionary accounts for clients as a Registered Investment
Advisor. Guyere has begun to use Twitter messages to communicate new short-term trade ideas so that
her prospects and clients can track the progress of those trade ideas. Her clients love getting the
information because they feel she is keeping them up to the minute. The problem is that about half of
her client accounts are not suitable for such trades. Guyere has not communicated with these clients
about the difference in the trades she sends out on Twitter. As she hoped, some of her clients have
begun to ask how they can participate in such trades.
Which of the following is most accurate regarding Guyere's de facto marketing behavior? - (ANSWER)a.
Guyere is in violation of Standard III(C.2) because her recommendations are not consistent with the
original mandate given to her by half of her clients.
Correct
Q 1C.) Forest Paxton, CMT, works as a strategist for a firm that manages funds outsourced to them from
family offices. The director of sales has asked him for some figures to help launch a new specialized fund
offering based on one of his strategies. The director is looking for a five-year track record. Paxton only
has one year of out-of-sample data trading the system; the other four years are a back-test. The director
persuades him that the firm should publish all five years of data.
Which of the following statements is most likely correct? - (ANSWER)c. Paxton has violated Standard I(C)
by misrepresenting the data as actual performance data
instead of theoretical modeling and backtesting.
, CMT Level 3 Exam B with all Correct & 100% Verified Answers |Latest
Version |Already Graded A+
Correct
Q 1D.) Kelly Fallstead, CMT, is an independent author and renowned technical analyst. She is frequently
asked to make media appearances to discuss market conditions. In the course of a recent appearance, an
interviewer asked her about a rumor of a sizable position her husband's firmhad purchased in a pre-IPO
company. Although Fallstead was unaware of her husband's firm's dealings, she did not want to appear
uninformed so she acknowledged the rumor and began to articulate information she assumed would be
correct.
Which of the following statements is most accurate? - (ANSWER)c. Fallstead is in violation of multiple
standards listed in the CFA Standards of Professional Conduct.
Q 1E). Jayesh Ghelani, CFA, CMT, manages a portfolio of managed futures accounts for several
institutional clients. He invests in various spread strategies involving a number of commodities. Ghelani
has a hunch that gold prices are about to soar. In the past his hunches have been highly profitable
investments, so he asks his technical analyst to draft a bullish outlook for gold that he can use to help
persuade his clients to allocate more money toward gold than his mandate normally allows.
Which of the following statements about Ghelani's situation is the most accurate? - (ANSWER)c.
Ghelani's associate is not likely to be objective with his report when asked that way, and if Ghelani were
to share that information, he would be in violation of Standard I(B) regarding independence and
objectivity.
Correct
Q 1F.) Jim Wixom, CMT, is a proprietary trader who has been trading a system he has developed and
refined over the past five years. He has automated the system as part of a new offering from his firm's
CTA business. While reviewing the marketing material that went out last week, Wixom notices that the
performance data is much more favorable than he originally documented it to be. Because the firm is
only two weeks away from launching the offering, Wixom decides to say nothing.
Which of the following statements is most likely to be accurate? - (ANSWER)b. Wixom is in violation of
Standard III(D) by not making efforts to correct the reported data.
Version |Already Graded A+
Q 1A). Vic Salazzo, CMT, is a technical analyst for a sell-side research department. He works researching
developing countries with rapidly modernizing economies. Securities laws in these countries are not as
extensive as elsewhere. Salazzo is contacted by a corporate board member from a large conglomerate
headquartered in one of the countries he researches. Which of the following is correct? - (ANSWER)d. He
will be required to abide by the requirements of the Code and Standards as well as the
laws and statutes of both the developing country and U.S. securities laws.
Correct
Q 1B.) Bobbi Guyere, CMT, manages several discretionary accounts for clients as a Registered Investment
Advisor. Guyere has begun to use Twitter messages to communicate new short-term trade ideas so that
her prospects and clients can track the progress of those trade ideas. Her clients love getting the
information because they feel she is keeping them up to the minute. The problem is that about half of
her client accounts are not suitable for such trades. Guyere has not communicated with these clients
about the difference in the trades she sends out on Twitter. As she hoped, some of her clients have
begun to ask how they can participate in such trades.
Which of the following is most accurate regarding Guyere's de facto marketing behavior? - (ANSWER)a.
Guyere is in violation of Standard III(C.2) because her recommendations are not consistent with the
original mandate given to her by half of her clients.
Correct
Q 1C.) Forest Paxton, CMT, works as a strategist for a firm that manages funds outsourced to them from
family offices. The director of sales has asked him for some figures to help launch a new specialized fund
offering based on one of his strategies. The director is looking for a five-year track record. Paxton only
has one year of out-of-sample data trading the system; the other four years are a back-test. The director
persuades him that the firm should publish all five years of data.
Which of the following statements is most likely correct? - (ANSWER)c. Paxton has violated Standard I(C)
by misrepresenting the data as actual performance data
instead of theoretical modeling and backtesting.
, CMT Level 3 Exam B with all Correct & 100% Verified Answers |Latest
Version |Already Graded A+
Correct
Q 1D.) Kelly Fallstead, CMT, is an independent author and renowned technical analyst. She is frequently
asked to make media appearances to discuss market conditions. In the course of a recent appearance, an
interviewer asked her about a rumor of a sizable position her husband's firmhad purchased in a pre-IPO
company. Although Fallstead was unaware of her husband's firm's dealings, she did not want to appear
uninformed so she acknowledged the rumor and began to articulate information she assumed would be
correct.
Which of the following statements is most accurate? - (ANSWER)c. Fallstead is in violation of multiple
standards listed in the CFA Standards of Professional Conduct.
Q 1E). Jayesh Ghelani, CFA, CMT, manages a portfolio of managed futures accounts for several
institutional clients. He invests in various spread strategies involving a number of commodities. Ghelani
has a hunch that gold prices are about to soar. In the past his hunches have been highly profitable
investments, so he asks his technical analyst to draft a bullish outlook for gold that he can use to help
persuade his clients to allocate more money toward gold than his mandate normally allows.
Which of the following statements about Ghelani's situation is the most accurate? - (ANSWER)c.
Ghelani's associate is not likely to be objective with his report when asked that way, and if Ghelani were
to share that information, he would be in violation of Standard I(B) regarding independence and
objectivity.
Correct
Q 1F.) Jim Wixom, CMT, is a proprietary trader who has been trading a system he has developed and
refined over the past five years. He has automated the system as part of a new offering from his firm's
CTA business. While reviewing the marketing material that went out last week, Wixom notices that the
performance data is much more favorable than he originally documented it to be. Because the firm is
only two weeks away from launching the offering, Wixom decides to say nothing.
Which of the following statements is most likely to be accurate? - (ANSWER)b. Wixom is in violation of
Standard III(D) by not making efforts to correct the reported data.
