2018 CMT print errata

CMT Print Errata
Level I

Date

Question ID

Level

Location

Update or Errata

5/31/18

N/A

1

Level 1 2018, Chapter 7,
p.125

5/31/18

N/A

1

5/31/18

N/A

1

Level 1 2018, Chapter 11, p.
250
Level 1 2018, Chapter 15 pp.
321 and 323

Under Entry and Exit, the text should read: “Figure 7.1, a double top, shows an
entry from below and a downward exit. On the other hand, a bottom
formation has an entry from above and an exit upward.
The last Learning Objective Statement should read “…a point and figure chart”

5/31/18

N/A

1

5/31/18

N/A

1

7/30/18

N/A

1

Level 1 2018, Chapter 16,
p.369
Level 1 2018, Chapter 8,
p.178
Level 1 2018, Chapter 16,
p.369

•

P.321: Number 2 under Step-by-Step: From Dollars to Yen should read,
“The yen’s value is the inverse, so divide 100 by 80”
• P.323: the sentence should read, “The gap between them, 2.5 yen, is
the bid-ask spread.”
The correct answer to number 4 is “e”
Under Knockout Pattern, the text should read: “Figure 8.13 shows a steady
upward trend in the Nikkei 25 with occasional two-day sell-offs…”
The correct answer to number 1 is B. The correct answer to number 4 is E.


CMT Print Errata
Level II

5/31/18

N/A

2

5/31/18

N/A

2

5/31/18

N/A

2

5/31/18
5/31/18

N/A
N/A

2
2

5/31/18

N/A

2

Level 2 2018, Chapter 1,
page 14
Level 2 2018, Chapter 1,
page 15

Level 2 2018, Chapter 6,
page 169
Level 2 2018, Chapter 7
Level 2 2018, Chapter 8,
p.236
Level 2 2018, Chapter 9

2002 and 2003 should be updated to 2000 under Interpreting Today’s S&P
Using Dow Theory
850 should be updated to 750 under Transition from Bull to Bear in the S&P
Under Moving Average Convergence/Divergence (MACD), Step 4 should read,
“The MACD line, the faster responding line in the bottom panel of Figure 6.9…”
All instances of Mark Chaiken should be updated to Marc Chaikin
Under Entry and Exit, the text should read: “Figure 8.1, a double top, shows an
entry from below and a downward exit. On the other hand, a bottom
formation has an entry from above and an exit upward.”
• Under Knockout Pattern, the text should read: “Figure 9.13 shoes a
steady upward trend in the Nikkei 225 with occasional two-day selloffs…”
• Figure 9.21 is corrected below


CMT Print Errata

7/30/18

N/A

2

Level 2 2018, Chapter 27,

p.578

The correct formula should be written as:

y = b1x1 + b2x2 + . . . . + bk xk + a


CMT Print Errata

Level III
5/31/18

N/A

3

5/31/18

N/A

3

5/31/18

N/A

3

5/31/18

N/A

3

5/31/18

N/A

3

5/31/18

N/A

3

5/31/18

N/A

3

7/30/18

N/A

3

Level 3 2018, Chapter 1,
page 24

Level 3 2018, Chapter 2, p.
41 & 52
Level 3 2018, Chapter 5,
page 213

Student t test should be changed to Student’s t-test under Components
“Stedhahl” should be updated to Stendahl

Preface, p. xv

Probability of Success and Ruin
• Equation should read A =0.60 - (1-.60) = 0.20
• 1 should be changed to 2 in (1/3)
• .33 should be updated to .66
• .11 should be updated to .44
• 11 should be updated to 44
Under Summary, the first sentence should read: “The business cycle tends
to lag the financial cycle…”
Under Dogs of the Dow and Small Dogs, the second sentence should read:
“…you bought the 10 members of the Dow with the highest stock
dividend...”
The table should read:

Level 3 2018, Chapter 33,
p.905
Level 3 2018, Chapter 4,
p.143

Risk Management / 1-7
Asset Relationships/ 8-15

Portfolio Management/ 16-18
Behavioral Finance/ 19-24
Volatility / 25-27
Classical Methods / 28 - 33
The first Learning Objective Statement should read, “Explain why the
observations listed in this chapter…”
The Probability of Occurrence for Run of Length 2 should be 1/16 instead
of 1/18.

Level 3 2018, Chapter 17,
p.515
Level 3 2018, Chapter 24,
p.666


CMT Print Errata