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All You Need To Know About CFA Level 2

Congratulations CFA aspirant on clearing the first level of CFA and climbing up the ladder to Level 2! It is important to know that this is an achievement in itself but you still have to complete two more levels to earn the Chartered Financial Analyst credential.

Now that you have cleared level 1 here is everything you need to know about CFA level 2 - 

 Concept:
The concept of level 2 is fairly different as compared to level 1. While level 1 was more focused on basic knowledge of investments valuation, Level 2 has a more practical approach regarding this concept. You will have a detailed analysis in investment management and portfolio concepts which will help evaluate that you are capable enough to apply these theories in a highly practical and real-life situation.

Curriculum and Weight age:

Below is a list of the 10 topics that are covered in the curriculum and the weight that each theme carries is also listed below:

· Ethical and Professional Standards
10 - 15%
· Quantitative Methods
5 - 10%
· Economics
5 - 10%
· Financial Reporting and Analysis
10 - 15%
· Corporate Finance
5 - 10%
· Equity Valuation
10 - 15%
· Fixed Income
10 - 15%
· Derivatives
5 - 10%
· Alternative Investments
5 - 10%
· Portfolio Management
5 - 15%

*Kindly bear in mind that the weight is bound to change on a year-to-year basis.

Examination Structure:

· 120 Multiple Choice Questions
· 20 Item Sets with 6 Multiple Choice Questions Each
· Morning Session – 10 Item Sets
      · Afternoon Session – 10 Item Sets 

Considering the practicality of the exam, level 2 requires you to understand the concepts thoroughly as you need to apply the theoretical model on real-life scenarios, rather than just mugging them up. Thus, it is essential that you take out some time and practice sample tests which will help you during the preparation and give you an idea of the questions asked in the exam.  

Note: Unlike the CFA Level I exam, a candidate can appear only once a year for Level II exam.

So be sure that you prepare well enough to clear CFA Level 2 in one attempt as you would have to wait for a year to appear in the exam again. 

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