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.

Comments

Importance of Understanding the Finance for the Non-Financial Managers

Understanding Finance and Accounting will equip non-financial managers with the financial knowledge necessary to communicate more effectively with financial managers, analyze financial statements and understand how they relate, interpret a company's profitability, solvency and liquidity, explore the sources and costs of capital and the factors of investment decisions, and learn valuation principles and their impact on the value drivers of the firm. Participants will gain both competence and confidence in their interactions with financial colleagues and senior executives. Here is the importance of finance to the non-financial professionals: Why finance courses for non-professional executives? Every manager and high-level professionals has to understand finance. The more you go higher in the organization the more important it is to have that understanding. It’s the only way to feel confident in high-level meetings. Finance courses is of core function for good profi

A Beginner’s Guide on IFRS

It is through accounting that a business learns of its expense classifications along with gaining standards to best describe the financial problems of an entity. The accounting standards are guidelines for financial accounting, and the external entities (regulatory agencies, banks etc.) rely on these standards to ensure that relevant and accurate information is provided about the entity. The financial statements of publicly-transacted companies in many nations may require being prepared in accordance with the standards set by the IASB or the International Accounting Standards Board. What is IFRS? International Financial Reporting Standard or IFRS is a single set of accounting standards that has been created and is conserved by the International Accounting Standards Board for a consistent global application, by all economies in order to offer financiers and other financial statement users with the ability to compare the financial performance of publicly listed companies with their

Advantages of Doing a Financial Modeling and Valuation Course

Financial modeling and valuation is one of the most sought after financial courses that every finance professional requires to do in today’s competitive corporate world. There is an increasing demand for financial modeling analysts having essential skills and proficiency in financial modeling to dissect and analyze a company’s performance and make predictions about the company’s future. Some of the skills/areas that you can learn/ work in after pursuing financial modeling and valuation course are: Build financial models through step wise projection of income statement, balance sheet, and cash flows. This helps you to get better control of financial management for the company you work. You will learn to apply advanced Excel tools like Data Tables, Nested Ifs, Time Value of Money. You can develop the key schedules including debt/interest, depreciation, working capital, and equity. If you are working in an equity research firm these are the essential skills you may need fo

About Finance Courses in Dubai

Search This Blog