Advisor Trainingby Parsonex
Sign in

How to Study for the CFA Level II

The CFA Level II at a glance

Level
Level II of III sequential exams required for the CFA charter
Format
22 item sets (vignettes) of 4 multiple-choice questions each, split into two sessions of 2 hours 12 minutes (4 hours 24 minutes total), computer-based, with an optional break between sessions; 20 item sets are scored and 2 are unscored trial sets
Passing score
CFA Institute does not publish a fixed passing percentage. The Minimum Passing Score is set separately for each exam administration through a criterion-referenced standard-setting process.
Number of questions
88 multiple-choice questions in 22 item sets
Prerequisites
Passing the CFA Program Level I exam, and meeting the CFA Program enrollment requirements.
Who it's for
Candidates who have passed Level I and are working toward the CFA charter, including analysts, portfolio managers and other investment professionals who apply valuation and analysis tools to investment cases.

  1. Read the official exam guide

    Official CFA Level II exam guide (CFA Institute) ↗

  2. Know what the exam covers

    • Quantitative Methods5-10%

      • Quantitative Methods

        Multiple regression and model misspecification, time-series analysis, machine learning and big-data projects.

    • Economics5-10%

      • Economics

        Currency exchange rates and equilibrium value, and economic growth.

    • Financial Statement Analysis10-15%

      • Financial Statement Analysis

        Intercorporate investments, employee compensation, multinational operations, financial institutions and quality of financial reports.

    • Corporate Issuers5-10%

      • Corporate Issuers

        Dividends and share repurchases, ESG considerations, cost of capital and corporate restructuring.

    • Equity Valuation10-15%

      • Equity Valuation

        Discounted dividend, free cash flow, market-based and residual income valuation, and private company valuation.

    • Fixed Income10-15%

      • Fixed Income

        Term structure and interest rate dynamics, arbitrage-free valuation, bonds with embedded options, credit analysis models and credit default swaps.

    • Derivatives5-10%

      • Derivatives

        Pricing and valuation of forward commitments and of contingent claims.

    • Alternative Investments5-10%

      • Alternative Investments

        Commodities, real estate and real estate securities, and hedge fund strategies.

    • Portfolio Management10-15%

      • Portfolio Management

        Economics and investment markets, active portfolio management, ETFs, multifactor models, market risk measurement and backtesting.

    • Ethics10-15%

      • Ethical and Professional Standards

        The Code and Standards of Professional Conduct and their application.

  3. Practice by topic

  4. Try mixed practice questions

    CFA Level II practice questions with answers

Practice the CFA Level II

Start practicing free

Considering a career as an advisor?

Advisor Training is brought to you by Parsonex, a wealth-management firm. See what building your practice with us looks like.

Explore careers at Parsonex