Introduction

First of all, congratulations! We hope that you have already passed out CFA Level 1 and now you are committed to going for CFA Level 2. However, there are a few things you want to know.

• First, how much effort you need to give in passing out the CFA level 2 exam and whether it would be as easy/ difficult as CFA level 1.
• Second, how should you study the subjects of CFA level 2 and when should you start?
• Third, is there any chance that you could fail? And what types of questions you need to face in the CFA level 2 exam?
• Fourth, can you get any assistance to improve your learning curve and ensure that you pass out with flying colours?

CFA Level 2 Course Details

As you have already cleared CFA Level 1, you know about the CFA exam already. However, if you compare CFA level 1 with level 2, you will make a mistake. Because CFA level 2 is much harder than CFA level 1. And to give you a glimpse, most CFA students get stuck in CFA Level 2 examination. So you can understand how valuable it is to take CFA level 2 sincerely.

Below is the CFA Level 2 exam format.

Course Summary

Exam	CFA Level 2
Number of questions (total)	120
Type of question	Vignettes (Mini-cases)
Time allotted	360 minutes
Full marks	360 points
Every correct answer	3 points
Every incorrect answer	No penalty
Sessions	2 (Morning & Afternoon)
Set of questions in each session	10
In each question, numbers of vignettes	6

source: CFA Institute

I found CFA Level 2 be the hardest of all three levels and there are four reasons for which you should take CFA level 2 more seriously –

• The same old routine won’t work: As a CFA level 1 student you may have maintained a routine that has helped you succeed in the examination, but it will not work in the CFA level 2 exam. Because even if the subjects are similar, however, their weightage on each subject would be different and you need to think more about application than theory while answering the questions in the CFA level 2 examination.
• Vignette questions will replace multiple-choice questions: This is a huge change! The mindset for answering multiple-choice questions is much different than answering vignette questions. You need to think with all your knowledge and then answer the question. And in some cases, you need to go through a thorough calculation to come to a conclusion.
• Time constraint: Answering multiple-choice questions is easier within a set time. While answering vignette questions, you need more time; but unfortunately, you won’t get any. You need to answer 120 vignette questions within 360 minutes (and remember the calculation part as well).
• Study habits need to be changed: Routine needs to be changed because of the width of the subject because you won’t be able to finish the syllabus within a short period of time. But what’s more important is to change your study habits. Because your study habits will ultimately decide whether you will be able to clear the CFA level 2 exam. Study habits mean how deep you study each time you study, not only how long you study.

So in this given circumstance, what would be your option? What should you do to clear the CFA level 2 exam in one go?

I had faced similar questions when I prepared for CFA level 2. Students who successfully clear the exam realized that CFA level 2 is much tougher and much intense exam. So we brought in all the experts in the field and we created the CFA Level 2 Training Course.

About CFA Level 2 Training Course

Course	CFA Level 2 Training Course
Deal	You get access to all the 10 parts of this course.  You do not need to register for each course separately.
Hours	100+ Video Hours
Core Coverage	Ethics & Professional Standards, Equity Investments, Alternative Investments, Corporate Finance, Portfolio Management, Quantitative Methods, Fixed Income, Economics, Derivatives, Financial Reporting & Analysis
Course Validity	You get Lifetime Access. No limit on the number of times you can view this course.
Pre-Requisites	CFA Level 1 Pass
Type of Training	Video Course – Self-Paced Learning
System Requirement	1 GB RAM or higher
Other Requirement	Speaker / Headphone
Recommended Study Hours	A minimum of 300 hours of preparation per CFA® exam level is recommended.

CFA Level 2 Prep Course section details are as per below

S. No	Modules	Video Hours
1	Ethical & Professional Standards	8
2	Quantitative Methods	10
3	Economics	11
4	Financial Reporting & Analysis	19
5	Corporate Finance	8
6	Equity Investments/Valuation	20
7	Fixed Income	16
8	Derivatives	14
9	Alternative Investments	4
10	Portfolio Management & Wealth Planning	5
		115

CFA Level 2 Training Course Description

The course is rich with practical examples and materials that you can digest at your own pace. But before going into detail elaboration of the course, let’s talk about two things that would be important for you to know.

• First of all, this course is not for everyone. If you feel that you will just go through the course and you will pass the exam, you are wrong. You need to invest a lot of time practicing the lessons you will learn in this course.
• Second, after you complete these tutorials, it is important for you to practice the questions provided at the end of each chapter in CFAI level Books. Additionally, you must give mock tests to ensure that you have enough practice of the full six-hour exam. You can find details of CFA Level 2 Mock Test here.

Till now, many of our students took this course and they have reported that this course has benefited them very effectively as the course is created by industry experts and while taking into account the issues students face.

Let us look at the syllabus of CFA Level 2 (quite comprehensive).

source: CFA Institute

Now let’s have a look at what you will learn in the CFA level 2 course –

• Ethical & Professional Standards (10-15%): You will learn about ethical standards in more detail and you will learn to apply the same via case studies. The course will guide you to study trade allocation: fair dealing & disclosure, changing investment objectives, super selection, etc.
• Quantitative Methods (5-10%): The subject matter will get deeper and more complex. You will get to learn about correlation & regression, multiple regression & issues in regression analysis, time-series analysis, probabilistic approaches, etc.
• Economics (5-10%): From the weightage, you can understand that the weight has reduced because, in CFA level 2, the focus of the subjects is more on investments. You will learn currency exchange rates: determination and forecasting, economic growth and investment decision, the economics of regulation, etc.
• Financial Reporting & Analysis (15-20%): Financial Reporting and Analysis is not an important subject as it is in the CFA Level 1 exam. Thus the weightage slightly differs. And there are also a few changes you would see in the syllabus of 2017. So we created the course while keeping the same in mind. You will learn about inter-corporate investments, post-employment, share-based compensation, multinational operation, etc.
• Corporate Finance (5-15%): Corporate finance is of almost equal importance as it is in CFA level 1. You will get to know about capital budgeting, capital structure, dividends & share buybacks repurchases, corporate performance, governance, mergers & acquisitions, etc.
• Equity Investments/Valuation (15-25%): The weight has increased a lot than CFA level 1 because as already mentioned the purpose of the level-2 exam is to focus more on investments. You will learn about equity valuation, industry, and company analysis and discounted dividend valuation, etc.
• Fixed Income (10-20%): You will learn about fixed income: valuation concepts and topics in fixed income analysis.
• Derivatives (5-15%): This part is very important in the CFA level 2 exam. You will get to learn pricing and valuation of forwarding, valuation of contingent claims, derivatives strategies, etc.
• Alternative Investments (5-10%): This is also one of the major parts of CFA level 2 course materials. You will get to know private real estate investments, publicly traded real estate securities, private equity valuation standards, commodity derivatives, etc.
• Portfolio Management & Wealth Planning (5-10%): You will learn a great deal about the portfolio management process and the investment policy statement, multifactor models, managing and measuring market risk, analysis of active portfolio management, etc.

This course will not only teach you all the subjects; it will also give you practical applications of the same so that you can practice at your pace and whenever you would like to. This course will act as your ally throughout your preparation time.

CFA Level 2 Pass Rates

• Between 2000-2016, the average passing rate for CFA Level 2 was around 44%.
• In June 2016 the passing rate for CFA level 2 was at 46%.

source: CFA Institute

CFA Level 2 Sample Questions

Now let’s have a look at the sample question so that you can get an idea about how to approach the whole thing.

source: CFA Institute

As we can see from above, this is just 1 page out of the 2-page vignette. Imagine the time taken to fully understand this vignette.

Now let us see the questions on the same.

source: CFA Institute

As you note from above, there are six questions in each vignette. These questions require your full and thorough understanding of the vignettes. Mostly, these questions are interconnected. Your answer to the first question may lead to the answer to the second question. Therefore the stakes are very high and you cannot afford to overlook anything in the curriculum.

CFA Level 2 Prep Course FAQs

Course Reviews / Testimonials