CFA Level 2 – Your Ultimate Guide to Exam Structure, Fees, Syllabus, Prep, Classes & More

The CFA Level 2 exam is a significant step for those aiming to excel in finance. It’s a part of the Chartered Financial Analyst (CFA) program. This exam focuses on applying financial theories to real-world scenarios, such as analyzing investments and making informed decisions.

Achieving certification in CFA Level 2 demonstrates a solid grasp of financial concepts. It enhances career prospects, particularly in the finance and investment sectors. Employers value this certification as it signifies rigorous training and expertise in the field.

Prior to attempting the Level 2 exam, candidates must pass Level 1.

CFA Level 2 Exam Structure

The Level 2 CFA exam is the second stage of the prestigious Chartered Financial Analyst (CFA) certification, administered globally by the CFA Institute. This exam is one of three levels required to attain the CFA designation. 

Format of the CFA Level 2 Exam

The CFA Level 2 exam consists of item sets called vignettes, also known as mini-case studies. These vignettes cover a total of 88 multiple-choice questions.

Structure

The exam is divided into two sections, each containing 44 questions. Each section lasts approximately 2 hours and 15 minutes.

This format allows candidates to demonstrate their understanding and application of financial concepts within a realistic, time-constrained setting.

Duration

Candidates will have 4 hours and 24 minutes to complete the Level 2 exam, divided into two equal sessions of 2 hours and 12 minutes each, with an optional break in-between.

Frequency

The Level 2 exam is conducted thrice annually, in May, August, and November. This schedule provides candidates with multiple opportunities throughout the year to sit for the exam and progress toward earning their CFA designation.

Assistance During the Exam

If candidates require assistance during the exam, proctors will attend to their needs promptly. Candidates are encouraged to continue working on their exams until a proctor arrives. The exam has been meticulously designed to accommodate minor disruptions or pauses, ensuring candidates have ample time to answer all questions.

84% of our students recommend you join Proschool for CFA Prep

How Many Hours Does It Take to Study for the CFA Level 2 Exam?

The CFA® Program allows candidates to tailor their preparation to suit their unique requirements and situations. Here are some figures to consider when devising a study strategy for the CFA Level 2 exam:

Successful candidates typically spend an average of over 300 hours studying for each level of the CFA Exam.

Approximately half of the candidates who successfully passed the Level 3 exam achieved this milestone by passing each exam on their first attempt, meaning they sat a total of three exams. Meanwhile, about a quarter of successful candidates sat for a total of four exams before passing Level 3. These numbers serve as useful benchmarks for candidates as they plan and allocate their study time effectively for the Level 2 exam.

Weightage of Exam Sections

The topics covered in the Level 2 CFA exam are the same as those studied during Level 1 preparation. However, in Level 2, these topics are examined with greater depth and detail compared to CFA Level 1.

The CFA Level 2 exam shifts its focus from general knowledge of investment tools to a more in-depth exploration of asset valuation within the same 10 topics covered in Level 1.

The exam weights for each of the 10 Level 2 topics are provided in ranges, indicating their relative importance in the exam. This distribution helps candidates understand which areas to prioritize in their study efforts.

• Ethical and Professional Standards: 10–15%
• Quantitative Methods: 5–10%
• Economics: 5–10%
• Financial Statement Analysis: 10–15%
• Corporate Issuers: 5–10%
• Equity Investments: 10–15%
• Fixed Income: 10–15%
• Derivatives: 5–10%
• Alternative Investments: 5–10%
• Portfolio Management and Wealth Planning: 10–15%

Additionally, you can use a Study Planner to further personalize the topic sequence according to your preferences and study style. This tailored approach ensures a more efficient and effective preparation for the Level 2 exam.

Also Read – CFA Jobs & Salaries In India After CFA Level 1, Level 2 & Level 3

CFA 2 Exam Item Set Format & Complexity

Item Set Format

In the CFA Level 2 exam, there are 11 item sets for each session, making a total of 22 on the exam. Out of these, 20 are scored, and 2 are trial questions that won’t count towards your score.

How It Works

Each item set has multiple-choice questions that you need to answer using info from a story called a vignette. Unlike the Level I exam, where questions are standalone, here you’ll have to refer to the vignette before answering each question.

Random Placement of Topics

The topics covered in the Level II exam will be randomly placed. This means you might find any topic in either the first or second sessions or even in both. Each item set starts with a statement of the topic and the total points available. For example:

Topic: Quantitative Methods

Total Point Value for This Set: 12 Points

Complexity

In the CFA Level 2 exam, you’ll need to use tools to look at financial info and figure out how much they are worth. The exam has stories called vignettes that focus on specific topics.

The exam also looks more closely at managing investments and portfolios. It gives you tricky situations to see if you get how to handle them. These situations are like real-life ones, so you can see how well you understand financial stuff.

CFA Level 2 Passing Criteria and Grading

Grading Process

Why it takes so long to get your computer-based exam results? Here’s the detailed breakdown:

• Testing centers send data to the Prometric post-exam.
• Prometric consolidates and shares results with CFA Institute, which can take days due to the high candidate volume.
• CFA Institute reviews exam experiences and candidate feedback.
• Validation of received results.
• The official analysis begins (might take weeks).
• Standard Setting grading determines a fair passing score over a few days.
• CFA Institute recommends the Minimum Passing Score based on graders’ judgments.
• Automated score reports are generated and quality-checked.
• Results are scheduled for release, considering candidate demand.

This meticulous process ensures accurate and fair results for all candidates.

Passing Criteria

For the CFA Level 2 exam, aiming for a score of at least 65% increases your likelihood of passing. However, the pass/fail threshold can vary annually, making any score under 70% potentially decisive based on the year’s weighted scoring system.

Here are the latest pass rates for CFA Level 2 exams.

Also Read – Unlock Job Opportunities After CFA Level 2

Fees (CFA Level 2 Cost)

Exam Registration Fees

Registration for the 2024 & 2025 CFA exams is open! 

Early birds pay a registration fee of USD 940, while the standard fee is USD 1250. Remember, there’s also a one-time enrollment fee of USD 350. Don’t miss out—secure your spot and save by registering early!

CFA Level 2 Exam Registration Deadlines

CFA Level 2 Exam Scheduling & Rescheduling

Please note: All deadlines end at 11:59 p.m. ET.

Cost of Study Materials and Resources

The exam fee covers the cost of e-books, providing candidates with electronic versions of the study materials. However, recognizing that digital formats may not suit everyone’s learning preferences, candidates have the option to purchase a printed version of the CFA curriculum separately. This printed version offers the same thorough content as the e-books but in a tangible format, providing flexibility for candidates who prefer physical study materials.

Also Read – CFA Scholarships – Types, Eligibility & Application Process

Here are some additional FREE resources available for CFA candidates:

• Free Informational Videos: Access informative videos by expert instructors at Kaplan Schweser. Gain valuable exam tips, strategies, industry insights, and updates to support your preparation journey.
• Free CFA® Question of the Day: Sign up to receive a daily practice question directly in your inbox. These questions are tailored to your exam level and will continue until exam day, helping you stay sharp and focused.
• Schweser’s Monthly Candidate Guide: Schweser offers a monthly Candidate Guide packed with free resources curated to enhance your study plan. Stay updated with the latest tools and materials designed to support you on your path to exam success.

You can also access comprehensive Level II CFA exam tutorials, learn TI BAII Plus calculator basics, explore advanced functions, sample Schweser’s study materials, and review CFA Institute question videos.

Also Read – 9 Key Differences: CFA Level 1 vs 2 That You Should Know

Syllabus (CFA Level 2 course outline)

• Ethical and Professional Standards: Focuses on ethics, challenges to ethical behavior, and the role of ethics and professionalism in the investment industry. Covers CFA Institute Code of Ethics, Standards of Professional Conduct, and Global Investment Performance Standards (GIPS®).
• Quantitative Methods: Explores quantitative concepts and techniques used in financial analysis and investment decision-making. Topics include descriptive statistics, characteristics of return distributions, probability theory, and quantifying risk.
• Economics: Analyzes fundamental concepts of supply and demand, market structures, macroeconomic principles, aggregate output and income measurement, aggregate demand and supply analysis, economic growth factors, and the business cycle.
• Financial Statement Analysis: Explains financial reporting procedures, standards governing financial reporting disclosures, and basic financial statements. Emphasizes the analysis of financial statements and alternative accounting methods.
• Corporate Issuers (formerly Corporate Finance): Introduces corporate governance, investing and financing decisions, corporate governance analysis, stakeholder management, environmental and social considerations in investing, leverage management, and working capital management.
• Equity Investments: Explores equity investments, security markets, indexes, industry and company analysis, equity securities analysis, and basic equity valuation models.
• Fixed Income: Covers fixed income securities, yield measures, risk factors, valuation measurements and drivers, calculating yields and values of fixed income securities, bond returns and risks, and credit analysis principles.
• Derivatives: Builds a conceptual framework for understanding derivatives and derivative markets. Topics include forward commitments, valuation concepts, and arbitrage.
• Alternative Investments: Explores hedge funds, private equity, real estate, commodities, and infrastructure. Discusses the use of alternative investments for diversification and higher returns.
• Portfolio Management and Wealth Planning: Covers portfolio and risk management fundamentals, return and risk measurement, portfolio planning and construction, needs of individual and institutional investors, available investment solutions, and the capital asset pricing model.

These topics collectively cover the breadth of knowledge required for the Level 2 CFA exam, with each topic contributing to a specific percentage of the exam’s content.

Also Read – Essential Insights into the CFA Level 2 Syllabus & Course Outline

Emphasis on Higher Complexity and Application

Level 2 of the CFA exam is a significant step up in complexity, focusing on application and analysis, particularly in asset valuation. It requires more than just memorization; candidates must demonstrate their ability to apply tools and understand the intricate relationships within financial data. With a historical pass rate of 46%, Level II is widely regarded as the toughest hurdle to overcome in the CFA journey.

CFA Level 2 Exam Prep

Preparing for Level II of the CFA® Program requires dedication and strategic planning. Here’s a guide to help you structure your study plan effectively and make the most of your preparation time.

The consensus among CFA candidates is that a minimum of 300 hours is required to adequately prepare for Level 2. According to a CFA Institute survey, candidates reported spending an average of 328 hours studying for this exam. To spread this time effectively, aim for a study schedule of about 12.5 hours per week over a 6-month period. However, adjust your study intensity based on your starting point and personal circumstances.

• Structure an Effective Study Plan: Set clear goals, allocate study hours based on topic importance and your proficiency, create a study calendar with milestones, and include regular review sessions.
• Utilize Practice Item Sets and Mock Exams: Practice with item sets and mocks to understand the exam format, analyze your performance, and focus on understanding answer reasoning.
• Master Time Management: Practice time management strategies, allocate study time efficiently, and prioritize tasks based on importance and difficulty.
• Review Level 1 Material: Refresh key Level 1 concepts, identify overlaps with Level II, and deepen understanding of advanced topics.
• Leverage Level 1 Learning: Reflect on successful study strategies from Level 1, incorporate effective techniques into Level II prep, and learn from past mistakes to improve performance.

About Proschool’s CFA Level 2 Prep Course

Proschool’s CFA Level 2 Classes emphasizes speed, accuracy, and depth of knowledge, facilitating daily interactions with faculty to enhance learning efficiency. The curriculum delves into asset valuation intricacies, covering areas such as Equity, Fixed Income, and Derivatives, and detailed training in Financial Statement Analysis tools.

Highlights Of Level II Of The CFA Program

• New batches every 90 days
• Available in Online mode
• 8+ hrs of faculty-led lectures weekly
• 10+ Case studies and 1000+ questions
• 200+ hours of Curriculum

Key Benefits

• Gain added advantage for job placements post-course completion.
• Intensive focus on exam pass commitment.
• A comprehensive curriculum designed to ensure proficiency in asset valuation.

With its robust curriculum, interactive learning environment, and commitment to student success, IMS Proschool’s CFA Level 2 Prep Course provides a competitive edge for aspiring financial professionals.

FAQs

Q: What is the pass rate for CFA Level 2?

A: The pass rate for CFA Level 2 typically ranges between 40% to 50%.

Q: How does the difficulty of CFA Level 2 compare to Level 1?

A: CFA Level 2 is generally considered more challenging than Level 1 due to its focus on application and analysis rather than just memorization of concepts.

Q: Are there any changes in exam format from Level 1 to Level 2?

A: Yes, students preparing for the Level 2 exam will encounter changes in the learning modules, with structural adjustments in the curriculum. New topics have been introduced, while some have been shifted to Level 1. A notable change is the division of multiple regression content into four learning modules.

In the PSM (Portfolio Selection and Management) module, Level 2 students will receive practical training in Analyst Skills, Python, Data Science, and AI. These updates aim to enhance the learning experience and align the curriculum with industry demands.

Q: Can I skip CFA Level 1 and directly appear for Level 2?

A: No, candidates must pass Level 1 before registering for Level 2. Each level builds upon the knowledge and skills gained in the previous level.

Q: How soon should I start preparing for CFA Level 2 after Level 1?

A: Plan to dedicate at least 325 total hours to your Level II CFA Exam preparation, spread over six to nine months. If the prospect of studying for this duration seems overwhelming, consider extending your study period to nine months instead of six.