Chartered Financial Analyst
CFA Level - 2
CFA Level 2 is the second level of the Chartered Financial Analyst (CFA) examination, offered by the CFA Institute. This stage focuses on the application and analysis of investment tools and concepts introduced in CFA Level 1, with deeper exploration of equity valuation, fixed income, derivatives, portfolio management, and corporate finance using real-world scenarios.
Eligibility and Registration
Bachelor's degree must be completed before exam registration. Or, qualify through the 4,000-hour work/education path. Register once you've passed Level 1.
About the Exam - CFA Level 2
CFA Level 2 is the second level of the Chartered Financial Analyst (CFA) examination, offered by the CFA Institute. This stage of the CFA program focuses on the application and analysis of investment tools and concepts introduced in CFA Level 1. It offers a more in-depth exploration of core topics including equity valuation, fixed income, derivatives, portfolio management, and corporate finance, with a strong emphasis on data interpretation and real-world scenarios. The curriculum assumes you understand Level 1 concepts and introduces advanced material such as complex valuation techniques and industry-specific applications.
CFA prep resources
CFA Level 2 Curriculum Modules
Each with its respective weighting as follows:
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 (10-15%)
Topic Deep Dives
CFA Level 2 building blocks with quick anchors into the syllabus.
Ethical and Professional Standards
Level II ethics drills into research independence, trade allocation, and supervisory responsibilities when portfolios span multiple asset classes. You learn how to defend decisions with explicit references to the Code and Standards.
Quantitative Methods
Focuses on multi-factor regressions, time-series diagnostics, machine-learning style classification, and resampling so you can connect data directly to valuation outputs and risk systems.
Economics
Builds global macro views, currency forecasts, and scenario analysis that ultimately feed capital market expectations, relative valuation multiples, and portfolio tilts.
Financial Statement Analysis
Emphasizes intercorporate investments, pensions, share-based compensation, and multinational operations so you can adjust statements before valuing a company.
Corporate Issuers
Covers capital budgeting with real options, capital structure optimization, and corporate governance considerations when raising funds in global markets.
Equity Investments
Dives into residual income, free cash flow, private company valuation, and how industry structure, ESG data, and competitive forces influence your model assumptions.
Fixed Income
Focuses on term-structure modeling, credit analysis, securitised products, and constructing curve or spread trades with precise duration and convexity targets.
Derivatives
Extends option, swap, and futures pricing into real risk-management use cases, including delta-gamma hedging, credit derivatives, and structured notes.
Alternative Investments
Explores private equity waterfall mechanics, real asset valuation, infrastructure projects, and due-diligence frameworks for illiquid deals.
Portfolio Management
Synthesizes the curriculum by integrating multi-factor risk models, active management metrics, and client constraints into actionable portfolio recommendations.
Composition and Exam Structure
Composition and Exam Structure
CFA Level 2 consists of 88 questions arranged in item sets (vignettes) with multiple questions each. The exam is split into two sessions of 2 hours 12 minutes, all computer-based. The questions test application, interpretation, and analysis of financial data across key topics in the CFA curriculum.
Format
88 questions arranged in vignette-style item sets
Duration
Two sessions of 2 hours 12 minutes each; computer-based
Focus
Application, interpretation, and analysis of financial data
Coverage
Questions span all key CFA Level II topic areas
88 questions | two sessions | vignette-based
Preparation Tips
Practical checkpoints to keep your prep on track.
Conceptual Depth
CFA Level 2 emphasizes complex concepts and requires candidates to go beyond memorization. Understanding valuation techniques, financial modeling, and accounting standards is critical to succeed.
Vast Syllabus
CFA Level 2 includes 10 topic areas covered across numerous readings and LOS (Learning Outcome Statements). The wide coverage requires early planning and regular review cycles.
Application-Oriented
The exam format is vignette-based. Each item set tests application and synthesis of concepts in real-world scenarios. Practice solving case-based questions is essential.
Integration of Concepts
Many questions span across topics such as equity, fixed income, and financial reporting. Candidates must be able to connect concepts across the curriculum to solve integrated item sets.
Depth of Knowledge
CFA Level 2 builds upon Level 1 foundations. A solid grasp of concepts like time value of money, ratio analysis, and ethics is essential to understand and apply advanced Level 2 material.
Time Management
With 22 item sets (vignettes) to solve in two sessions, pacing is key. Practice with timed mock exams helps build the speed and accuracy needed for success.
More resources
Key Level 2 links in one place
Hop to plans, syllabus, fees, and popular Level 2 reads.
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Frequently Asked Queries
Level II compresses up to six questions into a single vignette. You must scan the exhibits first, flag the data you will need, and then answer questions without rereading the entire story. Daily timed item-set drills are the fastest way to build that muscle.
Financial Reporting & Analysis, Equity, Fixed Income, Portfolio Management, and Ethics each contribute 10–15% of the score. Give those heavyweights extra revision time before rotating to the lower-weight readings.
Recreate statement adjustments, currency translations, and residual-income or free-cash-flow models on blank paper until every step feels natural. Pair the calculations with a short explanation so you can defend your assumptions in the exam.
Memorization is just the starting point. You also need to know when a formula applies, what assumptions sit behind it, and how to interpret the output. Maintain a condensed formula sheet but write one real-world use case beside each expression.
You may register for the next available window after results are released, but most candidates plan at least six months to relearn FRA, equity, and quantitative tools at their deeper Level II depth.
Absolutely. Ethics remains the largest single topic weight and serves as a decisive tiebreaker if your total score sits on the pass line. Revisit the Standards every two weeks and work vignette-style ethics questions to stay fluent.
Start with single-topic item sets, then move to mixed sets, and finish with full mock exams during the final six weeks. After every session, log each miss, classify it (concept, process, careless), and redo the vignette until you can teach the answer.