Planning for Your CFA Level 2 Exam
If you’re reading this article, chances are you’ve either passed Level 1 (congratulations!), or you’re doing your due diligence on just how intense this whole CFA thing really is. [FYI: it’s intense].
So let’s get the no brainers out of the way. Is it hard? Yes. Is it harder than Level 1? Yes. Is it even possible to pass? Absolutely. Here’s what you need to know to develop a CFA Level 2 study plan:
CFA Level 1 vs Level 2 Content
Level 1 focuses on basic knowledge and comprehension of tools and concepts of investment valuation. Level 2 dives deeper into investment management and portfolio concepts, and how to apply those concepts to real-life scenarios.
Exam Structure
When comparing the CFA Level 1 exam vs. Level 2, you’ll notice that both are similarly structured, with a slew of multiple choice questions. However, the questions are lumped into “item sets.” Each item set consists of a case statement followed by six multiple choice questions. There are a total of 20 item sets: 10 in the morning session, 10 in the afternoon. Essentially you read through a narrative chock full of detail (some necessary, some not), and then answer six multiple choice questions on how you would apply what you have studied to the scenario you’ve just read. Rinse and repeat.
Curriculum & Weighting
There are 10 topics grouped into 4 areas for the Level 2 exam: Ethical and Professional Standards (2 item sets), Investment Tools (612 item sets), Asset Classes (715 item sets), and Portfolio Management and Wealth Planning (13 item sets).
CFA Level 2 Study Plan – How to Pass
There’s no secret sauce here or magic formula. You simply have to know your stuff. That being said, whatever knowledge you gained in studying for the Level 1 exam will be put to the test by digging deeper into your brain for Level 2. Make sure you thoroughly understand your content and can apply concepts to pass Level 2. The best way to succeed on Level 2? Spend time practicing and taking sample tests, and consistently review the areas you are weak on throughout your preparation for your CFA Level 2.
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