What is the difference between CFA Level 1 & Level 2 Examination?
The basic difference between CFA Level 1 and Level 2 exams is the amount of depth and detail included in the CFA Level 2 exam. Though both the levels have almost similar topics in the curriculum, CFA Level 2 is certainly harder than the CFA Level 1 exam.
CFA Level 1 tests your comprehension of the basics of investment valuation. CFA Level 2 tests your abilities to put that understanding into practical usage.
What is the format for the CFA Level 2 Exam?
Similar to CFA Level 1 exam, CFA Level 2 is also a multiple-choice exam. However, CFA Level 2 exam comprises 120 questions as opposed to 240 questions in CFA Level 1 exam. These 120 questions are further categorized into 20 item sets having 6 questions each.
Every item set is supplied with some information based on which you have to solve the given 6 questions. Their exam will be conducted in two phases: morning and afternoon phases having 10 item sets each. Following are the details for both the phases of the exam:
|Phase||Time Duration||No. of Questions||Topics|
|Morning||2 Hours and 12 Minutes||44 Multiple Choice Questions||
|Afternoon||2 Hours and 12 Minutes||44 Multiple Choice Questions||
What are the subjects on which the CFA Level 2 exam is based?
Following are the topics on basis of which the CFA Level 2 exam is conducted:
- Quantitative Methods
- Ethical and Professional Standards
- Corporate Finance
- Financial Reporting and Analysis
- Equity Investments
- Fixed Income
- Alternative Investments
- Portfolio Management and Wealth Planning
How is the percentage distributed for different subjects of the CFA Level 2 exam?
The CFA Level 2 exam topic weights change yearly at the discretion of the CFA Institute. As of now, this is how the percentage for the topics is distributed:
|Quantitative Methods||5 – 10%|
|Ethical and Professional Standards||10–15%|
|Economics||5 – 10%|
|Corporate Finance||5 – 10%|
|Financial Reporting and Analysis||10 – 15%|
|Equity Investments||10 – 15%|
|Derivatives||5 – 10%|
|Fixed Income||10 – 15%|
|Alternative Investments||5 – 10%|
|Portfolio Management and Wealth Planning||5 – 15%|
How much does it cost to appear in the CFA Level 2 exam?
The cost for the CFA Level 2 examination is variable and depends on how early you register for the same. CFA Institute offers an early registration window whose fee to appear in the exam is $900. However, if you miss the early deadline, you can register by the standard deadline, which costs a fee of $1,200.
What is the pass percentage for the CFA Level 2 exam?
The pass percentage rate for the CFA exams alter each year. The current or the latest CFA pass rates for CFA Level 2 exam as of February 2022 is 43%.
What is the mode of the CFA Level 2 exam 2022?
CFA Level 2 is a computer-based exam with multiple-choice questions.
Is it okay to self-study for the CFA Level 2 exam?
Self study definitely is an option to prepare for the CFA Level 2 exam. However, considering the hard level of the examination, it is extremely important to maintain a good study discipline to stay consistent in your preparations and obtain the desired result.
If you are not so disciplined, it is better to opt for a preparation course which is a better alternative to self-studying as it reduces plenty of your time with the right course material and helps you prepare with optimal methods and routines.
What should be my study plan for the CFA level 2 exam?
A proper study plan for the CFA Level 2 exam is as follows:
- Begin with subjects of derivatives, fixed income, or alternative investments to gain basic knowledge of the subject.
- Next, study the core subjects which include Corporate Finance, Financial Reporting & Analysis, and Equities.
- Once you are done with the above-given subjects, move to the subjects of Quantitative Techniques, Portfolio Management & Economics, and take the subject of Ethics at the very last.
Check out our CFA Level 2 page for a detailed study plan.