In case you're reading through this post, then there is an extremely good possibility that you have already cleared the CFA Level I examination and also have started the preparation of yours for the CFA Level II. While the Level I examination focused on the fundamental information as well as an understanding of concepts and tools of buy valuation, Level II is about the application of the principles. Level II goes much more in-depth into expense management as well as portfolio principles and tests the power of yours to use these ideas in real-life scenarios. CFA level 2 study material is going to help you comprehend the nuances of the CFA Level II examination. The difficulty of the topics remains pretty much the same, as we said before. Of course, the question of complexity is a subject criterion, but you can definitely accept that IT is both relevant and difficult with its current weight of 10-15% and over 500 pages in your CFA program. You get a lot of additional time to review equity and other critical issues, that is, with our free CFA examination planner along with Fixed salary, Ethics, FRA.
What's the CFA Exam?
The Chartered Financial Analyst (CFA) expert designation is actually provided by the CFA Institute - a worldwide connection of funding professionals - to individuals that effectively complete & pass the examination of its. The examination is actually made up of a set of 3 exams that become progressively harder plus more complicated from Level I to Level III. Each examination has a diverse range of principles plus questions the pupil should answer. The tests test pupils on analysis, knowledge, and comprehension of a series of various subjects as accounting, money management, ethics, economics, and security evaluation.
Exams are available every June at centers that are various across the globe. Candidates have to meet a minimum score to pass each degree. Individuals who do not pass are supplied with info compared to other people who did not pass. They're competent to take the exam once again.
Examination Structure
Like Level I, Level II also contains several choice questions. Nevertheless, the questions are actually grouped into mini cases called merchandise sets. Every product set comprises of a situation when declaration followed by 4 or perhaps 6 several choice questions. You will find a total of twenty-one thing sets - ten in the early morning session and eleven in the afternoon session. Candidates have to make use of the info provided to each object set in the situation declaration to reply to the questions.
Examination Details
Anybody who wants to finish the examination should have a bachelor's degree or maybe equivalent training and should have passed the CFA Level I examination. Test takers should also have 3 years' worth of qualifying hiking experience before taking the exam. Candidates are provided 6 hours to finish the exam. The price to enroll varies yearly - as does the passing score - as well as will depend on if they enroll. Passing rates, which had been established as of June 2012, were set at 42 %. Exam results usually are supplied to applicants in sixty days.
Examination Curriculum
For the Level I exam, the subject emphasis is actually on investment equipment, with fairly less focus on advantage valuation as well as portfolio management. For Level II, although, the subject target shifts more toward asset classes, though the expense equipment continues to be weighted quite substantial. In terms of learning, the Level II examination focuses on the application as well as analysis of ideas mastered in Level I.
The curriculum consists of ten subjects that are grouped into 4 areas:
- Professional and ethical Standards
- Investment Tools
- Advantage Classes
- Portfolio Management and Wealth Planning
Ethics as well as Professional Standards This also covers the code of ethics, professional standards, and the global investment performance requirements. Ethics is one area which is also significant in every one of the 3 levels. The questions will likely be directed at the application of the 7 standards in commercial scenarios. Other critical topics are actually the gentle bucks as well as Research Objectivity Standards (ROS).
CFA Level II exam weightage
|
Subject |
Weight |
Duration |
|
Ethical and Professional Std. |
10% |
4 Hours |
|
Quantitative Methods |
5-10 % |
12 Hours |
|
Economics |
5-10 |
12 Hours |
|
FSA |
15-25 % |
24 Hours |
|
Corporate finance |
5-15 % |
16 Hours |
|
Equity Investments |
20-30 % |
16 Hours |
|
Fixed Income |
5-15 % |
12 Hours |
|
Derivatives |
5-15 % |
12 Hours |
|
Alternative Investments |
5-15 % |
12 Hours |
|
Portfolio Management |
5-15 % |
8 Hours |
|
Doubt Clearning Sessions |
0 |
8 Hours |
|
Full Lenght Mock Test |
00 |
24 Hours |
|
Mid Term and End Term tests |
00 |
10 Hours |
The recommended preparation time is 250 hours
Quantitative Methods
You are able to anticipate approximately one to 2 things sets from the quantitative area. The case declaration will probably current info regression, and get one to assess as well as interpret the information. You might actually be directed to compute several key metrics based on the information provided.
Economics
Like the subject earlier, economics is additionally a tiny segment of Level II. You are able to count on one thing set for that subject. You have to have a great conceptual awareness of economics, as most of these principles could be tested together with various other things. One concept that is crucial is actually international exchange and you're likely to end up testing on the application of the principles of its.
Financial Analysis and Reporting Financial reporting as well as analysis stands for a sizable component of the examination. You are able to anticipate approximately 4 to 5 things sets from this particular section. The key ideas are actually accounting for inventories, accounting for long-lived assets, accounting for leases, inter-corporate investments, accounting for acquisitions, adjustable interest entities (VIEs), and economic reporting quality. You're much more apt to be asked item set concerns depending on a blend of the principles. You have to master the procedures as well as practice and concepts the program of theirs completely. To understand the nuances as well as differences in the U.S and IFRS. GAAP is crucial.
Business Finance
Business finance is crucial but easy to deal with the subject. The principles in business finance are connected with the financial reporting as well as equity sections. Thus, the questions might be coupled with content from the various other sections. The key ideas consist of capital budgeting, capital system, dividend and then repurchase policy issues, corporate governance as well as acquisitions and merger.
.
Portfolio Management
You are able to count on one or perhaps 2 things set concerns from portfolio management. The content within this area is great, and this can be a good idea to keep this department for the end. Keep in mind that the portfolio management material is going to get deeper in the Level III exam, therefore it is a wise idea to have an overall comprehension of principles with these. You'll be tested on the profile concept, promote effectiveness, and asset pricing principles.
Equity Investments
Equity is a crucial segment for financial analysts and also you are able to anticipate approximately 4 to 5 things set concerns from equities. There's a great deal of content on equity analysis as well as valuation strategies. Remember that the equity is heavy on formulas and also you might be asked to do formula-based calculations & interpretations.
Fixed Income
Fixed revenue is a little, but a critical part of the examination which is very like the company finance area. Because of the latest financial problem, this particular area is now a lot more vital. You are able to count on one or perhaps 2 thing sets on this particular subject. Just like equity investments, fixed revenue is heavy on formulas and even several of the ideas are truly complicated. Key ideas consist of recognition analysis, term system, bonds, mortgage-backed securities (MBSs), and the valuation of theirs.
Derivatives
This's a far more demanding part and also you are able to anticipate no less than 2 things set concerns from derivatives. The content covers futures and forwards, alternatives, and swaps. In just a few derivatives, you need to be acquainted with currency forwards, interest rate futures as well as advanced amount agreements. In choices, you have to realize the choices techniques and also the styles for pricing feature contracts. Inside swaps, you ought to be in a position to understand a swap transaction in addition to figure out the money flows to the parties involved.
Alternate Investments
This particular Part covers advantage classes apart from fixed income as well as equity. The 3 asset classes, that are a part of the CFA curriculum, are actually real estate, hedge funds, and private equity. There'll be one or perhaps 2 thing sets thoughts from this particular section. This's a somewhat simple part and could enable you to get that extra score without getting into complicated things.
Weights of CFA level 2
Since the evaluation is linear, the weightage of CFA level 2 exams can be assumed to build on level 1. This time the 4 wide contents areas in Level 1 are significantly less focused on financial instruments.The questions are probably more detailed on the same subjects. The format of questions is no longer stand-alone, but something known as the item sets.
Change in the topic of CFA Level 2 in weight
In level 2 weights for 2019-2020, there are no improvements.
There has been a small increase in portfolio management weighting during 2018-2019 in the emphasis on Financial Reporting & Analysis (FRA), Fixed Income & Equity Investment.
The update of Level 2 overall reduced the variability of subject weight across the 10 subjects and reduced the range by a maximum of 5% per issue. The 10 topics of CFA level 2 exams can be equally checked at 10 percent per weight. These changes may have been made to prevent candidates from concentrating solely on the five (formerly) main Level 2 (FRA, corporate finance, equity, fixed income, and derivatives) subjects.ct weight across the 10 subjects and reduced the range by a maximum of 5% per issue. The 10 topics of CFA level 2 exams can be equally checked at 10 percent per weight. These changes may have been made to prevent candidates from concentrating solely on the five (formerly) main Level 2 (FRA, corporate finance, equity, fixed income, and derivatives) subjects.
Comments
Please login to comment