Most Frequently Asked Questions About the Level II CAIA Exam

So you passed the Level I CAIA® exam—the first milestone on the way to becoming a Chartered Alternative Investment Analyst℠. You’ve become part of an elite group, but now comes Level II. This article will answer the most common questions we receive from people preparing to take the next step toward becoming a CAIA Charterholder.

What Is the Difference Between the Level II CAIA Exam and the Level I Exam?

The Level I CAIA exam tests your understanding of the tools used to analyze alternative investments. Level II tests your ability to apply these tools to analyze and invest in alternative investments. Like Level I, Level II has a multiple-choice portion; however, Level II also has essay questions, called the constructed response portion.

What Is the Level II CAIA Exam Date?

The Level II exam is offered twice a year in March and September in a period called a “window.”

2026 CAIA Level II Exam Dates

What Is the Level II CAIA Exam Format?

The Level II CAIA exam is a 4-hour exam composed of 100 multiple-choice questions and three sets of constructed-response (essay-type) questions, all of which measure your knowledge of the CAIA Level II curriculum. The multiple-choice questions count for 70% of your score, and the constructed response questions count for 30%.

You have two hours to complete the multiple-choice question section and two hours to complete the constructed-response section with an optional 30 minute break in between each section.

What Are the Level II CAIA Exam Subjects?

The world of alternative investments is fluid, and new regulations or even deregulation are common. So, just like CAIA Level I, the topics of the CAIA Level II exam can change from year to year. Below are the current Level II CAIA exam topics:

• Professional Standards and Ethics

• Institutional Asset Owners

• Asset Allocation

• Risk and Risk Management

• Methods and Models

• Accessing Alternative Investments

• Due Diligence and Selecting Managers

• Volatility and Complex Strategies

• Universal Investment Considerations

• Emerging Topics

What Are the Level II CAIA Exam Topic Weights?

The weights of the Level II exam topics can also change from year to year. These are the topic weights within the multiple-choice portion of the Level II exam:

• Professional Standards and Ethics: 0%

• Institutional Asset Owners: 8–12%

• Asset Allocation: 8–12%

• Risk and Risk Management: 8–12%

• Methods and Models: 8–12%

• Accessing Alternative Investments: 8–12%

• Due Diligence and Selecting Managers: 8–12%

• Volatility and Complex Strategies: 8–12%

• Universal Investment Considerations: 8–12%

• Emerging Topics: 0%

For the constructed response section of the Level II exam, the weights are as follows:

• Professional Standards and Ethics: 10%

• Institutional Asset Owners: 0–10%

• Asset Allocation: 0–10%

• Risk and Risk Management: 0–10%

• Methods and Models: 0–10%

• Accessing Alternative Investments: 0–10%

• Due Diligence and Selecting Managers: 0–10%

• Volatility and Complex Strategies: 0–10%

• Universal Investment Considerations: 0–10%

• Emerging Topics: 10%

How Much Time Does It Take to Study for the Level II CAIA Exam?

CAIA Association reports that the average Level II candidate studies for at least 250 hours. It’s important that you do your studying over a period of several months, and that is why registration opens five months before the exam window opens. Cramming in the last few weeks for the exam won’t work.

The topics you’re being tested on require a type of knowledge that can only be gained over a structured, careful course of study—not last-minute, frantic reviews of core materials. In addition, you need time to practice for the constructed response questions because, although they are “essay questions,” they are not like those in college exams.

How Hard Is the Level II CAIA Exam?

The Level II exam is intense, and the constructed response portion only adds to the difficulty. You will need every bit of your 250-300 hours or more to prepare…and practice is key. Some self-directed and motivated candidates are able to pass the Level II CAIA exam using a course of self-study, but many use a CAIA Level II exam prep package to stay organized and ensure they are prepared for exam day.

Explore Fellow Candidate's Views On CAIA Level II Exam Difficulty.

What Is the Level II CAIA Exam Pass Rate?

The pass rate for the Level II CAIA exam is on the decline. It was as high as 70% a few years ago, but the latest report from is 59%. Although more people pass than fail the CAIA Level II exam, it’s not by much. You can greatly improve your odds of success by learning from other candidates’ experiences and avoiding common CAIA study mistakes.

How Much Does the Level II CAIA Exam Cost?

It costs $995 - $1,395 to register for the Level II exam depending on when you register. If you want to retake the exam, the fee is $795.

Are You Ready For the Next Steps?

Check out our CAIA exam prep study packages for all learning styles now. Or, learn more about why you should pursue the CAIA charter here.