Man sitting for Level II CFA Exam

Posted by: Kaplan Schweser
Updated: February 7, 2019

You’ve reached your first milestone on the way to becoming a CFA® charterholder by passing the Level I exam! So next up is Level II. As a recognized leader in CFA Program exam prep, Kaplan Schweser fields a wide variety of questions from candidates preparing for the Level II exam. Here, we compiled those questions (and answers) into one simple place for Level II candidates to get the information they need.

What is the difference between Level II of the CFA® Program exam and Level I?

Level I tests your understanding of the basics of investment valuation. Level II begins to test your ability to put that understanding to practical use. You will be presented with real life scenarios and be asked to put your knowledge of investment management and portfolio concepts to the test.

When is Level II of the CFA® Program exam offered?

Unlike the Level I of the CFA Program exam, the Level II exam is offered just once per year. The 2019 Level II exam will be offered on different dates in June, depending on which region you live in. We’ve broken down all of the 2019 testing dates in this article.

What is the format of Level II of the CFA® Program exam?

Level II of the CFA Program exam is a multiple-choice exam, like Level I. However, instead of 240 multiple-choice questions, the Level II exam has 120. These 120 questions are divided into 20 item sets, consisting of 6 questions each. You will be tested on 10 of the item sets in the morning, and 10 in the afternoon. For each item set, you will be provided information, and the 6 questions will require you to use the provided information to solve them.

What subjects are tested on Level II?

When sitting for Level II of the CFA Program exam, you will be tested on the following topics:

  • Ethical and Professional Standards
  • Quantitative Methods
  • Economics
  • Financial Reporting and Analysis
  • Corporate Finance
  • Equity Valuation
  • Fixed Income
  • Derivatives
  • Alternative Investments
  • Portfolio Management

Considering the CFA charter? Before you choose your CFA Program exam date, download this free Before You Decide to Sit for the CFA Program Exam eBook.

What are the Level II topic weights?

The Level II exam topic weights are subject to change on a year-to-year basis, at the discretion of CFA Institute. For Level II of the CFA Program exam in 2017, topics were weighted as follows:

TopicExam Weight
Ethical and Professional Standards10 - 15%
Quantitative Methods5 - 10%
Economics5 - 10%
Financial Reporting and Analysis10 - 15%
Corporate Finance5 - 10%
Equity Valuation10 - 15%
Fixed Income10 - 15%
Derivatives5 - 10%
Alternative Investments5 - 10%
Portfolio Management5 - 15%

How much time do I need to dedicate to studying for Level II

In the CFA Institute June 2017 CFA Candidate Survey, respondents reported spending an average of 328 hours preparing for Level II of the CFA Program exam. Typically, candidates will spread that time over a 6-month period, which averages out to about 12.5 hours per week. However, some candidates do not begin studying as early and compress their study time into a shorter window. How intense your study schedule is depends greatly on how early you begin preparing.

How hard is the exam?

Don’t let anyone tell you any level of the CFA exam is easy. They all require focused study and preparation. That’s because the CFA charter is an exclusive designation, designed to truly demonstrates mastery. The pass rate for the June 2017 Level II CFA Program exam was 47%. According to CFA Institute, only 20% of candidates who begin the program actually earn the charter. Preparation is critical to reaching the finish line. We’ve outlined other candidate experiences and some of the common pitfalls people encounter to help you along the way.

How much does it cost to sit for Level II of the CFA® Program exam?

The cost to sit for the exam varies depending on when you register. CFA Institute has three registration windows for each exam offering: early, standard, and late. The early registration fee is $650. Registering by the standard deadline will cost $950; late registration comes at a cost of $1,380. We suggest registering early for two reasons. First, you will save anywhere from $300 to $730, which you could invest in a CFA Program exam prep course. Second, the earlier you commit to sitting for the exam, the sooner you can begin preparing.

We hope we’ve answered some of your questions about sitting for Level II of the CFA Program exam. If not, you’re always welcome to reach out to our Student Support team, or get additional information in our blog. When you’re ready to start formulating your study plan, be sure to check our Level II manager Dr. B.J. Tolia’s video “How to Pass Level II of the CFA Program Exam.”

Before You Decide to Sit for the CFA Exam

Free eBook: Before You Decide to Sit for the CFA® Program Exam

CFA Fundamentals eBook

Free eBook: CFA® Program Fundamentals, 2nd Edition

Ready to Begin Studying?

Be a Guest Writer

Have your voice heard as a published guest writer in our blog.