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Before Sit for the CFA Exam eBook
Get advice from CFA Charterholders for a successful exam day.Becoming a CFA Charterholder
February 13, 2025
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You’ve reached your first milestone on the way to becoming a CFA® charterholder by passing the CFA Level I exam. So, next up is Level II. As a recognized leader in CFA exam prep, Kaplan Schweser fields a wide variety of questions from candidates preparing for the CFA Level II exam. Here, we compiled those questions (and answers) into one simple place for Level II candidates to get the information they need.
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.
Candidates should expect the CFA Level II exam to test their curriculum knowledge in more depth than Level I. Candidates can count on facing new question types called vignettes and will have 4 hours and 24 minutes to finish the exam
Level II of the CFA exam will be offered three times a year. To learn the dates, read this article, which breaks the changes to the Level II exam dates and provides information on Levels II and III also.
You can only postpone your CFA exam after you’ve registered in specific circumstances, mostly related to medical reasons. It’s easier to withdraw, but unless you withdraw within three days of registering, you will have to pay the registration fees again and re-register.
Level II of the CFA exam is a multiple-choice exam, like Level I. These questions are divided into question sets, and you will be tested on half of the item sets in the morning and a half in the afternoon. For each item set, you will be provided information, and the questions will require you to use the information provided to solve them.
When sitting for Level II of the CFA exam, you will be tested on the following topics:
Quantitative Methods
Economics
Financial Reporting and Analysis
Corporate Issuers
Equity Valuation
Fixed Income
Derivatives
Alternative Investments
Portfolio Management
Ethical and Professional Standards
The Level II exam topic weights are subject to change yearly at the discretion of CFA Institute. Currently, for Level II of the CFA exam, the syllabus topics are weighted as follows:
Level II Topic | Level II Exam Weight |
|---|---|
Quantitative Methods | 5–10% |
Economics | 5–10% |
Financial Reporting and Analysis | 10–15% |
Corporate Issuers | 5–10% |
Equity Valuation | 10–15% |
Fixed Income | 10–15% |
Derivatives | 5–10% |
Alternative Investments | 5–10% |
Portfolio Management | 10–15% |
Ethical and Professional Standards | 10–15% |
The general consensus is that you should dedicate a minimum of 300 hours to studying for Level II. In a recent Kaplan Schweser CFA Program Survey, we saw the number of hours spent preparing for exams increase after Level I. 73% of those who most recently passed the CFA Level II exam said they spent more than 300 hours preparing.
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 depends on how early you begin preparing.
Level II candidates should try to score 70% or higher when taking mock exams. If your score remains below 70%, analyze your performance in each topic to pinpoint where adjustments are needed, and enhance your study plan accordingly.
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 demonstrate mastery.
Answer these five questions to test your readiness for the Level II Exam
CFA exam grading is done by machines and charterholders. CFA Institute then uses a methodology to determine a minimum passing score that is applied to each exam. Our article on how the CFA exam is graded has all the details.
The 10-year average pass rate for the Level II CFA Exam is 45% but some recent CFA pass rates have been lower. 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.
The Level II CFA exam is not free and there are multiple components that determine the total cost of the Level II exam such as:
Registration costs
Depending on when you register for the Level II exam and how much you pay for CFA prep, expect to pay around $1,000 - 2,500 USD for the Level II exam, including prep materials.
We suggest registering during the early period for two reasons. First, you will save $300, which you can put toward a CFA exam prep course. Second, the earlier you commit to sitting for the exam, the sooner you can begin preparing.
Practical Skill Modules started for CFA Level II Candidates in May 2024. All Level II CFA candidates need to complete an additional education requirement called Practical Skill Modules (PSMs).
They need to be finished before exam results are released and should take about 10-15 hours to complete. PSMs are a requirement to receive CFA Level II exam results and are available to Level II candidates in CFAI's Learning Ecosystem.
Practical Skill Modules are an additional educational requirement you need to complete to receive your CFA Level I exam results. PSM's take about 10-15 hours to complete and must be finished before your exam results are released. To start a PSM, login to CFAI's Learning Ecosystem and navigate to the Practical Skills Module content.
If you have additional questions, feel free to reach out to the Kaplan Schweser Student Support team for the answers you need to take this next step in your career.
Looking for more guidance on how to prepare for Level II of the CFA® exam? Enroll in one of our CFA Level II Premium study packages to receive expert instruction, CFA Program study materials, and more. Give yourself the best chance to prepare, practice, and perform on the CFA exam.
Our representatives are ready to guide you in choosing the right education package for your exam-day success. Schedule a time to talk to one of our financial education experts and have all your questions answered.
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