Most Frequently Asked Questions About Level II of the CFA® Exam

Most Frequently Asked Questions About Level II of the CFA® Exam

Man sitting for Level II CFA Exam

Posted by: Kaplan Schweser
Updated: September 24, 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 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® 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® exam offered?

Unlike the Level I of the CFA exam, the Level II exam is offered just once per year in June. We’ve broken down all of the 2020 testing dates in this article.

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

Level II of the CFA 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 exam, you will be tested on the following topics:

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

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 exam in 2020, the topics are weighted as follows:

Topic Exam Weight
Ethical and Professional Standards 10–15%
Quantitative Methods 5 – 10%
Economics 5 – 10%
Financial Reporting and Analysis 10 – 15%
Corporate Finance 5 – 10%
Equity Investments 10 – 15%
Fixed Income 10 – 15%
Derivatives 5 – 10%
Alternative Investments 5 – 10%
Portfolio Management and Wealth Planning 5 – 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 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.

What is the Level II CFA exam pass rate?

The pass rate for the June 2019 Level II CFA exam was 44%. 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® 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 exam prep course. Second, the earlier you commit to sitting for the exam, the sooner you can begin preparing.