The Chartered Financial Analyst (CFA) program is a globally recognized credential in the finance industry. The CFA Level II exam is the second level in the CFA program, and passing it is a significant milestone towards becoming a CFA charterholder. The CFA Level II exam is designed to test a candidate's knowledge of advanced investment analysis and application of ethical and professional standards. In this article, we will discuss the exam objectives, exam details, and related books to help candidates prepare and pass the CFA Level II exam.
Exam Objectives:
The CFA Level II exam has two main objectives:
- To test a candidate's ability to apply advanced investment analysis and valuation concepts
- To test a candidate's knowledge and application of ethical and professional standards
The exam consists of 120 multiple-choice questions, divided into two sessions of 3 hours each. The exam covers the following topics:
- Financial Reporting and Analysis
- Corporate Finance
- Equity Investments
- Fixed Income
- Derivatives
- Alternative Investments
- Economics
- Quantitative Methods
Exam Details:
The CFA Level II exam is administered in June of each year. The exam is computer-based and is offered at testing centers worldwide. The cost of the exam varies depending on when the candidate registers. The exam fee is higher for late registration.
The passing score for the CFA Level II exam is not predefined. The exam is scored on a relative basis, and the passing score is determined by the candidate's performance relative to other candidates. The CFA Institute releases the exam results within 60 days of the exam date.
Who Should Take the Exam?
The CFA Level II exam is designed for finance professionals who want to advance their careers in investment analysis, portfolio management, or equity research. Candidates who have passed the CFA Level I exam can take the CFA Level II exam. To become a CFA charterholder, candidates must pass all three levels of the CFA program, have four years of professional work experience, and agree to abide by the CFA Institute's Code of Ethics and Standards of Professional Conduct.
Related Books:
Preparing for the CFA Level II exam requires extensive study and practice. The following books are recommended for candidates preparing for the CFA Level II exam:
- Level II CFA: SchweserNotes and SchweserPro Qbank
- CFA Institute Investment Series: Financial Statement Analysis and Security Valuation
- CFA Institute Investment Series: Equity Asset Valuation
- CFA Institute Investment Series: Fixed Income Analysis for the Chartered Financial Analyst Program
- CFA Institute Investment Series: Derivatives and Alternative Investments
- CFA Institute Investment Series: Quantitative Investment Analysis
In conclusion, the CFA Level II exam is a rigorous exam designed to test a candidate's knowledge of advanced investment analysis and ethical and professional standards. To pass the exam, candidates must have a thorough understanding of the exam topics, be familiar with the exam format, and practice extensively using relevant study materials. The CFA Level II exam is a significant step towards becoming a CFA charterholder, which is a highly regarded credential in the finance industry.