If you are planning to take the CFA® Level 2 exam, then you are well on your way to becoming a Chartered Financial Analyst (CFA). The CFA designation is one of the most respected credentials in the investment management industry and passing the CFA Level 2 exam is a crucial step in obtaining it. The exam assesses a candidate's ability to apply investment analysis and portfolio management skills in real-life situations. This article will provide an overview of the CFA® Level 2 exam, including the exam objectives, exam details, who should take the exam, and related books that can help you prepare for it.
Exam Objectives:
The CFA® Level 2 exam aims to test a candidate's ability to apply investment analysis and portfolio management skills to analyze and value assets. The exam objectives include:
- Asset valuation
- Application of tools and concepts in asset valuation
- Analysis of financial reporting quality
- Analysis of corporate finance issues
- Analysis of equity investments
- Analysis of fixed income investments
- Analysis of derivative investments
- Portfolio management
Candidates will be expected to demonstrate a deep understanding of these topics and their practical applications. The exam consists of 120 multiple-choice questions, divided into two sessions of three hours each.
Exam Details:
The CFA® Level 2 exam is a computer-based test that is offered in testing centers around the world. The cost of the exam varies depending on when you register and where you are located. Typically, the exam fee ranges from $700 to $1,500. Candidates must achieve a minimum score of 360 out of 720 to pass the exam, and the pass rate is usually around 45%.
The exam is held once a year, usually in June, and candidates must register well in advance of the exam date. The format of the exam is multiple-choice questions, and each question has three answer choices. Candidates must select the best answer and indicate their choice on the computer screen.
Who should take the exam?
The CFA® Level 2 exam is designed for professionals who want to enhance their investment analysis and portfolio management skills. The exam is ideal for investment managers, financial analysts, portfolio managers, and other professionals who are involved in investment decision-making. It is also suitable for students who want to build a career in finance.
Before taking the CFA® Level 2 exam, candidates must have successfully completed the CFA® Level 1 exam. In addition, candidates must have a bachelor's degree or equivalent, or four years of professional work experience.
Related Books:
Preparing for the CFA® Level 2 exam requires a significant amount of study and practice. There are numerous books and study materials available to help candidates prepare for the exam. Some of the most popular CFA Level 2 books include:
- "CFA Program Curriculum 2022 Level II Volumes 1-6" by CFA Institute
- "CFA Level II: Essential Formulas" by Kaplan Schweser
- "CFA Level II Exam Companion: The Fitch Learning / Wiley Study Guide to Getting the Most Out of the CFA Institute Curriculum" by Fitch Learning and Wiley
- "Wiley 11th Hour Guide for 2022
CFA Level II Exam" by Wiley
- "CFA Level II: Passcards" by BPP Learning Media
It is important to note that while these books can be helpful, they should not be the only source of study materials. Candidates should also review the CFA Institute's official curriculum and take practice exams to prepare for the exam. Additionally, candidates should consider attending review courses and workshops to enhance their knowledge and skills.
In conclusion, passing the CFA® Level 2 exam is a critical step in becoming a Chartered Financial Analyst. To prepare for the exam, candidates should have a deep understanding of investment analysis and portfolio management and study extensively using various resources, including the CFA Institute's official curriculum, practice exams, review courses, and study materials. With proper preparation, dedication, and hard work, candidates can achieve success and earn the CFA designation, which can open doors to a variety of exciting career opportunities in the investment management industry.