The CFA Level 2 exam is the second of 3 CFA exams that can help you obtain the CFA title. – It is the exam that usually separates the men from the children as they say, it’s very challenging and a majority of those that passed level 1 end up failing this one.
CFA Level 2 Exam Format
The CFA level 2 exam consists of a morning and an afternoon session. In each 3 hour session, candidates must answer 60 multiple choice questions, there are 3 possible answers for each question.The main difference with the CFA Level 1 is that questions are all organized into sets of 6 questions. Basically, you read a situation and then have 6 questions about this problem. I personally find these much more challenging because reading them does take a lot of time. Also, if you do not understand the set correctly, you can be in trouble for most if not all of the 6 questions.
CFA Level 2 Exam Dates
The CFA Level 2 exam is only given once per year, on the first Saturday of June..
CFA Level 2 Material
The CFA level 2 material digs much deeper into making sure that you understand the material. Where the CFA level 1 exam would have asked you to calculate a specific ratio such as a liquidity ratio, the CFA level 2 would figure out ways to not only make you calculate the ratio but also make sure that you understand what it means. There is much more of an emphasis on understanding what you are doing. I also think that the CFA level 2 material requires an extensive amount of practice as the same types of questions come up over and over but with variations that make sure the candidates understand very well.
The main sections being tested in the CFA level 2 exam are:
-Accounting (Financial Reporting and analysis (15-25%)
-Asset and debt valuation and understanding (35-75%)