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Exam Information
Official specifications published by CFA Institute
Exam Format
264 min
88
Minimum Passing Score (MPS) varies by exam
Professional
Registration
Prometric
CFA-LEVEL-2 Exam Topics and Domains
CFA-LEVEL-2 is organized into 10 weighted domains.
1
Ethical and Professional Standards
10-15%%
Code of Ethics and Standards of Professional Conduct
Code of EthicsStandards of Professional Conduct I-VIIStandard I(E): Competence (NEW 2025)
- Apply the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity
- Distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards
- Recommend practices and procedures designed to prevent violations of the Code and Standards
Application of the Code and Standards: Level II
Soft Dollar StandardsResearch Standards
- Evaluate practices, policies, and conduct relative to the CFA Institute Code of Ethics and Standards of Professional Conduct
- Explain how the practices, policies, or conduct does or does not violate the CFA Institute Code of Ethics and Standards of Professional Conduct
2
Quantitative Methods
5-10%%
Linear Regression and Time-Series Analysis
Multiple Linear RegressionTime-Series Analysis
- Formulate a multiple regression equation to describe the relation between a dependent variable and several independent variables
- Determine the statistical significance of a regression model and its coefficients
- Distinguish between and interpret the different forms of time-series models
Machine Learning and Big Data
Machine Learning TechniquesBig Data Projects
- Describe supervised and unsupervised machine learning algorithms and determine the problems for which they are best suited
- Describe neural networks, deep learning nets, and reinforcement learning
3
Economics
5-10%%
Currency Exchange Rates and Economic Growth
Foreign Exchange MarketsEconomic Growth
- Calculate and interpret the bid-offer spread on a spot or forward foreign currency quotation
- Describe the carry trade and its relation to uncovered interest rate parity
- Compare and contrast theories of economic growth
4
Financial Statement Analysis
10-15%%
Advanced Financial Statement Analysis
Inventory AnalysisLong-Lived AssetsIncome TaxesPension Liabilities
- Compare and contrast IFRS and US GAAP standards for inventory, long-lived assets, income taxes, and employee compensation
- Analyze the effects of accounting methods and estimates on financial statements and ratios
- Evaluate company financial health and identify risks through financial statement analysis
5
Corporate Issuers
5-10%%
Corporate Governance and Capital Allocation
Corporate GovernanceCapital Allocation and Financing
- Describe corporate governance and stakeholder management frameworks
- Evaluate capital allocation and financing decisions
- Analyze working capital management strategies
6
Equity Investments
10-15%%
Industry and Company Analysis
Industry AnalysisEquity Valuation Models
- Analyze industries and companies using strategic frameworks
- Apply equity valuation models to determine intrinsic value
- Compare and contrast different valuation approaches
7
Fixed Income
10-15%%
Bond Valuation and Risk
Bond ValuationInterest Rate RiskBinomial Tree Models
- Calculate and interpret bond yields and prices
- Explain the factors that affect bond prices and yields
- Calculate and interpret duration, modified duration, effective duration, and convexity
- Value bonds with embedded options using binomial trees
8
Derivatives
5-10%%
Derivatives Pricing and Valuation
Forward and Futures PricingOptions ValuationSwaps
- Calculate and interpret prices and values of forward contracts, futures, and swaps
- Explain how options are valued using binomial and Black-Scholes-Merton models
- Calculate and interpret option Greeks
9
Alternative Investments
5-10%%
Alternative Investment Analysis
Hedge Funds and Private EquityReal Estate ValuationCommodities and Infrastructure
- Describe characteristics of alternative investments and their role in portfolio diversification
- Explain valuation methodologies for real estate, private equity, and hedge funds
- Calculate and interpret returns for alternative investments
10
Portfolio Management
10-15%%
Portfolio Construction and Analysis
Risk and Return AnalysisCapital Asset Pricing ModelIndividual and Institutional Investors
- Calculate and interpret portfolio risk and return measures
- Explain the capital asset pricing model and its applications
- Formulate and justify investment policy statements for individual and institutional investors
How do I earn this certification?
Passing CFA-LEVEL-2 earns the CFA Charter (in progress) certification. It sits in the CFA Charter track.
Next Level Options
cfa-level-3 - CFA Level IIIAdvanced portfolio management exam with essay and item set questions
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How to study for this exam?
The most effective way to prepare for CFA-LEVEL-2 is by using the PlanetCert Simulator to practice questions and review detailed explanations.
What's changed on this exam?
Current Status
- ACTIVE
- Last content update: 2025
Updates
- Computer-Based Testing (CBT) Increased exam flexibility with four testing windows per year
- CFA Learning Ecosystem
- Practical Skills Modules (PSM)
Who should take this exam?
Exam Code: cfa-level-1; Exam Name: CFA Level I; Description: Must pass CFA Level I exam before attempting Level II
- Strong foundation in financial analysis
- Understanding of equity and fixed income securities
- Familiarity with financial statement analysis
- Basic knowledge of derivatives and portfolio management