How to Pass the CFA Exam Level 2
By an eHow Contributor
The CFA Level One exam’s focus is on predominately on investment and financial concepts. The CFA Level Two exam focuses on the application of those concepts. Only two-thirds of the candidates who take this very difficult exam pass it. That is why it is critically important to study and be well prepared.
1. Know how the test is set up. The CFA Level Two exam is composed of 120 questions and is administered in two separate 3-hour sessions. You are given ten hypothetical cases in which after each case you will be asked a series of multiple-choice questions.
2. Make a list of the exam topics. They are: Ethical and Professional Standards, Investment Tools, Asset Valuation and Portfolio Management.
3. Obtain a Candidate Book of Knowledge. This book contains the Ethical and Professional Standards contained in the exam. This section accounts for 5-15 percent of your overall exam score.
4. Study Investment Tools. Accounting for 35-45 percent of your overall exam score, this section contains the following subjects: Quantitative Analysis, Economics, Financial Statement Analysis and Corporate Finance.
5. Learn Asset Valuation. This section accounts for 35-45 percent or your exam score and includes Equity Investments, Fixed Income Investments and Derivatives.
6. Gain knowledge about Portfolio Management. Study effective portfolio management concepts and techniques. This section will account for 5-15 percent of your exam score.
CFA Exam Prep: Level 2 Economics for Valuation