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CFA Level 2 Syllabus & Subjects 2024 - Pattern, Important Topics

CFA Level 2 Syllabus & Subjects 2024 - Pattern, Important Topics

Edited By Prashita Mishra | Updated on Dec 21, 2023 05:17 PM IST | #CFA Exam

The Chartered Financial Analyst Institute provides information about the CFA Level 2 syllabus on its official website. Candidates preparing for CFA Level 2 should check the detailed CFA Level 2 subject-wise syllabus before commencing their preparation. CFA level 2 syllabus 2024 provides complete details about the topics and sub-topics covered in the paper.

CFA Level 2 Syllabus & Subjects 2024 - Pattern, Important Topics
CFA Level 2 Syllabus & Subjects 2024 - Pattern, Important Topics

As per the syllabus of CFA level 2 exam 2024, there are 11 item sets for each session, a total of 22 for the full exam. The difficulty level will be on the higher side, compared to the CFA Level 1 exam. Read the complete article to have in depth knowledge about the CFA Level 2 syllabus pdf.

CFA Level 2 Syllabus

While formulating a study plan of CFA level 2 exam, candidates should first familiarize themselves with syllabus. This will help them not only in understanding the topics and sub-topics covered but also the weight that each topic holds.

The CFA level 2 syllabus is similar to the 10 core topics as in Level 1. However, the level of difficulty increases and the focus is more on the calculations and analytical aspects. The CFA Institute provides many learning resources to registered candidates which includes the official CFA Level 2 curriculum as well. Other study materials include study sessions for each level, custom study plans, mock exams and preparation tips. The Institute does not charge any additional CFA fee for providing CFA level 2 curriculum. Candidates only have to log in to their account and look for candidate resources section.

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Check out the core CFA level 2 curriculum topics along with the weightage that each topic holds and the purpose of including the topics.

CFA Level 2 Curriculum 2024 PDF

CFA Level 2 Subjects
Topics

Aim of Study

Weight %

Ethical and Professional Standards


  • Professional Standards of Practice
  • Ethical Practices
  • Asset Manager Code of Professional Conduct
  • Presentation of Performance Results (GIPS)
  • To understand about the ethics and related challenges to ethical behavior.

  • Know the about the role that ethics and professionalism play in the investment industry

10–15%

Financial Statement Analysis

  • Analysis of Financial Statements
  • Financial Reporting Quality
  • Analysis of Off-Balance-Sheet Assets and Liabilities
  • Analysis of Stock Compensation and Other Employee Benefits
  • Analysis of Intercorporate Investments and Business Combinations
  • Analysis of Global Operations
  • Building a Company Financial Model
  • Ratio and Financial Analysis
  • Financial Analysis of Banks and Insurance Companies
  • ESG considerations in Financial Statement Analysis
  • Aims to provide thorough explanation of financial reporting procedures

  • Understand the standards that govern the financial reporting disclosures

10-15%

Equity Investments

  • Types of Equity Securities and Markets
  • Fundamental Equity Analysis
  • Valuation of Individual Equity Securities
  • Equity Market Valuation
  • Equity Portfolio Management
  • ESG considerations in Equity Investments
  • Understand the workings of equity investments, security markets, and indexes

  • Know how to analyze industries, companies, and equity securities as well as the use of basic equity valuation models

10-15%

Fixed Income

  • Types of Fixed Income Securities and Markets
  • Fundamental Fixed Income
  • Term Structure Determination and Yield Spreads
  • Valuation of Individual Fixed Income Securities
  • Analysis of Interest Rate Risk
  • Analysis of Credit Risk
  • Valuing Bonds with Embedded Options
  • Structured Products
  • Fixed Income Portfolio Management Strategies
  • ESG considerations in Fixed Income
  • Learn about the fixed income securities and their yield measures, risk factors, markets, and valuation measurements.

  • Calculating yields, the securitization of assets, fixed income securities, bond returns and risks, credit analysis.

10-15%

Corporate Issuers/ Finance

  • Corporate Structures and Strategies
  • Corporate Ownership and Governance
  • Risk Factors (including environmental and social)
  • Corporate Financing Decisions
  • Corporate Actions, Combinations, and Restructuring
  • Introduction to corporate governance

  • Know the growing impact of environmental and social considerations in investing

5-10%

Quantitative Methods

  • Time Value of Money
  • Probability Distributions and Concepts
  • Sampling and Estimation
  • Regression Analysis
  • Artificial Intelligence/Machine Learning and Big Data Analysis and Applications
  • Time-Series Analysis
  • Back-testing, Simulation, and Scenario Analysis

Exploring about quantitative concepts and techniques used in financial analysis; investment decision making

5-10%

Economics

  • Market Forces of Supply and Demand
  • The Firm and Industry Organization
  • Business Cycles
  • Inflation and Deflation
  • International Trade and Capital Flows
  • Currency Exchange Rates
  • Monetary System, Monetary and Fiscal Policy
  • Economic Growth and Development
  • Effects of Regulations
  • Economic Analysis and Setting Capital Market Expectations
  • Effects of Geopolitics on Economies and Investment Markets
  • Applications of Economic Factors in the Investment Process
  • To analyse the fundamental concepts of supply and demand

  • Understand various market structures, macroeconomic concepts and principles

5-10%

Portfolio Management and Wealth Planning

  • The Investment Policy Statement
  • Modern Portfolio Management Concepts
  • Investment Vehicles (including ETFs and Mutual Funds)
  • Market Efficiency and Passive Investing
  • Market Indexes
  • Behavioral Finance
  • Environmental, Social, and Governance (ESG) Investing
  • Management of Individual/Family Investor Portfolios
  • Tax Impact of Investment Decisions
  • Management of Institutional Investor Portfolios
  • Investment Manager Selection
  • Asset Allocation
  • Portfolio Construction and Revision
  • Currency Management
  • Liability – Driven Investments (including Asset Liability Management and Goal-Based Investing)
  • Risk Management (including environmental risk)
  • Execution of Portfolio Decisions (including Trading and Market Microstructure)
  • Performance Attribution and Appraisal

Learn about the fundamentals of risk and portfolio management

10-15%

Derivatives

  • Types of Derivative Instruments and Markets
  • Valuation of Forwards and Futures Contracts
  • Valuation of Option Contracts
  • Valuation of Swap Contracts
  • Uses of Derivatives in Portfolio Management
  • Valuation concepts such as swaps, forwards, futures, and contingent claims

  • Conceptual framework related to derivative markets and derivatives

5-10%

Alternative Investments

  • Types of Alternative Investments
  • Real Estate
  • Real Assets (including Infrastructure, Timber and Farm Land)
  • Private Capital (including Private Equity, Private Credit and Venture Capital)
  • Hedge Funds
  • Commodities
  • Alternative Investments Portfolio Management
  • ESG considerations in Alternative Investments

Know about edge funds, commodities, private equity, real estate, and infrastructure

5-10%

CFA level 2 subjects

Subjects in CFA Level 2

Weight %

Ethical and Professional Standards

10–15%

Financial Statement Analysis

10-15%

Equity Investments

10-15%

Fixed Income

10-15%

Corporate Issuers/ Finance

5-10%

Quantitative Methods

5-10%

Economics

5-10%

Portfolio Management and Wealth Planning

10-15%

Derivatives

5-10%

Alternative Investments

5-10%

CFA Level 2 Exam Pattern

With the help of the exam pattern of CFA Level 2, candidates can understand the structure of the exam. Details like how many and what type of questions are asked, time allotted to solve the paper, marking scheme and related are included in the CFA level 2 exam pattern. By knowing these details, candidates can figure out their strengths and areas for improvement; thereby making a good study plan to secure good marks.

Since 2021 the CFA Level 2 exam is being held in online mode abandoning the earlier pen and paper mode. Candidates must ensure enough practise to get comfortable using the online infrastructure to attend the online exam.

Exam Pattern of CFA level 2

ParticularsDetails

Format of questions

Vignette-supported multiple choice questions

Total questions

88

Time duration of CFA Level 2 exam

4 hours and 24 minutes (divided in two equal sessions)

Each session time

2 hours and 12 minutes

Medium of exam

English

Marking scheme

3 points for each question

Negative marking

No

CFA level 2 syllabus 2024 - Item Set Format

As per the official website of the CFA Institute, each item set asked in CFA level 2 exam will consist of vignette followed by either 4 / 6 multiple-choice questions. Candidates should answer the MCQs on the basis of information given in the vignette. Each item set vignette MCQ will begin with two things - a statement of the topic and total point value.

Practice CFA Level 2 Mock Test Free

CFA Level 2 Recommended Study Hours

CFA Level 2 has been designed to enable candidates to customize their preparations to suit their individual needs and circumstances. Candidates who cleared CFA Level 2 reported studying over 300 hours for the CFA Level 2 exam. Furthermore, about half of the candidates who cleared the CFA Level 3 exam cleared all three levels in their first attempts, while the other half took four exams to clear all three levels of CFA.

CFA Level 2 Syllabus 2024 - Data Points

  • Around 97% of candidates agreed that the CFA Level 2 curriculum improved their understanding of the important topics of exam.
  • Around 95% of candidates reported that the curriculum of CFA Level 2 accurately reflects current industry practices.
  • Around 95% of candidates feel that the CFA Level 2 syllabus comprises of concepts and topics that are important to their profession.
  • Around 84% of candidates say that the CFA Level 2 exam questions covered topics that are a matter of importance to investment professionals.
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Frequently Asked Question (FAQs)

1. How many questions will be asked in CFA level 2 exam?

Candidates have to solve 88 question in total. These will be divided into two session.

2. How many hours should I dedicate to prepare for CFA® level 2 exam?

As per the previous record, an average successful candidate spends around 300 hours to prepare for CFA level 2 exams.

3. Where can i check the official syllabus for CFA level 2 exam?

The official syllabus is available on the CFA Institute website.

4. Are the questions in the CFA Level 2 exam objective or descriptive?

The exam pattern of CFA Level 2 consists of objective type questions.

5. What is the hardest subject in CFA Level 2?

Some of the hardest topics in CFA Level 2 are Financial Statement Analysis, Portfolio Management, Ethics and Derivatives.

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