The CFA Level 2 exam includes challenging questions designed to test knowledge of more advanced topics, such as investment valuation concepts. It’s an integral part of becoming a chartered financial analyst (CFA). Here is a quick look at the types of CFA Level 2 questions that you can expect on the exam.
Vignette-Based Questions
The CFA Level 2 exam includes vignette-based questions. These vignettes are short case studies. After reading the vignette, you’ll answer a set of questions related to it. This format tests your ability to apply concepts in lifelike situations.
Multiple Choice Questions
Unlike the Level 1 exam, the Level 2 multiple-choice questions are connected to the vignettes. Most vignettes include six questions. The CFA Level 2 questions may ask you to analyze financial statements, evaluate investment strategies, or apply ethical standards.
Quantitative Analysis
Expect many of the CFA Level 2 questions to involve quantitative analysis. You’ll need to perform calculations and interpret data. These questions may cover topics such as fixed income, equity valuation, and derivatives.
Conceptual Questions
Some of the questions will test your understanding of key concepts instead of requiring quantitative analysis. These questions may include definitions, principles, and theories.
Ethics and Professional Standards
Ethics is an important part of the CFA exam. You can expect questions related to ethical standards and professional conduct. These questions often present ethical dilemmas you must resolve.
Preparing for the CFA Level 2 exam requires you to understand the types of questions that you’ll face. This includes a heavy focus on vignette-based questions, quantitative analysis, and conceptual understanding.
