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CFA® Program · Level II
CFA Level II — applied valuation
Level II is where the CFA Program shifts from definitions to judgement. Every question lives inside a vignette — a mini case study that forces you to apply the curriculum exactly the way an analyst does on the job.
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Level IIAt a glance
- Vignettes22
- Questions88
- Recommended study350+ hoursacross the level
- Topics10weighted by the official curriculum
Exam format and topic weights are set by CFA Institute. WSU is an independent provider and not affiliated with them.
Curriculum
§ 01What Level II actually covers.
Every topic with its published weight, so study time can be allocated against the exam rather than against intuition.
| Topic | Weight | What it covers |
|---|---|---|
| Quantitative Methods | 5–10% | Multiple regression, time-series analysis and machine-learning concepts you'll lean on throughout the exam. |
| Economics | 5–10% | Currency exchange-rate determination, economic growth and the impact of regulation. |
| Financial Statement Analysis | 10–15% | Inter-corporate investments, employee compensation, multinational operations and quality of earnings. |
| Corporate Issuers | 5–10% | Capital structure decisions, business and financial risk, corporate governance. |
| Equity Investments | 10–15% | DDM, FCFE/FCFF and residual-income models, market-based valuation, private-company valuation. |
| Fixed Income | 10–15% | Term-structure models, credit analysis, MBS/ABS valuation, fixed-income arbitrage. |
| Derivatives | 5–10% | Forward and futures pricing, swap valuation, option-pricing models including binomial and Black–Scholes–Merton. |
| Alternative Investments | 5–10% | Private equity, real estate, infrastructure and hedge-fund strategies — valuation and due-diligence. |
| Portfolio Management | 10–15% | Capital-market expectations, portfolio risk, ETFs and trading-cost analysis. |
| Ethics & Professional Standards | 10–15% | Code & Standards plus the GIPS framework — still a heavy weight and a frequent score-tipper. |
| 10 topics | 100% | Weights are published by CFA Institute and may be stated as ranges. |
Outcomes
§ 02What a Level II candidate should own.
The capabilities the level is testing for, stated as things you should be able to do rather than chapters you should have read.
- Read a Level II vignette under exam pressure and pull out only the data points each item-set question actually needs.
- Build and defend an equity valuation using DDM, FCFE/FCFF, residual-income and multiples-based models.
- Value structured fixed-income products and price options with binomial trees and Black–Scholes–Merton.
- Run a multiple-regression diagnosis — multicollinearity, heteroscedasticity, serial correlation — and interpret the output.
- Adjust financial statements for inter-corporate investments and pension plans before drawing any conclusions.
- Apply the GIPS standards and recognise how Level II ethics scenarios go beyond the Level I framework.
The sitting
§ 03The shape of the exam.
How the paper is structured and how long you have: the constraints worth rehearsing under before exam day.
Questions88 vignette-based
Duration4h 24m total
Sessions2 × 2h 12m
Recommended study350+ hours
Recent Level II pass rates have hovered around 40–50%. The exam is shorter than Level I — but the vignettes carry significantly more weight per minute.
On WSU
§ 04The module set, tuned for Level II.
What the platform provides against this level specifically.
- Vignette-style practiceItem sets that mirror the real Level II format — pull only the data each question needs and build the discipline before exam day.
- Per-LOS performance trackingSee which Learning Outcome Statements are secure, moderate or at risk — so the heavier topics get the heavier hours.
- WSU AI tutor for vignettesStuck on a tricky vignette? The AI walks you through the relevant LOS, the calculation, and the trap the question is testing.
- Full-length Level II mocks22-vignette simulations with real timing pressure — the closest representation of the exam outside CFA Institute itself.
Compare the three levels on the programme overview, or see every capability on the features page.
Ready to prepare for Level II?
Pick your sitting on the next page — every Level II tier includes vignette-style practice, full mocks, and the AI tutor.
Wall Street Uni is an independent study platform and is not affiliated with, endorsed by, or sponsored by CFA Institute.