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| Level II CFA Exam |  The Level II CFA exam emphasizes asset valuation while testing your ability to apply concepts at Level I relating to investment analysis, valuation, and ethical and professional conduct. The Level II CFA Exam focuses on analysis and application.
The exam includes 120 questions formatted as item sets, which are essentially a case or vignette (between one and two pages long) followed by six multiple-choice questions relating to that vignette. The Level II exam is administered in two three-hour sessions, one in the morning, followed by a lunch break, and then a second three-hour session in the afternoon. Every session consists of ten item sets for a total of 60 multiple-choice questions. The large topic areas covered in the afternoon session will generally be the same ones covered in the morning, with one or two item set exceptions. At Level II exam, you will have approximately three minutes on average to answer each multiple-choice question, including reading the vignette. Every session is self-contained: questions answered in the morning session cannot be revisited in the afternoon session.
Exam Topics
Note, not all topics are given equal weight at each level of the CFA Exams. Although variations in weighting occur from year to year, and the categorization of multifaceted problems is open to some interpretation, an approximate breakdown of the relative importance of the different topic areas for the Level I exam is as follows:
• Ethical and Professional Standards, 5-15 percent
• Investment Tools, 35-45 percent
o Quantitative Analysis, 0-10 percent
o Economics, 0-10 percent
o Financial Statement Analysis, 15-25 percent
o Corporate Finance, 5-15 percent
• Asset Valuation, 35-45 percent
o Equity Investments, 20-30 percent
o Fixed Income Investments, 5-15 percent
o Derivatives, 0-10 percent
• Portfolio Management, 5-15 percent
Apparently, the Level II exam emphasizes Financial Statement Analysis (which includes Corporate Finance) and Equity Valuation (50 percent of the exam). Generally, the Level II exam focuses on Asset Valuation.
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