The exam format for level 2 is quite different from level 1. In addition to having to do item sets, the CFAI does not give exact weightings of each topic in the exam.
Altogether there are 20 item sets; 10 in the morning and 10 in the afternoon. Using the exam weighting guide, I have made a table showing what the exam structure could look like:
AM Session
| Ethics | Quantitative Methods |
| FRA | Fixed Income |
| FRA | Alternative Investments |
| Equity | |
| Equity |
PM Session
| Ethics | Corporate Finance |
| FRA | Derivatives |
| Equity | Portfolio Management |
| Equity | |
| Economics |
Two item sets in each session have been left blank because the weights for each topic in the exam are ranges (apart from ethics which is set at 10%). This means these items sets could be any four from the following topics:
| Quantitative Methods | Corporate Finance |
| Economics | Corporate Finance |
| FRA | Equity |
| FRA | Equity |
| Derivatives | Fixed Income |
| Derivatives | Fixed Income |
| Alternative Investments | Alternative Investments |
The first thing to note is that FRA and Equity together make at least 35% of the exam. Possibly up to 55%! These two subjects are definitely the most important, and getting a high mark in these can help immensely in passing.
The other thing to note is that every topic has the potential of being heavily tested in the exam. Quantitative Methods and Economics could possibly be worth 10%, and the others (apart from Equity and FRA) could be worth 15%. No topic can be ignored. There is no way to predict which topics will be tested more than others.
I took the same approach towards level 1. I didn’t neglect any area, even when I knew there were sections worth only 5%. I will take the same approach to level 2 and when it comes to revision time I will cover every topic as if it were crucial to the exam. And they are: 5% could mean the difference between passing and failing.
Today I finished study session 8. I will aim to finish corporate finance by thursday. It’s strange how I can spend four days on one topic, whereas it took me two weeks to get through FRA, which is about the same length as corporate finance. I’m not complaining though. I’m behind my study schedule so I need to get through some topics very quickly…
75 days until the level 2 exam.
1 comments:
Going from experience I can say that there will very likely be 2 item sets on fixed income. Last year had an item set on each study session with an extra one on FSA, and equity. Of course that is no guarantee for this year.
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