Not only are CFA Level II concepts generally more complex, but Level II exam questions also require more concentration. Compared to Level I, a candidate will need a higher level of preparation and skill to select the correct answer to a Level II question. For example, at level 1, most questions are of the basic factual or conceptual type, while at level 2, there is greater emphasis on higher-order thinking skills. This is the main disadvantage of candidates who fail: Level 2 represents a major improvement in difficulty compared to level 1.While level 1 approval rates are lower, level 2 candidates tend to get higher approval rates because they are more prepared.
Personally, I found that Level 2 contained much more material than Level 1, and recent changes in the weight of the subjects made it even more difficult to focus on just a few select subjects. Although level 2 of the CFA represents a big step forward compared to level 1 in terms of volume of content, for some candidates this is not comparable to the additional complications that level 3 entails with the essay format (constructed response). Level 1 of CFA can be easy for some, especially if they already have a good financial background in college, or because of the context of their work. Taking CFA level 2 immediately after level 1 helps maintain momentum, builds on existing knowledge and improves retention.
Unfortunately, the CFA Level 2 exam is a different beast, with a reputation for being the most challenging exam and with the most material to cover. Finally, the most difficult CFA Level 3 topics are fixed income, ethics, equity investments, alternative investments and derivatives. Some study materials include a specific Level 1 review booklet for this purpose. I recommend keeping it.
Understanding the value of exceeding level 1 of the CFA and the fundamental role played by thorough preparation for level 2 lays the foundation for moving forward on your path to obtaining the esteemed letter of CFA. Meanwhile, the most difficult topics in level 2 of the CFA are often the analysis of financial statements, portfolio management, ethics and derivatives. The Level 1 CFA program covers several areas, such as investment tools, ethical standards, and different asset classes. Unless, of course, you passed level 1 like Sophie and are trying to pass the CFA in 18 months, in which you can do it in 4 months (with some determination).
Students can better address these higher-order conceptual issues with the best CFA level 2 training. from Bombay.
