As a seasoned expert in the field of finance and investments, I have seen many aspiring professionals struggle with the hardest CFA Level 2 topics. These include financial statement analysis, portfolio management, ethics, and derivatives. However, with the right approach and preparation, passing this challenging exam is definitely achievable. In this article, I will provide an in-depth analysis of CFA Level 2 compared to Level 1, the curriculum, the test score, and the passing rate trend. So, if you are planning to take on this exam, read on to find out what you can expect and how to prepare for it.
Level 2 vs.
Level 1One of the biggest differences between CFA Level 2 and Level 1 is the level of detail. While Level 1 focuses on basic concepts and tools, Level 2 delves deeper into asset valuation. This can come as an unpleasant surprise for those who did not spend enough time practicing questions. As an expert, I have seen many candidates underestimate the difficulty of this exam and end up struggling to pass.
The Exam Format
The results of the Level 2 exam are usually published together with those of Level 1, about 60 days after the exam date.The format of the multiple-choice questions is similar to that of Level 1, but there are only 120 questions compared to the 240 questions in Level 1.This means that the questions in Level 2 are more complex and require a deeper understanding of the material. Another important difference is that while Level 1 has both multiple-choice and essay questions, Level 2 consists only of multiple-choice questions. However, some of these questions are interrelated, so it is crucial to have a strong grasp of the material to answer them correctly.
The Curriculum
The Level 2 curriculum builds upon the knowledge gained in Level 1 and focuses more on asset valuation. This means that the questions are more difficult and require a higher level of understanding. As an expert, I have noticed that many candidates make the mistake of assuming that the same amount of effort they put into Level 1 will be enough for Level 2.This is not the case, and many realize it too late. Some readers have commented that Level 1 is relatively easy, but I have never heard such a comment about Level 2.This is because the curriculum is based on Level 1 knowledge, but the questions are designed to be more challenging.So, it is essential to thoroughly review and understand the material from Level 1 before moving on to Level 2.
Passing Rate Trend
The passing rate for CFA Level 2 has been consistently lower than that of Level 1 in recent years. In fact, in June 2020, only 43% of candidates passed the exam. This shows just how difficult this exam can be and emphasizes the importance of proper preparation.Preparation Tips
As an expert, I have seen many candidates struggle with CFA Level 2 because they did not prepare adequately. Here are some tips to help you conquer this challenging exam:- Start early: The earlier you start studying, the better.
This will give you enough time to thoroughly review and understand the material.
- Practice, practice, practice: The key to success in CFA exams is practice questions. Make sure to do as many practice questions as you can to familiarize yourself with the exam format and level of difficulty.
- Focus on the difficult topics: As mentioned earlier, the hardest CFA Level 2 topics are financial statement analysis, portfolio management, ethics, and derivatives. Make sure to spend extra time on these topics to ensure a strong understanding.
- Review Level 1 material: Since the Level 2 curriculum builds upon the knowledge gained in Level 1, it is crucial to review and understand the material from Level 1 before moving on to Level 2.
- Join a study group: Studying with others can be beneficial as it allows you to discuss and clarify any doubts or questions you may have.
In Conclusion
As an expert in the field, I can confidently say that CFA Level 2 is one of the most challenging exams in the finance industry. However, with proper preparation and a solid understanding of the material, passing this exam is definitely achievable.So, if you are planning to take on this exam, make sure to start early, practice diligently, and focus on the difficult topics. With determination and hard work, you can conquer the hardest CFA Level 2 exam and take your career in finance to new heights.
