Practice question for CFA Exam Prep. Level 2 2027

Overview of Level 2 Exam

The Level 2 exam requires a deeper understanding of investment management and portfolio theory. You will be challenged with real-world scenarios that test your knowledge. It is crucial to thoroughly comprehend the topics covered in Level 2, as it is closer to the charter.

Level II curriculum topics and weights

1. Quantitative Methods 5–10%

2. Economics 5–10%

3. Financial Reporting and Analysis 10–15%

4. Corporate Issuers 5–10%

5. Equity Valuation 10–15%

6. Fixed Income 10–15%

7. Derivatives 5–10%

8. Alternative Investments 5–10%

9. Portfolio Management 10–15%

10. Ethical and Professional Standards 10–15%

Level II exam format

The Level II exam consists of multiple-choice questions. Familiarizing yourself with the format will help you approach the exam efficiently, manage your time effectively, and avoid common pitfalls to maximize your performance.

Exam structure

The Level II exam consists of 22 item sets comprised of vignettes with 88 accompanying multiple-choice questions.

Exam duration

The Level II exam will be 4 hours and 24 minutes, split into two equal sessions of 2 hours and 12 minutes, with an optional break in-between.

Question format

The Level II exam is standardized with 11 item sets for each session, for a total of 22 on the exam. Twenty of these items are scored, and two are being trialed and will not be scored.

Multiple-choice questions in each item set must be answered based on the information in the vignette. Hence, the items are not free-standing, as in the Level I exam. You'll need to refer to the vignette before answering each item.

The Program curriculum topic areas for Level II will be randomly placed on the exam. All topics may be covered in either the first or second sessions, or possibly both sessions. Each item set vignette will begin with a statement of the topic and total point value. For example:

TOPIC: QUANTITATIVE METHODS
TOTAL POINT VALUE OF THIS QUESTION SET IS 12 POINTS

Level II exam tips

Here are some practical tips to help you perform your best on the Level II exam.

• Financial Statement Analysis: Questions on this topic are based on International Financial Reporting Standards (IFRS), unless otherwise noted. If a question references U.S. GAAP, this will be explicitly stated.

• No penalty for guessing: There is no penalty for incorrect answers, so be sure to answer every question.

• Know your calculator: Make sure you know how to use the calculator features needed to solve the formulas and examples shown in the curriculum. Familiarity with your calculator will save valuable time during the exam.

• Dress for comfort: There’s no official dress code, but dressing in layers will allow you to adjust to the room temperature and remain comfortable during the exam.

• Exam hardware and software: Make sure you’re aware of how hardware and software at test centers might affect your experience.

• Practice, practice, practice: Take a mock exam in the Learning Ecosystem to practice answering exam questions.

• Proctor assistance: During the normal course of the exam, candidates may find they need assistance from proctors.