The title of this section really just says “applied statistics for financial analysis.” Some of the basic principles in the quant section will appear in other exam sections, and this series will attempt to highlight such items. There will likely be one item set (six questions), but two is a possibility. Try not to let […]
CFA Exam Level 2
First of all, congratulations on passing the CFA Level I exam. Now that you are through with the first exam, you can start preparing for the Level II exam. The Level II exam sits at a critical point in the candidate’s roadmap and some consider this exam to be the hardest of the three.
Disclaimer – I cannot say that these tips will guarantee a pass, but if you follow them your chances should improve. This represents my basic approach to L2 (taken in 2009) and I appeared to pass with at least some margin of comfort. Please do not take these as hard rules. Co-opt them to fit […]
If you started in mid-January, then you should be about four weeks away from exam day. Now is the time to start studying 20 hours a week. Call in sick to work, cancel dates, whatever you need to do to make the time.
Week 18 – Review Week 1
Do at least one full blown practice exam this week.
Review Ethics, Econ, Quant, and Portfolio Management
Introductory Remarks and General Guidelines – See Part 1 Week 15 – Derivatives, Part 1 The CFAI has been very generous to you and saved some of the most challenging material for the home stretch. I would lump derivatives into the middle tier with Corporate Finance and Fixed Income. Don’t worry, you can do it. […]
Week 10 – Equity, Part 2
The fun continues this week with global industry analysis, country analysis, the business cycle, estimating growth, equity metrics and multiples, global risk premiums, and equity valuation models.
If you hit week 10 and are still on pace with your schedule, then that is a very good sign. Do not let up on the practice problems and start to take your game up a level.
Week 6 – Financial Statements, Part 3; Progress Test 1
Financial Statements – This is the “synthesis” of financial statement analysis. You will be tying together FSA material from L1 and L2 within the broader scope of evaluating companies. Be prepared to make adjustments to financial statements based on footnote data. Like the other FSA sections, this one is mission critical.
Week 2 – Quant
I believe that many candidates let themselves get unnecessarily stressed about Quant. Keep in mind it is a minor part of test.
Topics include: correlation, significance testing, single and multiple variable regression, assumptions and violations in regression analysis, and time series modeling.
This study plan is based on notes taken from my 2009 journey through the CFA Level 2 exam. There may be some curriculum differences in the next test (CFAI likes to make adjustments from year to year), so be sure to compare this material with the official CFAI books for your exam. I used the […]