CAIA Level II: syllabus, format and where to start
CAIA Level II applies alternative-investment knowledge to portfolio and manager decisions. The exam has 100 MCQs plus three written sets, so your preparation needs both calculation and explanation.
| Your question | Start here |
|---|---|
| What is tested? | Ten 2027 topic groups, from investor objectives to current issues |
| What must I practise? | MCQs, case-specific decisions and written responses |
| Where are the rules? | 2027 handbook and curriculum companion |
| What is free here? | Online MCQ samples and a separate email-delivered MCQ PDF |
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How Level II organizes alternative-investment decisions
Level II begins with investors and the decisions they face. Its topics connect objectives, allocation, risk, implementation and manager evidence. The current curriculum also includes Ethical Principles and required Emerging Topics. Start from the current companion even if a topic name looks familiar from earlier study.
Use the map below to understand how the groups connect. A method is most useful when you can explain what decision it informs and what assumptions limit it. For example, a valuation model supports a recommendation only when the inputs and the investor’s circumstances make it relevant.
| Topic group | Decision to connect to your study |
|---|---|
| CAIA Ethical Principles | Act responsibly and explain the basis for advice |
| Institutional Asset Owners | Identify objectives, governance and constraints |
| Asset Allocation | Choose and maintain exposures and commitment pacing |
| Risk and Risk Management | Assess losses, liquidity and funding |
| Methods and Models | Select, interpret and challenge analytical tools |
| Accessing Alternative Investments | Evaluate implementation routes |
| Due Diligence and Selecting Managers | Test the process, terms and operational evidence |
| Volatility and Complex Strategies | Understand strategy exposures and interactions |
| Universal Investment Considerations | Consider cross-cutting regulatory and sustainability issues |
| Emerging Topics | Apply the current assigned readings |
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Prepare for both MCQs and constructed response
Level II has 100 MCQs in the first 130-minute section and three constructed-response sets in the second 130-minute section. MCQs carry 70% of exam weight and written responses 30%. The written section receives equal content time, so the weighting should not be mistaken for a time budget.
Practise producing an answer without choices. A useful response names the decision, shows a calculation when requested and ties the recommendation to a case fact. Review whether each subpart is complete before adding background. The written guide provides original cases and weak-versus-complete answer comparisons.
Check your entry route and prerequisite gaps
Candidates ordinarily enter after Level I. Eligible CFA charterholders can apply through the verified Level I waiver route. Prior qualifications may provide useful quantitative or portfolio foundations, but they do not establish mastery of CAIA’s current alternatives applications or remove the written section.
Before starting, test fund cash-flow measures, liquidity timing, exposure and evidence quality. If you can define a concept but cannot use it in an investor decision, repair the foundation and immediately follow it with an application. The prerequisite diagnostic supplies four tasks and a specific repair route for each.
Move from a correct number to a defensible conclusion
An investment committee considers buying a private-fund interest reported at $16m NAV for a 12.5% discount. Calculate the purchase price, then explain what else matters. A discount to reported NAV is a price relationship; it is not proof that the interest is undervalued.
The next steps include examining valuation quality, remaining commitments, expected distributions and the buyer’s liquidity. The answer should show that you understand the arithmetic and its limits. A recommendation that simply says "buy because it is discounted" skips the substantive analysis.
Try it before reading the answer
What is the price before costs and future calls, and what information could undermine the apparent bargain?
Show worked answer
Price = $16m × (1 - 0.125) = $14m. Stale or optimistic NAV, material unfunded commitments, delayed distributions or transfer restrictions could weaken the case. The discount alone does not establish expected return or suitability.
Keep current readings inside the weekly plan
Use the required Emerging Topics for the exam year and read them as assigned. Create a short record of each reading’s claim, mechanism, evidence and limitation. Practise an explanation or decision that uses those ideas. News coverage and an old summary are not substitutes for the current assigned set.
Keep Ethical Principles alongside the technical work. The handbook places both Ethics and Emerging Topics in written responses. Rehearse stating the relevant responsibility or mechanism directly, with case-specific support rather than generic commentary.
Choose the next step from your starting point
Review dates, registration fees and booking availability before committing to a calendar. Study-resource access and exam registration are separate purchases. CAIA’s preparation guidance is a starting reference; your own schedule needs time for reading, MCQs, writing, feedback and full-section rehearsal.
If you have strong foundations, begin the level-specific preparation workflow and write from the first week. If a prior attempt went poorly, separate knowledge and application errors from incomplete written tasks before rebuilding the plan. The small MCQ samples are useful learning exercises but do not demonstrate full-format readiness.
Common questions
- What should I study first for Level II?
- Start from investor objectives and test the foundations you need for allocation, risk and manager analysis.
- Does the free PDF cover the whole exam?
- No. It is a 20-MCQ sample with explanations. Use the official curriculum for complete coverage; Level II also requires written practice.
Sources and editorial notes
By MiloPrep editorial team. References checked 10 October 2026. Exam scope: 2027. The notes below identify what each reference supports. Provider claims are not independent outcome comparisons. Worked examples, study schedules and fit judgments are editorial; official exam dates are attributed separately.
- CAIA 2027 Exam Handbook
Printed pp. 3-4: topic weights and format split. Page 15: question counts and section times. Pages 11, 13 and 16: arrival, calculators and break procedures. Our pacing checkpoints are arithmetic, not official rules.
- CAIA 2027 curriculum overview
Current level-specific subject coverage. Teaching examples on this site are independent.
- 2027 Level II Curriculum Companion
Official Level II learning objectives and terms; linked from CAIA’s study-tools page.
- CAIA Level I waiver for CFA charterholders
Eligibility, digital-badge verification and registration for the CFA-holder route to Level II.
- CAIA curriculum and study tools
Annual curriculum applicability, included digital curriculum, official samples and required readings.
- CAIA registration dates and fees
Dated registration and retake charges. Confirm the selected window before paying.
- CAIA candidate resources
The association reports that most successful candidates spend 200 or more hours preparing per level. This is orientation, not a guarantee or a personalized estimate. Official exam demonstration and study resources.
MiloPrep is an independent study resource, not affiliated with or endorsed by CAIA Association or the named providers.