CFA Level II
Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
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Start your CFA Level II practice
MiloPrep will cover Level II with adaptive practice mapped to the published content areas.
Who should prioritise Level II
Fits you if
- Analysts, portfolio managers, and career-switchers targeting investment management who can commit to a multi-year, three-level sequence.
Skip if
- Candidates who need a US CPA licence, or who only want alternatives depth - CAIA may be the better primary path.
- Also skip if you cannot protect hundreds of study hours across multiple exam windows.
Format at a glance
Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions. Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
Question format
Item sets (vignette + multiple choice)
Duration
264 min
2 sessions
Questions
88
Sessions
2
CFA Level II topic weights
Published weight ranges or scored-question allocations from the awarding body. Use them to budget study time - larger areas deserve calendar priority.
Level II
| Topic | Weight |
|---|---|
| Ethical and Professional Standards | 10–15% |
| Quantitative Methods | 5–10% |
| Economics | 5–10% |
| Financial Statement Analysis | 10–15% |
| Corporate Finance | 5–10% |
| Equities | 10–15% |
| Fixed Income | 10–15% |
| Derivatives and Risk Management | 5–10% |
| Alternative Investments | 5–10% |
| Portfolio Construction | 10–15% |
Sample Level II study sequence
Select a stage to see its purpose. This is not an official timetable. Repeat or shorten stages according to your baseline, work calendar, and timed practice results.
Ethical and Professional Standards
Weight 10–15%. Reading the vignette once and answering from memory instead of locating the facts that change each item-set question.
Keep your primary course aligned with the current syllabus, then use practice evidence to decide whether this stage needs more repetition.
Where CFA practice should focus
Three high-leverage drills. If practice time is short, start here.
Ethics application, not slogan recall
Practise duty-of-care conflicts and disclosure timing. The stem usually turns on one missing disclosure.
Vignette fact locating (Level II)
Underline only the numbers and constraints each item needs. Extra vignette colour is often a distractor.
Pathway-weighted Level III writing
Budget study time for your specialised pathway. It is a large share of the Level III exam.
Navigate this exam
Level II learn articles(15)
Full CFA learn index →- Ethical and Professional StandardsEthical and Professional Standards has a published allocation of 10–15% in Level II: treat it as a decision rule plus timed practice, not vocabulary alone. Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
- Quantitative MethodsQuantitative Methods has a published allocation of 5–10% in Level II: treat it as a decision rule plus timed practice, not vocabulary alone. Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
- EconomicsEconomics has a published allocation of 5–10% in Level II: treat it as a decision rule plus timed practice, not vocabulary alone. Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
- Financial Statement AnalysisFinancial Statement Analysis has a published allocation of 10–15% in Level II: treat it as a decision rule plus timed practice, not vocabulary alone. Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
- Corporate FinanceCorporate Finance has a published allocation of 5–10% in Level II: treat it as a decision rule plus timed practice, not vocabulary alone. Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
- EquitiesEquities has a published allocation of 10–15% in Level II: treat it as a decision rule plus timed practice, not vocabulary alone. Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
- Fixed IncomeFixed Income has a published allocation of 10–15% in Level II: treat it as a decision rule plus timed practice, not vocabulary alone. Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
- Derivatives and Risk ManagementDerivatives and Risk Management has a published allocation of 5–10% in Level II: treat it as a decision rule plus timed practice, not vocabulary alone. Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
- Alternative InvestmentsAlternative Investments has a published allocation of 5–10% in Level II: treat it as a decision rule plus timed practice, not vocabulary alone. Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
- Portfolio ConstructionPortfolio Construction has a published allocation of 10–15% in Level II: treat it as a decision rule plus timed practice, not vocabulary alone. Asset valuation through item sets. 22 item sets / 88 questions across two 132-minute sessions.
- Vignette Fact Isolation DrillLevel II item-set skill: locate the facts that change each question instead of answering from vignette memory.
- Equity Valuation Model SelectionWhen DDM, FCF, and residual-income models apply — Level II stems punish model mismatch more than arithmetic.
- Credit Analysis Within Fixed Income Item SetsSpread components, covenants, and credit-risk cues embedded in Level II fixed-income vignettes.
- Derivatives Pricing SensitivitiesGreeks and payoff diagrams under Level II item sets — match the risk measure to the question ask.
- Intercorporate Investments Accounting EffectsConsolidation vs equity method impacts on ratios — a frequent Level II FSA trap across item sets.
How to read a Level II item set
Setup
A vignette describes a firm’s inventory method change, two years of ratios, and an analyst’s conclusion. Four questions follow about earnings quality and comparability.
How to read it
Before question 1, list the method change, the direction of COGS/inventory impact, and which ratio the analyst cited. Each question usually depends on one of those facts, not the whole story.
Takeaway
Item sets punish global skimming. Extract the controlling facts once, then answer tightly.
Troubleshooting common CFA study problems
If your mocks are stuck, match the symptom and change the next week. do not just do more of the same questions.
Level I mocks stuck in the mid-50s
Likely cause
Even practice across all topics while Ethics or FSA remain weak.
Next step
Reallocate the next two weeks to your lowest high-weight topics only.
Level II vignettes feel endless
Likely cause
Re-reading the full vignette for every question.
Next step
Build a three-line fact sheet per vignette before you open question 1.
Level III constructed responses ramble
Likely cause
Writing theory paragraphs instead of answering the command word.
Next step
Practice bullet answers that start with the decision, then one supporting reason.
Level II study-week checklist
- List published weights for Level II
- Drill Item sets (vignette + multiple choice) under partial timing
- Attack failure mode: Reading the vignette once and answering from memory instead of locating the facts that change each i
- Run one block near 264 minutes
- Log misses and retest within 72 hours
If level i mocks stuck in the mid-50s, Reallocate the next two weeks to your lowest high-weight topics only.
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Level II FAQs
- How many levels are in the CFA Program?
- Three: Level I, Level II, and Level III. You sit them in order.
- What is the Level I format?
- 180 stand-alone multiple-choice questions across two sessions of 135 minutes each, per CFA Institute candidate resources.
- How is Level III different?
- Level III mixes item sets with constructed-response sets and includes a specialised pathway that carries a large weight band. See the topic table on this page.
- Does MiloPrep include all three CFA levels?
- Yes. The all-access plan covers Level I, Level II, and Level III practice under one subscription.
Next steps
Level II practice
Blueprint explorer and sample questions for Level II.
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Full CFA overview, parts, and study sequence.
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