Test Prep CFA Level 2 Certification Practice Test Questions, Test Prep CFA Level 2 Exam Dumps
Want to prepare by using Test Prep CFA Level 2 certification exam dumps. 100% actual Test Prep CFA Level 2 practice test questions and answers, study guide and training course from Exam-Labs provide a complete solution to pass. Test Prep CFA Level 2 exam dumps questions and answers in VCE Format make it convenient to experience the actual test before you take the real exam. Pass with Test Prep CFA Level 2 certification practice test questions and answers with Exam-Labs VCE files.
A lot of individuals strive to get the best skills and knowledge to succeed in the investment management profession, so most of them follow the CFA program. The CFA Institute offers the candidates to take three tests, and CFA Level 2 is the second one of this set. The designation you get after dealing with this exam along with two others will help you get the Chartered Financial Analyst (CFA) charter and verify your skills in the investment analysis.
CFA Level 2: Requirements
To take the CFA Level 2 test, it is required to follow certain recommendations. The CFA program is not an easy one, so it will be better for you to have a bachelor's degree or have some professional work experience. This means that your bachelor’s program should be completed before going for CFA and your professional work experience needs to include the ability to solve problems, think critically, develop business communications, and use time management wisely.
The CFA Level 2 exam requires that you have good knowledge of English because it is not available in other languages. Also, your international travel passport has to be valid and your Professional Conduct Statement form should be completed. Additionally, the CFA Level 1 test needs to be cleared as well before you apply for the second part.
CFA Level 2: Structure and Format
CFA Level 2 has a similar structure to other exams from the CFA program. This means that you will have to clear two sections. Each of them will have 44 vignette-supported multiple-choice questions that you need to complete within 4 hours and 30 minutes in total. There will be about 4-6 items in each vignette, so you will have about 3 minutes per each of them. Every question will offer you to choose one option out of 3 given. The items are not free-standing as in CFA Level 1, which means that you will need to refer back to the vignette before answering them. Please note that some questions can be up to 2 pages long because of their features, so you should know how to answer this type of questions quickly and efficiently.
CFA Level 2: Main Sections
The topics covered in CFA Level 2 are the same as in the Level 1 test, but they have different weight. Some of them have a lesser impact on the overall content, while the others have the opposite effect. Thus, you should be ready for the following domains:
- Ethical & Professional Standards
The topic covers 10-15% of the exam content and will evaluate your knowledge of ethics and all the related challenges. They include ethical behavior and the role of the professionalism and ethics played in the industry of investment.
- Financial Analysis & Reporting
This area includes 10-15% of the exam questions. Your knowledge of the financial reporting procedures and financial reporting disclosures will be evaluated. It is also required to have the skills in using the alternative accounting methods and basic financial statements.
- Equity Investments
Another 10-15% of the questions will cover the ways of using the basic equity valuation models and your knowledge of the characteristics of equity investments. It also covers security markets, indexes, basic equity valuation models, and global equities.
- Portfolio Management & Wealth Planning
This section also has 10-15% and explains the fundamentals of risk management and portfolio management. It is all about portfolio construction, the ways to use the available investment solutions so that they fit the needs of the individual and institutional investors.
- Fixed Income
Next 10-15% of the content covers the details of risk factors, yields measures and calculations, and bond returns. Here, an individual should also have the knowledge of the securitization of assets, common principles of the credit analysis, and fixed income securities.
- Derivatives
Only 5-10% of the exam questions will be covered in this topic. A potential candidate should understand the derivative markets and basic derivatives and know about the valuation concepts and main features of contingent claims, swaps, futures, and forwards.
- Economics
This part has only 5-10% as well and measures your knowledge of the fundamental concepts related to the demand for the individual consumers as well as firms. It is important to know which market structures, macroeconomic principles and macroeconomic concepts a firm uses, including its income measurement, business cycle, aggregate demand and output, as well as supply analysis.
- Alternative Investments
The students will face with only 5-10% of the questions that will cover this section. It is all about infrastructure, commodities, private equity, hedge funds, and real estate. Besides that, you need to learn about the common characteristics of alternative investments for diversifications.
- Corporate Finance
The next domain covers 5-10% of the content and will test your skills in making financing decisions, analyzing stakeholder management, making investing decisions, and using. It is also essential to know how the companies manage their working capital and meet the operational needs.
- Quantitative Methods
The last 5-10% is included in this topic. It comes with the details of the concepts and techniques that you can use in the financial analysis as well as investment decision making. Knowing about dispersion, probability theory, and central tendency is also vital for this area.
CFA Level 2: Benefits and Opportunities
The CFA program is not so easy in general, but it is worth spending your efforts on it. It grants you new possibilities and career paths to follow. All you need to do is pass three tests and CFA Level 2 is the second of them. If you’ve already completed the CFA Level 1 exam, it will be easier for you to adapt to this kind of tests. However, you need to understand that the Level 2 test is more difficult than the first one. Therefore, you need to prepare well for it. If you do so, you will be able to ace it with flying colours and become eligible for the last step of the program that divides you from the obtainment of the CFA designation.
After you complete all the needed steps, you will be able to land a job in one of the companies where the specialists in investment management, insurance, consulting, portfolio management, and commercial/investment banking are required. This means that the job roles of a Portfolio Market Risk Specialist, a Quantitative Finance Analyst, an Equity Trader, and others will be available for you. Also, it will be possible for you to gain a higher income, which can range from $80,930 to $344,500 per year.
So when looking for preparing, you need Test Prep CFA Level 2 certification exam dumps, practice test questions and answers, study guide and complete training course to study. Open in Avanset VCE Player & study in real exam environment. However, Test Prep CFA Level 2 exam practice test questions in VCE format are updated and checked by experts so that you can download Test Prep CFA Level 2 certification exam dumps in VCE format.
