CFA Institute
CFA Level II
Chartered Financial Analyst Program — Level II Exam
The second of three exams toward the CFA charter. Level II emphasizes asset valuation and the application of investment tools, using item-set (vignette) questions to test analysis across the same ten topic areas as Level I.
What's on the exam
CFA Program Level II Topic Weights (2026)
Quantitative Methods
5–10%Multiple regression · Model misspecification and diagnostics · Time-series analysis · Machine learning concepts · Big data and fintech in investment analysis
Economics
5–10%Currency exchange rate determination · Forecasting exchange rates · Economic growth and the investment setting · Economics of regulation · International parity conditions
Financial Statement Analysis
10–15%Intercorporate investments · Business combinations and consolidations · Employee compensation and pensions · Multinational operations and currency translation · Analysis of financial institutions and reporting quality
Corporate Issuers
5–10%Analysis of dividends and share repurchases · Environmental, social and governance considerations · Cost of capital and capital structure · Corporate restructuring · Business models and stakeholder analysis
Equity Investments
10–15%Discounted dividend valuation · Free cash flow valuation · Market-based valuation (multiples) · Residual income valuation · Private company valuation
Fixed Income
10–15%The term structure and interest rate dynamics · Arbitrage-free valuation frameworks · Valuation of bonds with embedded options · Credit analysis models and credit default swaps · Fixed-income active management
Derivatives
5–10%Pricing and valuation of forward commitments · Valuation of contingent claims (options) · Binomial and Black-Scholes-Merton models · Option Greeks and implied volatility · Swaps, forwards and futures applications
Alternative Investments
5–10%Private equity and private debt valuation · Real estate and infrastructure investments · Hedge fund strategies · Commodities and natural resources · Digital assets and fund structures
Portfolio Management
10–15%Exchange-traded funds · Multifactor models and active return · Measuring and managing market risk · Economics and investment markets · Backtesting and analyzing portfolio strategies
Ethical and Professional Standards
10–15%Code of Ethics and Standards of Professional Conduct · Application of the Standards to scenarios · Asset Manager Code of Professional Conduct · Global Investment Performance Standards (GIPS)
Frequently asked questions
How much does the CFA Level II cost?
The CFA Level II costs $1490. Standard registration for 2026 exam windows; early registration is about $1,140. Fees can differ slightly by level — confirm with the CFA Institute dates-and-fees tool. The one-time $350 enrollment fee was eliminated starting with the February 2026 exam.
How long is the CFA Level II and how many questions does it have?
88 multiple-choice items across 22 item sets (vignettes) — About 4 hours 24 minutes of testing, split into two 2-hour-12-minute sessions (plus optional break).
What do you need to pass the CFA Level II?
Pass/fail; minimum passing score set by the CFA Institute Board of Governors.
Can you retake the CFA Level II?
Up to two attempts per calendar year; cannot sit in consecutive windows.
What is the best way to study for the CFA Level II?
Study the official blueprint, not random material: the exam is weighted by domain (Quantitative Methods 5–10%, Economics 5–10%, Financial Statement Analysis 10–15%, Corporate Issuers 5–10%, Equity Investments 10–15%, Fixed Income 10–15%, Derivatives 5–10%, Alternative Investments 5–10%, Portfolio Management 10–15%, Ethical and Professional Standards 10–15%). Spaced-repetition flashcards built domain-by-domain against that blueprint are the most time-efficient way to cover everything the exam tests.
Program in development
We're building a blueprint-complete program for this exam. Meanwhile, explore live programs across 11 exam.
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