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.
Full program: 10 decks, 994 cards.
What's on the exam
CFA Program Level II Topic Weights (2026); 2027 topic outlines rename Corporate Issuers to Corporate Finance, Equity Investments to Equities, Derivatives to Derivatives and Risk Management, and Portfolio Management to Portfolio Construction, with the same weight ranges
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); 20 item sets are scored and 2 are trial sets — 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?
Start from the official outline and your primary study materials: 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%). Once you've learned the material, spaced-repetition flashcards organized by those domains are an efficient way to retain it and refresh it before test day.
Ready to prepare?
Our CFA Level II program is organized by this outline's domains and scheduled by spaced repetition, with a path from first card to test day.
Flashcards are a memory tool. Learn the material first, then use NoReread to retain it and refresh what you already know. It doesn't replace studying the subject.