[转帖]The Level II Examination

Website, investment, relating, concepts, valuation

转自Stalla Website

The 2007 Level II Exam emphasizes asset valuation while testing your ability to apply concepts at Level I relating to investment analysis, valuation, and ethical and professional conduct. The focus here is on analysis and application.

The Level II Exam consists of 120 questions formatted as item sets, which are essentially a case or vignette (between one and two pages long) followed by six multiple-choice questions relating to that vignette. The exam is administered in two three-hour sessions, one in the morning, followed by a lunch break, and then a second three-hour session in the afternoon. Each session consists of ten item sets for a total of 60 multiple-choice questions. The broad topic areas covered in the afternoon session will generally be the same ones covered in the morning, with one or two item set exceptions. At Level II, you will have approximately three minutes on average to answer each multiple-choice question, including reading the vignette. Each session is self-contained: questions answered in the morning session cannot be revisited in the afternoon session.

Exam Topics

Not all topics are given equal weight at each level of the CFA Exams. Although variations exist in weightings from year to year, and the categorization of multifaceted problems are open to some interpretation, an approximate breakdown of the relative importance of the different topic areas for the Level II Exam is as follows:

Ethical and Professional Standards, 5-15 percent
Investment Tools, 35-45 percent
- Quantitative Analysis, 0-10 percent
- Economics, 0-10 percent
- Financial Statement Analysis, 15-25 percent
- Corporate Finance, 5-15 percent
Asset Valuation, 35-45 percent
- Equity Investments, 20-30 percent
- Fixed Income Investments, 5-15 percent
- Derivatives, 0-10 percent
Portfolio Management, 5-15 percent

Clearly, the Level II Exam emphasizes Financial Statement Analysis (which includes Corporate Finance) and Equity Valuation (50 percent of the exam). Generally, the Level II Exam focuses on Asset Valuation. While the CFA Exam writers attempt to cover important subjects thoroughly, the also try to make the tests different from year to year to prevent candidates from "gaming" the exam. Learning Outcome Statements (LOS) that have been emphasized in past may not be in the current year. CFA Institute Study Guides cover a sufficient number of readings and sub-topics to ensure that many will be covered on the exam, but others will not. There is no way to determine in advance which sub-topics will be covered, and which ones will be ignored in any given year. Candidates are advised, therefore, to prepare thoroughly for all subjects assigned in the study program.

The item set format you’ll encounter in the Level II Exam requires adjustments to the exam-taking techniques you may have found successful at Level I. Time management is even more critical at Level II. As you read each vignette, make notes in the margins and circle or underline critical pieces of information to make referring back to the vignette quicker and easier as you work each subsequent problem. On your first pass through the exam, answer as many of the individual multiple-choice questions as you can in each item set. If you must guess, try to eliminate any clearly wrong answer choices and choose from the remaining. Mark those questions in the exam booklet that have answers you are unsure about so you can return to them after you have attempted all other item sets at least once.

You can afford to miss quite a few questions and still pass, so don't get frustrated or anxious if you struggle with several questions in any individual item set. The key is to avoid a situation where “30 minutes remaining” is called, and you haven’t at least read all the vignettes. After completing your first pass, you will feel more relaxed and find that you can answer more of the questions that you had previously marked as unsure. Because no penalty is imposed for wrong answers, leave no answer blank.

Although the overall passing score is not predetermined, we recommend that you aim for an overall score of 70 percent or better. Remember, the goal is not a perfect score, but a passing score. Don’t underestimate the psychological impact of time pressure. Condition yourself to stay calm and focused throughout your exam regardless of how you perceive your performance at the time.

If you are a Stalla student and followed our program as advised, we have every confidence you will succeed. As you know, however, the CFA® Examinations are comprehensive and very difficult, time-pressured, and fatiguing. The key to passing is preparation.