By: The Analyst’s Desk
Then, you must answer six questions on that single story. cfa level 2
The ultimate test of applied financial logic. Brutal. Fair. Transformative. By: The Analyst’s Desk Then, you must answer
You are no longer a generalist. You are now an analyst. | Topic | Why it’s hard | The "Aha!" moment | | :--- | :--- | :--- | | Equity | Three-stage DDM, FCFE, and relative valuation mixing | Realizing FCFF is cash to all providers of capital | | FSA | Pension accounting & intercorporate investments | Understanding OCI (Other Comprehensive Income) | | Derivatives | Swap valuation & Black-Scholes assumptions | Visualizing the binomial tree for options | | AI/Quant (new) | Machine learning & big data analytics | Knowing the difference between supervised vs. unsupervised | The Bottom Line CFA Level 2 is a rite of passage. It filters the curious from the committed. When you walk out of that Prometric center after 4.5 hours, your brain will feel like burnt toast. You won't know if you passed. You are now an analyst
Unlike Law or Medicine, CFA Level 2 allows you to skip a sub-topic entirely if you master the others. But be warned: Derivatives is only 5-10% of the exam, but if you skip it, you fail. You need ~70% to pass, but the MPS (Minimum Passing Score) floats.