Finance & Accounting
CFA Level II (CFA Institute)
CFA Program Level II
Free CFA Level II practice questions 81 questions with full answer explanations. No sign-up. Start practice →Overview
CFA Level II is the second exam in the CFA Program and is widely considered the hardest of the three. It keeps the same ten topic areas as Level I but tests them through item sets (vignettes): a case is presented, followed by multiple-choice questions that demand application and analysis rather than recall.
The shift from knowing to applying is the defining challenge. Asset valuation, especially equity and fixed income, carries more weight than at Level I, and CFA Institute again recommends around 300 hours of study.
✓ Who it is for
- Candidates who have passed Level I and are ready for the application-heavy middle exam
- Analysts moving from knowing the concepts to valuing equities and fixed income in case scenarios
- Research and investment-track professionals who need to master the item-set (vignette) format
- Anyone committed to the full charter who has budgeted around 300 hours for the hardest of the three levels
✕ Who it is not for
- Anyone who has not passed Level I - it is a strict prerequisite.
- Those who prefer recall-style testing; Level II is application-heavy.
- People not pursuing investment or asset-management careers.
Exam structure
| Format | Item sets (vignettes): a case followed by linked questions |
|---|---|
| Topics | Same ten areas as Level I, weighted toward valuation |
| Emphasis | Equity and fixed-income valuation are heavier than at Level I |
How the exam is weighted
- Ethical & Professional Standards 10-15%
- 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%
Realistic study time
- Passed Level I, finance background ~300 hours over 5-6 months
- CFA Institute guidance 300+ hours per level is typical
Bars show relative effort, not a guarantee. Your time depends on background and study method.
Turn this into a week-by-week schedule with the Study Plan Generator.
What it really costs
Fees change and vary by region. Confirm the current amount on the official site before you register.
Want your full out-of-pocket figure? Try the Cost Calculator.
Salary & career value
Indicative ranges for orientation only - not surveyed data, and not financial or career advice. Sources and date below.
Pay is tied to the broader CFA progression and the finance role you hold, not Level II on its own. Passing Level II signals progress toward the charter and supports analyst-track roles; compensation rises with the role (analyst to portfolio manager), the firm and seniority. These are indicative US ranges and the certification is one factor among many.
Pass rate: Around 39-44% in recent windows, versus a ~46% ten-year average.
Indicative annual pay (USD), each role's typical band on a shared scale.
Other markets (indicative)
| United States | ~$80k-150k (candidate-stage analyst roles) |
|---|---|
| United Kingdom | ~£45k-90k (candidate-stage analyst roles) |
| Hong Kong | ~HK$500k-900k (candidate-stage analyst roles) |
| Singapore | ~S$70k-150k (candidate-stage analyst roles) |
Jobs that often ask for it:
- Investment / Equity Research Analyst
- Financial Analyst
- Risk Analyst
- Asset Management roles
- Portfolio Manager (with charter)
Is it worth it?
If you have passed Level I and are committed to investment management, Level II is the necessary middle step and the steepest jump in difficulty. Budget the full ~300 hours and practise the vignette format specifically. It is not a level to underestimate.
Not sure this is the right exam for you? Compare your options with the Exam Finder.
Compare CFA Level II with other exams
Independent, like-for-like comparisons to help you choose the right one.
Career paths featuring CFA Level II
What to do next
Passing Level II unlocks Level III, the final level. See the Portfolio Manager career path for where the charter leads.
On exam day
At Prometric test centres in scheduled windows; computer-based item sets across two sessions with a break. Strict ID rules and only approved calculators allowed.
Keeping your certification
Levels do not expire; you progress to the next. The CFA charter (after all three levels plus experience) is maintained through CFA Institute membership and an annual fee.
FAQ
- Is CFA Level II harder than Level I?
- Most candidates find it harder. The content overlaps with Level I, but the item-set (vignette) format demands application and analysis under time pressure rather than recall, and valuation topics carry more weight.
- What is the vignette / item-set format?
- Each item set presents a case (the vignette) followed by several multiple-choice questions based on it. You apply concepts to a scenario, which is closer to real analyst work than standalone questions.
- Do I need to pass Level I first?
- Yes. The CFA Program is strictly sequential - you must pass Level I before registering for Level II, and Level II before Level III.
- What is the Level II pass rate?
- CFA Institute publishes it after each exam; in recent years it has sat in the mid-to-high 40s percent. Check CFA Institute for the latest figure.
- Can I self-study for CFA Level II?
- Yes, as with Level I, using the CFA Program curriculum and Learning Ecosystem. Plan for around 300 hours and practise the vignette (item-set) format specifically.
- What jobs does CFA Level II help with?
- It deepens valuation skills relevant to research and investment-analyst roles and is a required step toward the charter that portfolio-management careers expect.
- How much does CFA Level II cost?
- Around US$940-1,250 for the exam window, with the curriculum included. The one-time enrolment was already paid at Level I.
Related exams
- CFA Level I (CFA Institute) - CFA Institute
- CFA Level III (CFA Institute) - CFA Institute
- US CPA (AICPA) - AICPA & CIMA (NASBA)