By The Exam Atlas Editorial Team · Verified 2026-06-02
A practical, step-by-step plan to take CFA Level II from "interested" to exam-ready — the mechanics, what to study in what order, how to practise, and how to know you are ready.
Minimum Passing Score set by the Board (not published)
Exam fee
$940–$1250 (per exam window; the one-time enrolment is already paid at Level I)
Validity
Second of three levels in the CFA Program
Languages
EN
Study plans by timeline
16-week intensive
Near full-time (~19 hrs/week): front-load FSA and equity valuation, then the other asset classes, ethics revisited, then heavy item-set practice.
24-week balanced
The common pace (~12-13 hrs/week): work topic by topic with valuation focus, review continuously, and reserve the last month for vignette mocks.
32-week steady
A gentle pace around a job (~9-10 hrs/week): one or two topics at a time with cumulative review and weekly item-set practice.
What to study, in order
Months 1–2
Financial Statement Analysis and Equity Investments (the valuation core, heavily weighted at Level II)
Months 3–4
Fixed Income, Derivatives, Corporate Issuers and Economics, with their valuation applications
Month 5
Quantitative Methods, Alternatives, Portfolio Management and a deep pass on Ethics
Month 6
Vignette-based mock exams and weak-area revision
CFA Level II is the valuation level: it takes the tools from Level I and uses them to value equities, fixed income and derivatives in real depth. The defining feature is the format — every question belongs to a vignette (item set), a short case followed by linked multiple-choice questions. The biggest mistakes are treating it like Level I and under-practising the vignette format. This guide is study guidance only, with no real or simulated exam questions.
What changes from Level I
Depth over breadth. The same ten topic areas return, but Level II goes much deeper, especially on valuation.
Everything is a vignette. You read a case, then answer several linked questions. Details buried in the case often decide the answer.
Weights shift toward valuation. Financial statement analysis and equity valuation typically carry large weight, with fixed income and derivatives close behind. Confirm current weights with CFA Institute.
How to study each area
Financial Statement Analysis — deeper adjustments and their effect on valuation.
Equity Investments — the core: dividend discount models, free-cash-flow models and multiples.
Fixed Income — valuing bonds, including those with embedded options, and credit analysis.
Derivatives — pricing and reasoning about forwards, futures, options and swaps.
Corporate Issuers, Economics, Quantitative Methods — applied to valuation contexts.
Alternative Investments and Portfolio Management — valuation and the portfolio context.
Ethics — tested at every level; apply the Code and Standards to cases.
How to prepare
Front-load the heavily weighted valuation topics (FSA and equity), then the other asset classes, with ethics threaded throughout. The single most important habit is practising full item sets under timed conditions so the vignette format becomes second nature. Authoritative material is CFA Institute’s own curriculum.
When to start
Work backwards from your exam date. To fit roughly 300 hours plus a final block of mock exams, four to six months is the usual runway. There is a second reason to start sooner rather than later: Level II builds straight on Level I, so the fresher that foundation, the less time you lose relearning it. If a long gap has passed since Level I, add a short refresher to the front of your plan.
Refresh Level I first, but lightly
You do not need to re-study Level I from scratch. Spend a little time at the start reviving only the tools Level II actually uses again and again: the time value of money, the basics of reading financial statements, and the core quantitative methods. Once those feel solid, move into the new and deeper material. Re-reading all of Level I is a common way to waste weeks you do not have.
How to work through item sets
The vignette format rewards a specific reading habit. Read the whole case before you touch the questions, and note where the numbers and assumptions sit, because a single line in the case can change an answer. Watch for figures placed there to tempt a wrong method. Give yourself a realistic time budget per set in practice, and after every set, take each missed question back to the concept it tests rather than just reading the correct letter. Practising isolated questions is not enough; it is the full-case format you are training for.
Mock exams: how many and when
Reserve the last four to six weeks for full-length, timed mocks in the real two-session shape. Several is a sensible target. Treat each as a diagnosis: it tells you which topics still leak marks and how your timing holds up under fatigue. Aim to be scoring comfortably above your passing target on recent mocks before exam day, and spend the gap between mocks fixing the specific weaknesses each one exposes.
The final stretch
In the closing weeks, stop adding new material and consolidate. Cycle through mocks, your weakest topics and a focused ethics review, since ethics is tested at every level and can decide a close result. In the last few days, taper: light review, logistics and rest beat cramming.
Staying consistent
Most candidates fail Level II on consistency, not intelligence. A steady schedule of regular study blocks beats occasional long sessions, and tracking what you have covered keeps the breadth from slipping. Build practice in from the first week rather than saving it for the end, and protect the plan against the weeks when work or life gets busy.
Key concepts to master
Level II is the valuation level
It applies Level I tools to actually value equities, bonds and derivatives, in more depth.
Everything is a vignette
Each item set gives a case, then asks linked multiple-choice questions — read the case carefully.
Equity and FSA are weighted heavily
Financial statement analysis and equity valuation carry large weight at Level II.
Ethics still counts
Ethics is tested at every level and can decide a borderline result.
Show your working on valuation
Many questions test whether you can apply a model (DDM, FCFF/FCFE, multiples) to the case data.
What you should be able to do
By exam day, you should be able to:
Read a vignette and identify the data each question actually needs
Value equity using DDM, FCFF/FCFE and multiples
Analyse and adjust financial statements in more depth than Level I
Value fixed-income instruments, including those with embedded options
Price and reason about derivatives (forwards, options, swaps)
Apply the Code and Standards (Ethics) to a case
Complete item sets accurately under timed conditions
How to practise
Practise full item sets, not just isolated questions, so you get used to extracting the relevant data from a vignette under time. In the final month, sit full-length timed mocks in the vignette format and review every missed item back to the underlying concept.
Practise actively from early on — recall and apply, don't just re-read.
Each week, review the previous week's weak spots before moving on.
Do at least one full-length, timed mock near the end, then a second after fixing weak areas.
We never publish exam dumps or "real" questions. Use official practice and reputable providers for question banks.
Are you ready? (readiness checklist)
You score at or above the pass mark (Minimum Passing Score set by the Board (not published)) on full-length, timed mocks — consistently, not once.
No more than one or two weak domains remain, and you know exactly which.
You can explain why the wrong options are wrong, not just spot the right one.
You've completed at least one full-length mock under real time pressure.
You could pass next week, not only on the day you crammed.
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.
Arrive early, or run the online-proctoring system check well ahead; have valid ID ready.
Budget your time per question and keep moving — don't sink minutes into one item.
Where the format allows, flag hard questions and return to them rather than stalling.
Read scenario and performance-based questions twice: work out what is actually asked first.
Taper in the final days — light review and rest beat an all-nighter.
Common mistakes to avoid
Treating it like Level I — Level II goes deeper and is all vignette-based.
Skimming the vignette and missing details that change the answer.
Under-practising full item sets under timed conditions.
Neglecting Ethics because it feels familiar from Level I.
Start with the free and official resources above. Paid courses and question banks help if you want structure, but they are optional, not required to pass.
What to study next
Passing Level II unlocks Level III, the final level. See the Portfolio Manager career path for where the charter leads.
FAQ
How is CFA Level II different from Level I?
Level II is the valuation level. It goes deeper into valuing equities, fixed income and derivatives, and every question is part of a vignette (item set) — a case followed by linked multiple-choice questions — rather than standalone questions.
How many hours to study for CFA Level II?
Around 300 hours, typically over four to six months, similar to Level I but with more depth on valuation.
What is weighted most heavily at Level II?
Financial statement analysis and equity valuation typically carry large weight, with fixed income and derivatives close behind. Confirm current weights with CFA Institute.
When should I start studying for CFA Level II?
Count back about four to six months from your exam date so you can fit in roughly 300 hours plus time for mocks. Starting while your Level I knowledge is still fresh helps, since Level II builds directly on it.
Do I need to revise Level I before starting Level II?
Not the whole thing. Refresh only the tools Level II leans on — time value of money, the basics of financial statement analysis, and core quantitative methods — then move into the new, deeper material rather than re-studying Level I in full.
How many mock exams should I do for CFA Level II?
Plan for several full-length, timed mocks in the final four to six weeks, sat in the vignette format and across both sessions. Use them to find weak areas and aim to score comfortably above your recent average before exam day.
