CFA Level II covers the same ten topic areas as Level I, but in much greater depth and with the emphasis on valuation. Every question is part of a vignette (item set). This is a plain-English summary; topic weights are set by CFA Institute and can change, so confirm the current weightings with the official curriculum.
| Topic | Note at Level II |
|---|---|
| Ethical and Professional Standards | Tested at every level; applied to cases |
| Quantitative Methods | Regression and applied modelling |
| Economics | Currency and applied macro for valuation |
| Financial Statement Analysis | Deeper adjustments; heavily weighted |
| Corporate Issuers | Applied corporate finance |
| Equity Investments | Core valuation: DDM, FCFF/FCFE, multiples |
| Fixed Income | Valuing bonds, including embedded options |
| Derivatives | Pricing forwards, options and swaps |
| Alternative Investments | Valuation of real estate, PE and more |
| Portfolio Management | Risk, return and the portfolio context |
How the topics group
The valuation core at Level II is Financial Statement Analysis and Equity Investments, with Fixed Income and Derivatives close behind. The other topics support and apply to valuation. Ethics frames the professional context throughout. Confirm current weights with CFA Institute, as they are reviewed regularly.