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             Study Tips for Level 2             

(Last updated on 18 Sept 2004)

  Major Changes in 2005 curriculum

In 2005 L2 curriculum, the official assigned readings are similar to those of 2004 curriculum. There are new editions for a few textbooks, including CFA Level II Candidate Readings , The Analysis and Use of Financial Statements , and Investment Analysis and Portfolio Management .

  Analysis on the changes in LOS for 2005 curriculum:

What's New for 2005 Curriculum

  Passing Rates of L2 exam in recent years:

  Exam hints:

Schweser L2 Exam tips 2004 (from cfa101.com)
Stalla L2 Exam Hints 2003
Schweser L2 Exam tips 2002

  What did candidates say about their experiences with L2 exam?

Thoughts on L2
Was it Brutal?

  Errata List of Schweser Notes 2003:

Schweser Notes Errata 2003

1. The Content 

- Which topic is the hardest? And How to focus your study?    

  Rule of thumb: Don't screw up easy marks. This is going to sound stupid, but it's the key. Don't blow the easy shit. Last year, one of the equity questions was a simple valuation using FCFE. Somehow many people overlooked it while studying, just thinking I knew it, and blew it on the exam. 

  Easy Marks: Clean up on the Quant, it's easy marks. Equity is the same. Portfolio management is basically a repeat of level I, ace it.

  The hard times: Most people find Derivatives, Fixed Income Sec, and Accounting difficult and got nailed.

  Priorities: Give priorities to those easy parts in your study (effort & time). Don't blow your brains out on tougher concepts if passing the examin is your only goal (more tough the topic, the lower the chance it come up in the examin) .

Norman's Comment: If you already got a finance master degree or MBA with finance major, you'll find those derivatives or debt questions are much easier than you learned in the classes. So be confident in doing these sections. 

2. Use Schweser's Hint Sheet as your check list for study

Schweser had given its well-known "most probable examin topics" every year for free. Since 2003, it is no longer available for all of us. Nevertheless, you can still have some clues about 'most probable exam topics' from Schweser's weekly tips:

 
May 13, 2004

May 6, 2004

Apr. 29, 2004

Apr. 22, 2004

Apr. 14, 2004

Apr. 14, 2004

Apr. 7, 2004

Mar. 31, 2004

Mar. 24, 2004

Mar. 17, 2004

Mar. 10, 2004

Mar. 3, 2004

Feb. 25, 2004

Feb. 19, 2004

Feb. 11, 2004

Feb. 4, 2004

Jan. 28, 2004

Jan. 21, 2004

Jan. 14, 2004

You can sign up for Schweser's latest "Tip of the Week" from HERE.

3. Points to Note

  In 2005, it is the first time we are tested in all multiple choice format. We should prepare to see anything unexpected come up in the exam, for example the question style, content or whatsoever.

  The pass rate of L2 hit the historical low in 2004 - at 32% . It seems to me that CFAI has the intention to cut the pass rate to a level that they are comfortable with. You may ask at what level of the pass rate CFAI would be comfortable with. I expect that CFAI will continue to press the pass rates until the number of CFA candidates is going steady, in order to avoid the devaluing of the CFA charter because of the surge of no. of charter holders.

  In last exam of June 2004, the real exam topic weightings are not straightly consistent with those given in the official study guide. We should be aware of this.

 

If U have any notes/study outlines, e-mail them to me. I will post them on the net for free download.

Comments or suggestions? Please e-mail me at normanhk01@yahoo.com.hk

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