CFA Level II Previous Year Question PapersWith solutions

Ethical and Professional Standards (10-15%)

Code of Ethics and Standards of Professional Conduct, Application of the Standards to case scenarios, Research objectivity and conflicts of interest

Quantitative Methods and Economics (5-10% each)

Multiple regression and model misspecification, Time-series analysis, Machine learning and big data projects, Currency exchange rates and parity conditions, Economic growth

Financial Statement Analysis (10-15%)

Intercorporate investments, Employee compensation and pensions, Multinational operations, Analysis of financial institutions, Evaluating quality of financial reports, Integration of financial statement analysis techniques

Corporate Finance (5-10%): Analysis of dividends and share & Capital structure

Analysis of dividends and share repurchases, Capital structure, Corporate restructuring, Environmental, social and governance considerations, Cost of capital

Equities (10-15%): Industry and company analysis & Discounted dividend valuation

Industry and company analysis, Discounted dividend valuation, Free cash flow valuation, Market-based valuation: price and enterprise value multiples, Residual income valuation, Private company valuation

Fixed Income (10-15%): Term structure and interest rate dynamics & Arbitrage-free valuation framework

Term structure and interest rate dynamics, Arbitrage-free valuation framework, Valuation of bonds with embedded options, Credit analysis models, Credit default swaps

Derivatives and Alternative Investments (5-10% each)

Pricing and valuation of forwards, futures and swaps, Option valuation with binomial and Black-Scholes-Merton models, Real estate investments and REITs, Private equity valuation, Hedge fund strategies, Commodities and commodity derivatives

Portfolio Construction (10-15%): Economics and investment markets & Multifactor models

Economics and investment markets, Multifactor models, Measuring and managing market risk, Backtesting and simulation, Active management