What is the recommended approach for studying for the fixed income section on the cfa level 2 exam?

In my humble opinion, priority should be given to FRA and then to equities, corporate finance and fixed income. Ethics is something you can do in the end, but please make sure you practice enough problems. The CFAI is a good study guide for fixed income. Elan is brief and useful if you have read the CFAI text or have experience in FI.

This is especially useful if you know the basics but don't have time to cover the details. You can spend a week instead of 3 weeks using Elan. There is significant overlap here between levels 1 and 2, and the readings focus primarily on bond valuation. This familiarity helps you dive into this topic, making the jump from level 1 to level 2 of the CFA more manageable.

Remember that, in the case of candidates who consider themselves to be marginal, the CFA Institute will refer to the candidate's ethics score, so it is imperative that this issue be given the priority it deserves. As CFA exams become computer-based tests, the CFA Level 2 exam includes a total of 88 multiple-choice questions, 44 in SESSION 1 and 44 in SESSION 2.It is based on level 1 in the areas of capital budgeting (NPV and TIR) and also on a new topic of corporate restructuring. In addition, the order of the topics in your level 2 curriculum does not change compared to the level 1 curriculum. Most of the ethics of level 2 is exactly the same as that of level 1, except that it does not cover the GIPS and there is additional reading about the standards of research objectivity.

There are other readings that were not addressed in the Level 1 curriculum, but they tend to be relatively accessible to most candidates. However, we think there might be something better to improve your chances of success, given the amount of materials you need to complete at this level. Part of this topic is based on level 1, such as the Markowitz minimum variance model (often referred to as the efficient frontier model) and the calculation of portfolio risk using two and also three assets. The good news is that the CFA Institute has confirmed that the design of the readings for each study session is not based on the assumption that the candidate approaches the study sessions in a certain order.

Serena Lubahn
Serena Lubahn

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