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Questions in CFA Level II Exam are not very difficult/ different from Level I. The prime difference is that they are related to (one case and) one subject/ topic and unless you completely understand that topic and the question (Case statement) correctly, you can just do the full case wrong. On the flip side, if you understand the case statement well and attempt the question with a cool mindset, the chances of getting all questions related to a case correct are very high.

To start preparing well for Level II CFA Program, I advice the following:

  1. Find the story in a topic
  2. Find the thread that connects the questions
  3. Try to find the kind of questions that are asked in the exam
  4. Make sure that understand and remember the key points

For example, if you are preparing for Quant – Story:

  1. Everything is related to “explaining one variable on the other”. If its cross sectional regression analysis, then x is explained by y. If its time series, then x is explained by “t”.
  2. Check for hypothesis that the relationship (linear) is significant
  3. There are assumptions behind the explanation – a) Errors are independent, b) Errors are homoskedastic c) Errors are normal
  4. Check the assumptions thoroughly

General Questions:

  1. Can you understand the relationship between independent and dependent variable?
  2. Can you check for the significance of relationship?
  3. Can you understand the assumptions and know when they are being violated? Do you remember the tests to check so?
  4. Are there any corrective measures?

If you remember the “Big Picture” and the tools to decipher the big picture I am sure you can crack the code for the full exam.