Topic Coverage on L II Exam

I was just curious as to how much of the material that we are studying right now, will actually be tested on the L II exam. I can say that most of what I studied for L I showed up. However, with L II, I think it seems like a completely different story. We have 10 item sets per exam session (6 questions per item set). I just can’t help to think how much of the material can they actually squeeze into 20 item set questions, considering the volume of material, and the actual topics presented for each reading. Just think, we have 72 readings, and each reading has multiple topics. There is probably quite a lot of material that will not appear on the exam. Saying that, maybe the repeating LII candidates and those who have taken it before, can shed some light on whether they felt the exam concentrated on certain topics.

I don’t remember the exact % of what showed up or not, but you’re right. There are many different topics that we studied last year didn’t show up in the test. One of the most surprising topic I strongly studied which did not show up was in Economics (Triangular and parity relations). Also, some of the topics tested last year had very minimal coverage in study materials. For example, dummy variable had one LOS and they had an item set on the test on dummy variable. Also, the infamous Treynor Model. In conclusion, study everything, even if you don’t think it may show up in the exam, cause it very might well.

a whole item set on dummy variables? wow, that is pretty mean. i guess they can focus on whatever they want, which is just plain scary considering the amount of potential stuff that could be tested. i’m reviewing equity today and was doing all of the end of chapter questions in the CFA books- in reading 40 there were like 3 or 4 questions on inflation pass throughs and P/E. I’m mainly reading schweser and sure, it’s there in the LOS and maybe there was 1 little concept checker on it, but heck if I remembered that little formula or thought it was anything really worth remembering. Once I looked it up, easy peasy and hopefully I’ll remember it going forward, but this does make me very nervous that the little things might wind up being very important. UGH. bigger picture in equity at least- having studied mainly schweser, i’m not finding huge holes of knowledge now while doing the CFA questions. *whew* i’m now actually reading the CFA materials on FCFF/FCFE since I think it’s maybe the toughest part of equity- you’d have to think that it’d almost be a lock for at least a good part of an item set, no?

Yup, FCFF/FCFE was on the test last year, and probably would be again this year.

thx for the insight… and shoot me now. i’ve been studying all day and am ready to bang my head against a wall. i think it’s almost time for me to turn on some really trashy tv or read us weekly. brit’s kids, “the littlest victims”…a girl’s gotta have a few guilty pleasures, and CFA studying sure isn’t one of them.

hear hear!! my break involves shopping on Arden B. And speaking of trash tv, isn’t the awards on today?

Any thoughts on the fact that in the CFAI material (particularly FSA) only about half of the readings have questions at the end? Any correlation to what is on the actual test?

I wouldn’t take having no questions at the end as an indication that the reading wouldn’t be tested (might actually be the reverse?) I remember for Level I, I spent a lot of time on FX Parity Relations, etc (the only readings in Econ that had any PP), and nothing showed up on the exam. All the econ questions for L I came from the readings that didn’t have any PP. However, I think there are a few topics that can be categorized as a sure bet or high-probability test material. I think they are: Pension Accounting Multinational Operations Asset Valuation (a question on P/E calculation) DDM/FCF/Residual Income I can’t think of any other that are sure bets. Both Pension accounting and MNCs are important topics in the industry today. Either one will show up on the exam. Also FCF Valuation models are a must know for any analyst; and knowledge of P/E is pretty much a standard nowadays. So if 3 of the above important topics show up, that’s 3/20 (15%) of the exam. Regarding the other 17 remaining item sets…I guess that’s any body’s guess…