Vignette Structure

This will be my first pass at Level 2, pun (hopefully!) intended. I’m only about 50% through the material, as I didn’t have time to start earlier as I was working 70 hour weeks up until the middle of march. My question is this: Do the vignettes with six questions each focus solely on a single topic area? For example, one item set that tests solely on FRA, another item set that tests solely on Econ, etc… OR are the vignettes structured in a way that questions can be asked from multiple subject areas? For example, one item set could have 2-3 questions on FRA, with another 2 questions on Econ, and one on Ethics? If anybody can shed any light on the structure of the vignettes it would be greatly appreciative.

yes and no. they should and most do focus on 1 topic area but i remember have a vignette with 2 different subjects. i would be prepared for such.

CFA Jay, Thanks for the response. While I would certainly expect there to be at least somewhat of a mixed bag on the item sets, I guess I was just going for a general feel. To clarify, would it be a dangerous assumption that a vignette would cover something like Intercorporate Investments where one would have to answer questions regarding the categorization of assets, then make calculations based on the Equity Method, Proportionate Consolidation, and the Acquisition Method, etc…? Where the vignette is zeroed in around one topic, with the added possibility of maybe a question that isn’t in FRA? Thanks!

It’s a safe assumption that some vignettes will have questions from related readings. While there could be a vignette solely devoted to compensation, there is a strong possibility that a vignette will test us on intercorporate + multinational + LIFO/FIFO. They could even throw currency translations with triangular arbitrage on the same vignette. Another example could be combining the Investment Policy Statements reading in PM with Ethics. And so on… I wouldn’t worry too much about the stucture of vignettes per se. I am just worried about retaining the material right now and being prepared to answer them on any vignette.

I agree it is a yes and no answer. Generally they only relate to the topic covered. However, given the nature of the curriculum where there is a lot of overlap, it is not uncommon to find topics that appear to be from a different section. For example: - Equity question about EVA that requires you to calculate WACC (linked with Corp Finance) - Equity question about Residual Income Valuation and to incorporate the proper accounting adjustments (linked with FSA) - Alternative Inv question on the GIPS recommended measure of portfolio returns (linked to Ethics)