Differences between Level I and Level II

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STOCHTERMAN

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I am just beginning my CFA journey and am preparing for Level I exam. For those of you who just completed the Level II exam, can you tell me what are the biggest differences in terms of preparation between Level I and Level II - and the differences in curriculum contents? I have heard Level II is more difficult and more “quantitative / formula driven” in nature but want to verify. Any insight would be helpful. Thank you.
 
Firstly, don’t worry too much about level 2 at this point in your time. Give it your all to level 1.
Secondly, yes, level 2 is insanely “formula intensive”. I would not say quant intensive because all the math “required” to do the exam is basically 6th-7th grade math at best.
At level 1, you need to “know” all the concepts.
At level 2, you need to “know” and see the “links” among different concepts. Level 2 will open your mind vastly as it will require “analysis”.
 
I love the dragon analogy. I have seen it before on the boards and it gets me every time. I agree with Finkin, put all of your energy into L1. If you are anything like me, you will need to learn how to study again. Take notes, write flashcards, start early. Focus on L1.
 
Dont worry about level II as you will have plenty of time to do that only if you pass level I.
 
I don’t like that the 3rd level dragon looks smaller than the 2nd unless it breathes intense fire–though a hilarious analogy. I’ve failed that 3rd beast 2 times and maybe a 3rd. Level II is hard, tons of formulas, but pulling EVERYTHING together in level III is unreal and daunting. level 3 is godzilla.
 
L3 is a sneaky bastard. If I had to choose one of the 2 to retake, I would choose L2 no doubt.
 
It is a big step up from L1 material.
For me this is how I view each level
L1: Covers an undergrad finance program (probably more in depth too unless you happened to be in a very finance centric and rigored program)
L2: L1 topics plus a vast array of compliance, legal, and advanced formulas needed to make an investment decision. Note that L2 mostly focuses on valuation of all types of assets and as someone said above me, they test your knowledge of being able to link one theory to a formula or theory to action and are aware of necessary steps to take to give a proper answer
L3: (Although I have yet to take this) focuses on L1 + L2 but is much more formula intensive on financial instruments, economics and giving a recommendation in PM terms. Seeing as how nearly 50% of the exam is PM, it’s basically asking you if you know how to construct a portfolio of varying securities and reasoning behind each inclusion / exclusion theoretically and mathematically.
 
I felt Level 1 was more calculative in the sense they would require you to know how to calculate, say Duration, but Level 2 was more conceptual and theortical requiring you to interpret Duration. Not sure about L3.
 
I think I sat for a different exam, Sid.
Never had to study and apply that many formulae!
 
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