LII

lev

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Looked through topic weights for LII. Ethics, Econ, and Quant are trimmed somewhat while FSA, Asset Val, and PM gain further weights. I think LII is going to be all about Asset Val.

Also ... a strange thing... it looks like the questions may have six (multiple) choices instead of four. Can someone either confirm or reject this?



Edited 1 time(s). Last edit at Friday, June 9, 2006 at 05:26PM by lev.
 
There aren't six choices; they come in sets of six questions (but each question has only four choices). You get a half-page to two page blurb, and then there are six questions pertaining to it. You'll have 10 item sets (60 questions total)in each session.

Definitely know your FSA and Equity Valuation cold going into LII or you'll be in deep doo-doo.
 
From what I hear, question sets are chained together -- can't answer 2 without 1, can't answer 3 without 2, etc. Don't want to scare everyone but I here L2 is the toughest, L3 is actually easier if you can get there.
 
I personally know people who have sat for all 3 exams. One of my colleagues has stated that level 2 is a tough, but not bad and another friend who has his FRM and level 2, as well as sat for level 3 said just be sure to study enough. He said people fail because they don't study enough at any level.

Level 2 is still more quantitative and is tougher "to get" than level 1. Conceptually the hardest stuff is probibly derivatives and quant, which I have taken at the university level (same material), in 4th year courses and if you got level 1 well, this material shouldn't be too hard.

Level 3 can be tough because it's more qualitative. I also met 2 level two individuals at the exam and asked "Honestly how is level 2" and they just glanced at each other and with a confidence basically said "it's just more things to remember". I think it comes down to whether you get it or not and if you do, you just have to pack more stuff into your brain and apply it for a few hours on a saturday.
 
The questions are not usually linked to teach other, just all to the scenario. There were a few questions in quant where you needed to build on the questions, but, thankfully, that was not usually the case. A lot of the item sets would have one or two questions that were not even directly contingent on the scenario, but were theoretical questions based on the topic involved (but not the data).

LII is definitely harder than LI ( I wrote LII this year, so I know whereof I speak), but I agree with jamespucyk's friend that it is largely a factor of more material. It also requires a deeper level of understanding, as the questions tend to be more complex and require a synthesis of different LOS's. The absolute best preparation for starting the LII material is a very good grasp of LI. If you are shaky on the LI material, LII will be a much bigger challenge.

To be honest, the derivatives and quant were not that difficult conceptually. I think that the people who have the most diffculty with derivatives, ironically, seem to be people with a deep background in math. They concentrate too much on the complicated formulas rather than just trying to understand what the product is and how to break it down into it's composite pieces. I truly believe that if you can understand a simple call, put, stock and bond, you can pretty much figure out any derivative.

The toughest parts for me were fixed income and FSA. Fixed income just because of the information overload, and FSA because of all the interrelationships.
 
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