CFA CFA Level 2 Concepts vs. Formulae – Which is more prevalent on Level 2?

Concepts vs. Formulae – Which is more prevalent on Level 2?

  • This topic has 6 replies, 2 voices, and was last updated Oct-18 by spatel15.
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    • spatel15
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      I feel like I keep hearing Schweser dudes mention the fact that we should focus on the concepts. I know there will obviously be some math based questions, but is it more about knowing the direction, and perhaps the sensitivity of inputs for the more detailed formulas?  I have the Quicksheet and see that it’s really filled with a plethora of variable-heavy formulae, so that overwhelmed me at first. FYI, I started studying about 4 days ago, so anything, anything would be much appreciated.

      For example of the type of daunting equations I’m speaking of: ARCH/Variance of ARCH(from Quant)? Target Payout Dividend Policy (I just hate this one)? Modern term structure models?  

      I have some areas down, but certain areas(Quant, Port. MGMT, any one of these weird dudes that felt the need to tweak a model and rebrand em – Pastor Strambaugh, Taylor Rule, Breusch Pagan, Dicky Fuller, Durban Watson) I am bit fearful of. I’m going to try out a test tomorrow, so I’ll follow up too haha.

      Stuff I’m not concerned about: Pension/Consolidation/Derivatives/Level 1 stuff

      Seriously, anything at all is greatly appreciated!

      Sameer

    • googs1484
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      The test is 60% conceptual and 40% mathematical. Meaning, 40% of the questions will require calculations. You will definitely want to know all of these you mentioned “Pastor Strambaugh, Taylor Rule, Breusch Pagan, Dicky Fuller, Durban Watson”.

      If you started studying 4 days ago, and are not a natural whiz with CFA subject matters, then I suggest you read the secret sauce by Kaplan, take a couple mocks, and then read the actual sections you lack on in the curriculum. The financial reporting, equities, fixed income sections are biggies and to need to get a lot of point there. Its too bad your not worried about derivatives because that’s a small part of the test! Don’t underestimate the pension stuff. Take some practice item sets on it before you get too confident.

      Lastly, if you really just started studying then don’t waste your time on this forum. The only words you should be reading are in those books!! I have put in a solid 650 hours into level II so if you pass and I don’t I will find you! ha ha jk

    • spatel15
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      Thanks for the tips! Didn’t mean to reject your answer, I just wanna keep em coming haha. Probably shouldn’t have set this up as a question.

      Just took a practice run at 50 FRA MCQ: 72% but that was with immediate feedback.

    • spatel15
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      Two more questions (next thread is going to be open ended to attract the crowds haha):

       1. What’s a healthy number number of MCQ to have complete by exam day? Disregard my start date, I’m looking for an average for someone who’s had time. Clearly, I’m gonna have to do an unhealthy amount haha, just looking for a quote before using some mock exams, dont want those to go to waste on an empty brain.

      2. What’s to verdict on Schweser MCQ vs. Vignettes in terms of timing? The few vignettes I just saw, though overwhelming to see, were much quicker than 6 individual MCQ’s. If I do the vignettes in a timely manner, does that do the trick, or should I aim to have both my individual MCQ’s and vignette questions below the time limit(1min/ or whatever).  

      Sorry I know these are dumb questions I could look up…but time is not on my side =/

    • googs1484
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      okay so let me be clear here….you should not be using Schwesers Qbank this late in the game. The questions are simply to test your subject matter knowledge after you complete a reading. They are not item sets. Their item sets in their MCQ Qbank are not even truly item sets and ARE NOT representative of the actual test item sets. 72% is on FRA is good for a first time around reading the material and to gauge where you stand if this were February, but its May. The item sets in the Qbank for Schweser are not real item sets. If you finish them quickly then thats nice but does not mean anything. I have gone through EVERY qbank question; every single one. The item sets in the qbank 80% of the time do not even use information in the item set. You could answer the questions without reading anything but the question! It You need to be taking actual mock exams to:

      1) see where you stand and so you know what specific readings to review. Focus on the large topics; FRA, equity, FI.
      2) Get an idea of the subjects tested and to what degree of granularity. It will help you not waste time on minutiae so you make sure you get the major topics. 
      3) experience! Item set execution needs a a strategic approach. You need to practice your strategy now, not 6/4th. 

    • spatel15
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      Beautiful response haha. That definitely helped a looot in terms of adjusting my strategy. Just finished reading Fixed Income. Going to take a stab at as much Equity I can do right now and take a mock tomorrow. I know my weak areas are going to be the Alternatives, Portfolio Mgmt, and Quant. I took the FAR cpa exam last august and did well, so I’m hoping FRA won’t bite me too hard, the readings definitely did not. Thanks again googs!

    • spatel15
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      Took an AM portion. Somehow pulled off a 71.67 lol. No confidence in my answers though.Starred about 26 of the 60… a lottta vocab freebies to pick up though so that’s good looking forward.

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