The pass rate for CFA Level 2 is one of the most talked-about topics within a CFA aspirant’s circle. The CFA Level Two examination is the second hurdle in the three-tier Chartered Financial Analyst program. It focuses primarily on how investment valuation concepts are applied through item-set questions. The CFA Institute claims that the level 2 CFA pass rate has averaged around 44% in recent years but changes every year based on candidate performance and exam difficulty. It is vital for any candidate who is planning to sit for the examination to understand the CFA Level 2 exam format, difficulty, preparation strategies, and scoring system.
What is CFA Level 2 Pass Rate?
The CFA Level 2 pass rate is the percentage of candidates who pass the Level 2 exam in a particular year. The pass rate indicates how easy or difficult the exam is from the point of preparedness of the candidates.
Understanding the Numbers
The CFA Institute usually provides official passing rates after every examination cycle. The pass rate for CFA Level 2 has fluctuated between 40% and nearly 55% within the past 10 years. For example, in 2023, it was mentioned that 44% passed the exam, which is a bit above the historic average. Tougher than many other financial certification examinations, it puts the CFA in quite a unique position.
- Many students believe that CFA Level 2 vs Level 1 is a drastic change in difficulty. Level 1 focuses on the basics, but Level 2 emphasizes application. This means that the student must not only remember formulas but also apply them in complex cases.
- There is no passing score for CFA Level 2; it changes with every given test based on the performance of the candidates as a whole. The CFA Institute employs a methodology called the “Angoff Standard Setting” to determine a minimum passing score. Most experts believe that the standard lies between 65% and 70%.
- Thus, for anyone intending to set up their CFA Level 2 study plan, such an individual should know the importance of the pass rate for realistic expectations and goals.
CFA Level 2 Exam Format, Scoring, and Key Insights
The structure of the CFA Level 2 exam is more complex than Level 1. The exam tests a deeper understanding and ability to apply financial concepts in realistic scenarios.
CFA Level 2 Exam Format
The CFA Level 2 exam format includes item-set questions. Each item set consists of a vignette (case study) followed by 4–6 multiple-choice questions. There are 22 item sets in total. Candidates face 11 in the morning session and 11 in the afternoon. Unlike Level 1, where each question stands alone, Level 2 questions are linked to the vignette. This means understanding the vignette well is key to answering correctly. Each question is worth the same. There is no penalty for wrong answers, which encourages candidates to answer all questions, even if unsure.
CFA Level 2 Scoring System
The CFA Level 2 scoring system is based on correct answers only. All questions carry equal weight. The CFA Institute does not release the exact passing score, but it is estimated to be around 65-70%. Performance bands indicate candidate strength in each topic area.
CFA Level 2 Topics Weightage
Topics vary in importance. Here’s a table of the CFA Level 2 topics’ weightage (approximate):
| Topic | Weightage (%) |
| Ethics and Professional Standards | 10 – 15% |
| Quantitative Methods | 5 – 10% |
| Economics | 5 – 10% |
| Financial Reporting & Analysis | 10 – 15% |
| Corporate Finance | 5 – 10% |
| Equity Investments | 10 – 15% |
| Fixed Income | 10 – 15% |
| Derivatives | 5 – 10% |
| Alternative Investments | 5 – 10% |
| Portfolio Management | 10 – 15% |
Level 2 Pass Rate CFA: Trends and Predictions for 2024
The level 2 pass rate of the CFA shows trends that help predict future performance. Candidates must stay informed about changes in these trends.
Historical Pass Rate Trends
In earlier years, pass rates were relatively stable around 45-50%. However, after the pandemic, numbers dropped significantly. For example, in 2021, the pass rate fell to 29%, the lowest ever recorded.
- Many believe this drop happened due to disrupted preparation schedules, new exam formats, and increased candidate stress.
- In 2023, the number improved slightly to 44%. Experts believe that with better adjustment to the new CBT (computer-based testing) model, the CFA Level 2 success rate will continue to rise.
Predictions for 2024
Considering increased awareness, better preparation resources, and improved CFA Level 2 exam strategy, the 2024 pass rate is expected to hover around 45%–50 %.
Factors that can influence the trend:
- Number of registered candidates
- Global economic conditions
- Exam difficulty levels
- Performance on CFA Level 2 mock exams
Candidates must follow updates from the CFA Institute to track changes in the CFA Level 2 result date and other timelines.
How Hard Is CFA Level 2 Compared to Level 1?
Understanding the CFA Level 2 difficulty is key to preparing for it effectively. Many consider Level 2 to be the hardest among the three CFA levels.
Difficulty Jump from Level 1 to Level 2
CFA Level 2 vs. Level 1 is not just about content depth. The format, question style, and focus change significantly. Level 1 focuses on basic concepts and definitions. In contrast, Level 2 expects candidates to apply these concepts in complex real-life investment scenarios.
- The CFA Level 2 exam difficulty also stems from the volume of material. The CFA Level 2 syllabus covers the same ten topics as Level 1 but in far more depth. Candidates must remember and apply concepts, not just recall them.
- Item-set questions make the exam more time-consuming. Candidates must read long vignettes and answer multiple related questions.
- Additionally, candidates often struggle with topics like fixed income and derivatives due to their mathematical and technical nature.
- Preparation becomes harder as many candidates juggle full-time jobs with studies. Therefore, setting realistic goals and understanding the CFA Level 2 exam pattern become crucial.
CFA Level 2 Study Plan and Time Management Tips
A strong CFA Level 2 study plan improves the chances of clearing the exam on the first attempt. The recommended CFA Level 2 preparation time is 300–350 hours.
Time Management Strategy
- Start at least six months in advance. Break down the study hours into weekly goals. Focus on one topic at a time to build depth.
- Use the first 4 months to finish the reading. Use the next month to solve the CFA Level 2 mock exams and review weak areas. Spend the last month revising and solving CFA Level 2 question types like item sets.
- Study sessions must be around 2–3 hours daily, with weekly revisions. Use official CFA materials for accuracy and updated information.
Useful Resources
- CFA Institute Curriculum
- Plutus Education
- Kaplan Schweser
- Wiley CFA Prep
- FinQuiz
- AnalystPrep
Stick to a routine and practice discipline. Follow active recall and spaced repetition for better memory retention. Candidates who follow a structured CFA Level 2 exam strategy score better on the exam day.
Common Mistakes to Avoid in CFA Level 2 Preparation
Many candidates underestimate the exam due to their CFA Level 1 success. Avoiding common mistakes can significantly improve scores and increase the CFA Level 2 pass percentage in 2024.
Overconfidence and Poor Planning
Skipping topics or focusing only on high-weight topics backfires. The CFA Institute can increase the weight of any topic. Prepare all subjects thoroughly. Avoid last-minute preparation. A rushed study plan leads to weak concept clarity and poor exam performance.
Neglecting Practice Questions
Understanding theory is not enough. Practicing CFA Level 2 question types like item sets is essential. Vignette-based questions test multiple concepts together. Use topic tests and CFA Level 2 mock exams to check readiness.
Ignoring Ethics Section
Many candidates score poorly in ethics. This section has a significant impact if your overall score is near the passing mark. Mastering ethics improves chances of crossing the CFA Level 2 passing criteria. Use detailed notes and practice ethics scenarios regularly.
Level 2 Pass Rate CFA FAQs
1. What is the CFA Level 2 passing score?
The CFA Institute does not disclose the exact score, but most experts believe it lies between 65% and 70%, depending on overall candidate performance and the difficulty of the exam.
2. What is the CFA Level 2 result date?
The CFA Level 2 result date is usually released 6–7 weeks after the exam. Candidates can check the result via the CFA Institute portal.
3. How long should I prepare for CFA Level 2?
The average CFA Level 2 preparation time is around 300–350 hours. Starting preparation at least 6 months in advance is recommended for practical study.
4. How to pass CFA Level 2 effectively?
To know how to pass CFA Level 2, focus on reading all topics, practice with mock exams, stick to a study schedule, and set multiple-choice questions regularly.
5. What is the CFA Level 2 exam pattern?
The CFA Level 2 exam pattern includes 22 item sets (vignettes), with multiple-choice questions linked to each vignette. Candidates must complete these over two sessions in a single day.
