CFA Level 2 Notes (Grade A)
Summary:
The CFA Level 2 curriculum focuses on the application of investment tools and concepts in the valuation of different types of assets. The topics covered in CFA Level 2 include:
- Ethical and Professional Standards
- Quantitative Methods
- Economics
- Financial Reporting and Analysis
- Corporate Finance
- Equity Investments
- Fixed Income
- Derivatives
- Alternative Investments
- Portfolio Management and Wealth Planning
The level 2 curriculum builds on the knowledge gained in level 1 and goes deeper into the analysis and valuation of different asset classes. For example, in financial reporting and analysis, the focus is on analyzing financial statements in detail to make investment decisions, while in equity investments, the focus is on equity valuation models and the analysis of financial statements to identify potential investment opportunities. The CFA level 2 exam consists of item sets (also known as mini-cases), which are questions that require candidates to apply their knowledge to real-world investment scenarios.
Excerpt:
CFA Level 2 Notes
Ethics
CHAPTER 1 Code of Ethics and Standards of Professional Conduct
Definition: Ethical vs. Legal: Ethical behavior is often distinguished from legal conduct by describing Legal behavior as ‘what is required’ and Ethical behavior as ‘conduct that is morally correct’. Ethical principles go
beyond that which is legally sufficient and encompasses what is the right thing to do.
CFA Level 2 Notes
The Standard tells you ‘What to do?’
The Code tells you ‘How to do it?’
Technique: IRAC Issue, Rule, Application, and Conclusion
CFA Level 2 Notes
Code of Ethics
- Act with integrity, competence, diligence, respect, and in an ethical manner.
- Place the integrity of the investment profession & client above personal interests.
- Use reasonable care and exercise independent professional judgment when conducting IRA (Investment Recommendation & Analysis) and engaging in other professional activities.
- Practice and encourage others to practice in professional and ethical manner.
- Promote the integrity and viability of the global capital markets for the ultimate benefit of society.
- Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.
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