CFA Level 2 Cheat Sheet

We’ll share our complete CFA level 2 Cheatsheet for free for a limited time only.

The guide includes everything you need to know in order to ace the level II of the test:

I. Quantitative Methods

Introduction to Linear Regression
Linear Least Squares
Test Static for Slope Coefficient
Test Static for Correlation Coefficient
Test Static for the Intercept
Prediction Interval
Log-Lin Model
Lin-Log Model

II. Economics

Currency Exchange Rates
Covered Interest Rate Parity
Market-to-Market Value of a Forward Contract
Uncovered Interest Rate Parity
Absolute PP
Relative PP
Ex Ante PP
International Fisher Effect

III. Financial Reporting and Analysis

Intercorporate Investments
Financial Assets
Investments in Associates
Acquisition Method
IFRS
US GAAP
Employee Compensation
Post-Employment and Share-Based
PBO

IV. Corporate Finance

Capital Structure
Dividends and Share Repurchases Analysis
Target Payout Adjustment Model (Lintner Model)
Constant Dividend Payout Ratio Policy
Share Repurchase
Analysis of Dividend Safety
Mergers and Acquisitions
Comparable Company Analysis

V. Equity Valuation

Equity Valuation Applications and Process
Return Concepts
Gordon Growth Model
Ibbotson - Chen Model
CAPM
Fama-French Model

VI. Fixed Income

The Term Structure and Interest Rate Dynamics
Forward Pricing Model
Forward Rate Model
Calculating Spot Rate from One-Period Forward Rates
Fixed Swap Rate
Swap Spread
TED Spread
Ho-Lee Model

VII. Derivatives

Pricing and Valuation of Forward Commitments
Forward Valuation (Long Position)
Forward Rate Agreement (FRA)
Fixed Income Forwards and Futures
Interest Rate Swaps (IRS)
Currency Swap
Equity Swap

VIII. Alternative Investments

Real Estate Investments
Appraisal-Based Index
Highest and Best Use
Direct Capitalization Method
Discounted Cash Flow Method
Private Market Real Estate Debt
Net Asset Value Approach
Funds from Operation
Adjusted Funds from Operations

IX. Portfolio Management

Exchange-Traded Funds: Mechanics and Applications
Using Multifactor Models
Arbitrage Pricing Theory (APT)
Carhart Four-Factor Model
Measuring and Managing Models
Parametric VaR (Using Normal Distribution)

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The MIM Prep Team