1500 Questions | CFA Program Level II 2026
Course Overview
What You'll Learn
- Investments (35%): Comprehensive coverage of Fixed Income, Bond Valuation, and the complexities of Stock Market Equilibrium.
- Ethics and Professional Standards (15%): Deep dive into the Code of Ethics, GIPS, and Standards of Professional Conduct.
- Equity (15%): Advanced valuation models including P/B Ratios, Enterprise Value (EV), and the Security Market Line.
- Portfolio Management (12%): Focusing on the Sharpe Ratio, Active Management, and Factor-based investing.
- Quantitative Methods (10%): Mastering Time Series Analysis and Option Pricing models like Black-Scholes.
- Corporate Issuers (8%): Analyzing Capital Structure, Cash Flow Forecasting, and Share-based payments.
- Alternatives (7%): Exploring Hedge Funds, Private Equity, and Commodity Markets.
About This Free Course
Detailed Exam Domain Coverage: CFA Program Level II
The CFA Level II exam is widely considered the most challenging hurdle in the Charterholder journey, focusing heavily on asset valuation and the application of investment tools. This practice test bank is meticulously mapped to the official curriculum weightings:
Investments (35%): Comprehensive coverage of Fixed Income, Bond Valuation, and the complexities of Stock Market Equilibrium.
Ethics and Professional Standards (15%): deep dive into openai models master o3 o4 mini beyond the Code of Ethics, GIPS, and Standards of Professional Conduct.
Equity (15%): Advanced valuation models including P/B Ratios, Enterprise Value (EV), and the Security Market Line.
Portfolio Management (12%): Focusing on the Sharpe Ratio, Active Management, and Factor-based investing.
Quantitative Methods (10%): Mastering free time series analysis hands on projects advanced techniques course and Option Pricing models like Black-Scholes.
Corporate Issuers (8%): Analyzing Capital Structure, Cash Flow Forecasting, and Share-based payments.
Alternatives (7%): Exploring Hedge Funds, Private Equity, and Commodity Markets.
Course Description
I have built this resource specifically for candidates who want to move past the "theory" and master the "application" required for the Level II exam. With 1,500 original practice questions, I provide the high-volume repetition necessary to handle the 250-question, 165-minute pressure cooker.
In the CFA Level II journey, the "why" is just as important as the "how." That is why I include a granular explanation for every single option in this bank. I break down the quantitative formulas and the qualitative ethical nuances so you can walk into the testing center with the confidence needed to hit that passing score on your very first attempt.
Sample Practice Questions
Question 1: According to the CFA Institute Standards of Professional Conduct regarding "Inside Information," which action is most appropriate for a Charterholder who receives material nonpublic information?
A. Execute a trade immediately before the information becomes public to maximize client gains.
B. Share the information only with immediate family members who are not in the industry.
C. Refrain from trading or inducing others to trade on the information.
D. Post the information on an anonymous forum to make it "public" quickly.
E. Use the information to offset losses in a struggling portfolio.
F. Only trade if the information was received from a secondary source.
Correct Answer: C
Explanation:
C (Correct): Standard II(A) prohibits members who possess material nonpublic information from acting or causing others to act on that information.
A (Incorrect): This is a direct violation of insider trading standards.
B (Incorrect): Tipping off others, even family, is a violation.
D (Incorrect): "Public" status requires official dissemination through recognized channels; anonymous posts do not count.
E (Incorrect): The intent (offsetting losses) does not excuse the violation.
F (Incorrect): The source (primary or secondary) does not matter if the information is material and nonpublic.
Question 2: When utilizing the Black-Scholes Model for option pricing, what is the impact of an increase in the underlying asset's volatility?
A. The price of both call and put options will increase.
B. Only the price of the call option will increase.
C. The price of both call and put options will decrease.
D. The volatility has no impact on the option price.
E. The call option price increases while the put option price decreases.
F. The price of the underlying asset will automatically drop.
Correct Answer: A
Explanation:
A (Correct): In the Black-Scholes model, higher volatility increases the probability of the option ending up "in the money," thus increasing the premium for both calls and puts.
B & E (Incorrect): Volatility is a "vega" component that positively affects both types of options.
C & D (Incorrect): These contradict the fundamental mechanics of option Greeks.
F (Incorrect): Volatility is an input for the option price, it doesn't dictate the immediate price movement of the underlying asset itself.
Question 3: A portfolio manager calculates a Sharpe Ratio of 0.85 and an Information Ratio of 0.40. What does the Information Ratio primarily measure in this context?
A. The total return of the portfolio divided by total risk.
B. The active return of the portfolio relative to its tracking error.
C. The risk-free rate of return available in the market.
D. The amount of systematic risk (Beta) in the portfolio.
E. The tax efficiency of the investment strategy.
F. The ratio of dividends to the current stock price.
Correct Answer: B
Explanation:
B (Correct): The Information Ratio measures the ability of a manager to generate "excess returns" (Alpha) relative to a benchmark, adjusted for the volatility of those excess returns (tracking error).
A (Incorrect): This describes the Sharpe Ratio (using standard deviation).
C (Incorrect): This is an external market input, not a portfolio performance ratio.
D (Incorrect): This refers to Beta, not the Information Ratio.
E & F (Incorrect): These are unrelated to the calculation of active management performance metrics.
Welcome to the learn gcp professional data engineer mock exams practice tests Academy to help you prepare for your CFA Program Level II Practice Tests.
You can retake the exams as many times as you want
This is a huge original question bank
You get support from instructors if you have questions
Each question has a detailed explanation
Mobile-compatible with the Udemy app
30-days money-back guarantee if you're not satisfied
I hope that by now you're convinced! And there are a lot more questions inside the course.
Who Should Take This Course
"1500 Questions | CFA Program Level II 2026" is aimed at people who want a practical, structured introduction to development without paying full price for it. It's a solid fit if you're starting out in development and want a guided course rather than piecing tutorials together yourself, if you've tried free YouTube content on the topic and want something more organized, or if you already work in a related area and want a refresher you can finish at your own pace. Since enrollment happens on Udemy itself, you keep full access to view the lectures, download any provided resources, and revisit the material later â this isn't a stripped-down or time-limited version of the course.
Why This Course Is Worth Taking
Our take: this listing earns a spot on FreeWebCart because the coupon we verified actually brings the price to $0, not just a token discount, and the course carries a 4.5/5 rating on Udemy. That combination â real reviews plus a working 100% OFF code â is what we look for before publishing a development course. It won't replace hands-on experience or a full degree program, but as a low-risk way to test whether development is worth pursuing further, or to pick up one specific skill, the free price tag makes it an easy yes while the coupon lasts.
Pros & Cons
đ Pros
- 100% free to enroll via this coupon (normally $109.99)
- Lifetime access on Udemy once enrolled, even after the coupon expires
- Rated 4.5/5 by past students on Udemy
- Self-paced â no fixed schedule or live sessions to attend
đ Cons
- Coupon is time-limited and can expire before you enroll
- No live instructor support â questions go through Udemy's Q&A, not us
- Certificate is a Udemy completion certificate, not an accredited qualification
Frequently Asked Questions
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