CFA^® Level 2 Online Classes

This topic is fundamentally similar to the standards studied in Level 1 itself. However, the complexity with regards to the questions in examination is obviously expected to be higher.

Practical Case studies pertinent to the Codes and Standards discussed in the Reading 1 & 2 are discussed here.

Linear Regression explains the change in one dependent variable in terms of the change in independent variable.

Multiple Regression refers to the regression analysis with more than one independent variable.

Time Series is a set of data points indexed in a time order. Discussion around calculation of trend value , identifications of violations such as heteroskedasticity, nonstationarity and serial correlation.

The statistician models discussed in the previous topics assume a set of assumptions about the distribution of the data points, whereas the ML is the process of preparing a computer system to identify patterns within a large database without relying on any complicated assumptions.

Big Data refers to the humongous volume of information available due to the modern technology. The topes focuses on the basic understanding the same including, terminology, processes and techniques.

Discussion about the utility of simulations as a risk assessment tool.

Discussion about base currency and quote currency, bid-ask spread, international PPP etc. This is a very testable portion in exam involving a lot of number crunching.

Economic growth is measured by growth in a country's GDP. This topic discusses around the factors promoting/curtailing growth and forecasting growth. Overall, its an important topic in order to develop an overall viewpoint on the economy.

Regulations in an economy play a key role in the economic growth and valuation of an enterprise. This theoretical focuses on broad understanding of the types of regulations and its implications thereof.

This chapter teaches us the accounting principles for holding, joint venture and associates.

Post Employment Compensation refers to the super annuation benefits. Share based payments includes the SARs and ESOPs.

Discussion around local currency, functional currency and presentation currency and its relevance for multinational companies.

Accounting / Valuation of Financial Institutions (Banks, NBFCs and Insurance Companies) is peculiar in nature. This topic focuses on the same.

CFA L2 curriculum focuses on the valuation aspect of the securities. If the quality of the financial reports are compromised, the end result would not be reliable either.

This topic is a bridge between FRA and equity/corporate finance.

Capital Budgeting Decisions involve decisions pertaining to the long term capital allocation of an entity. Coverage: Calculation of NPV, IRR, Decision, Scenario Analysis and Decision Making.

This topic discusses various capital structure theories and its impact on the overall value of the firm.

Disbursement of the profits realized by an entity is a critical decision. This topic explores various theories of dividend policy and stock buybacks.

Corporate Governance is the first and foremost eligibility requirement for the security of a company to be investable Similarly, ESG (environmental, social and governance factors) also play a critical role in the analysis of the company.

This topic performs an in-depth review of the corporate finance piece of the M&As. Its important to understand the accounting piece of the events post M&A had already been discussed in the topic 13.

This chapter provides a glimpse into the "equity" portion of the CFA L2 Curriculum.

Computation of the different types of return including HPR, returns based on CAPM, Fama Fench Model etc.

This topic focuses on the qualitative aspects of valuation framework and lays the foundation for the number oriented topics ahead in the curriculum.

Dividend Models utilize the forecasted dividends as an estimate of the cash flow to the shareholders. In this topic, we note various models around dividend decision of an entity.

Residual cash in the business in the hands of firm (bondholders and equityholders) is termed as FCFF. Similarly, residual cash is the hands of the equityholders is termed as FCFE. FCF is the single most important factor in computing the intrinsic value of an enterprise.

Multiple Based valuation relies on the comparable (either price or transaction) to identify the value of the enterprise in question.

This is yet another methodology to perform the valuation of an enterprise - although, the practical utility is industry is quite limited, but the testability from exam perspective is pretty relevant.

Broad discussion on the adjustments required in the methodologies discussed thus far to suit the needs of valuing a private company.

This topic lays the foundation for the fixed income subject. 1. Basics of interest rate term structure and its effect on the bond prices. 2. Discussion on forward rates, duration. 3. Discussion on Spreads.

AFV method value the securities in such a manner that the possibility of riskless profits is negated.

Embedded Options would include call options, put options. The candidates are expected to understand the impact of options on bond's duration and convexity.

Credit Risk refers to the risk of default and deterioration in the credit quality (in case default does not occur) of the security.

CDS is an insurance contract wherein the protection buyer is compensated by the protection seller in case of an credit event. This topic details the pricing and valuation of CDS along with utility of CDS in managing the credit exposure.

Forward Commitments refer to Forwards, FRAs, and Swaps. This topic expects you to have a grip over the pricing and valuation of the mentioned instruments.

Contingent Claims refers to options. This topic expects you to have a grip over the pricing and valuation of the mentioned instruments.

This topic focuses on the asset class of real estate and the nuances involved in the same.

Publicly traded Real Estate Securities include REITS, MBS and REOCs.

This topic review assesses the perspective of both, the private equity firm and its investors. It discusses pre-money and post-money valuation of the investee company.

In this topic, a broad understanding of commodity market is provided to the reader along with the applicability of the overall learning and adjustments thereof with respect to the commodity market.

ETFs represent securities in a benchmark portfolio that trades on secondary market. The discussion is basic in nature involving portfolio perspective on ETFs.

This topic extends form the CFA L1 & CFA L2 discussion on multifactor models and its implications on an overall portfolio level.

The different approaches to measuring risk includes VaR, sensitivity risk and scenario risk and its applicability on a portfolio.

Discussion around business cycles, sector rotations, business cycles, and cyclical effects on valuation multiples.

This topic explores an overall review of the portfolio management including active return including its bifurcation, Information ratio, Sharpe ratio etc.

In this topic, execution piece of an investment is focused upon.