Level II tips(3)

venson

THOUGHTS ON LEVEL 2
Author: RobRob
Date:   Wednesday, June 4 @ 7:35 am

Here are some of my thoughts for people starting to prepare for Level 2. I took it in 2003.

1) Level 2 is a completely different test than Level 1. For Level 1 you took the med school exams. Level 2 is the Bar exam. This is a commentary on the type of exam, not the degree of difficulty-The hardest exam is the one your taking no matter what anybody says. Level 1 is a mile wide inch deep plug and chug 240 question representation of the material. Level 2 is a sampling essay test in the morning (14-18 questions) and the item set in the afternoon. THEREFORE SUCCESSFUL STUDY METHODS FOR LEVEL 2 are different THAN Level 1. The notes are less valuable, the testbank is less valuable etc.

2)Expect the unexpected. Be comfortable being uncomfortable. No one can predict or will predict what will be on the test so don't bother trying. I had every note providers most probable and everyone said Residual income and cash and carry would be there and also said no way to H because it is too difficult. Not true. So you need to learn the material.

3)Level 2 is a mile wide with one part 6 inches deep and the rest 1 inch deep. The trouble is you don't know what part is deep so you need to practice problems and problems and problems. Its is not good neough to just know "WHAT" for the answer-You must also know "WHY".

4)For the essay you will not have the time you will have on Level 1 and item set for Level 2 to think through or reverse engineer your answer. AIMR historically throws the curve ball in question 1 to shake you. I started with the last one and ended up at 1. Each exam has a "theme". This one was quality of earnings and financial statement adjustments.

5) To pass L2 you need to go to do well on FSA. I took John Harris's one day accounting workshop and it was very helpful.

6) Nail the things you can- Quant, Port, Ethics, Equity. Focus on the topics that give you the biggest bang for the buck. For example Portfolio has the least amount of material/point and debt has the most material/point and has superficial questions.

7) The only way to pass ethics is to get a "sense" of the code. You need to buy the code handbook and take as many practice questions as you can. This is the one area where testing software is helpful.

8) You can pass L1 without using the textbooks (I did). You need to get them and the AIMR readings for Level 2-Especially the one's that AIMR produces. You need to do the problems in the back of the cahpters. Buy the solutions manuals for the non-AIMR ones. You can always sell them later. I would do the end of chapter questions and mocks over any testing software. Rememeber, all the past AIMR L2 released exams will be easier than the one you take.

9)In the morning the goal is to brutally fight for points-point by point by point. The morning is an endurance test and you must be well rested. You also need to minimize "stupid" mistakes. Nobody gets all the points and the MPS is somewhere historically in the 60% range. My goal was to nail 120 points in the morning and 135 in afternoon (45/60).

10)Start early. Lightly go over the notes over time peaking by next June. Write your own notes as you go through and gradually condense them. Above all don't trust your notes provider to carry you like they di for Level 1. Especially don't rely on them on new or relativley new topics to the curriculum-like pensions etc.

Hopefully this will help some of you prepare. I believe I passed, but in any case I felt adequately prepared and wouldn't have done much differently. Maybe my good friend Mr. Roboto and others can add to this.


Best regards
Rob



Re: THOUGHTS ON LEVEL 2
Author: CFA Level II Trying to Become
Date:   Wednesday, June 4 @ 8:59 am

RobRob -

Your comments are right on. I did not pass L2 last year and I was much better prepared once I stopped treating this test like L1 - which was pretty straightforward, especially since I have an MBA.

I would just add:

(1) know the LOS, they are there for a reason. Second, buy the books, if nothing else to do the assigned end of chapter problems and review the examples in the book. When I did not pass L2 the first time, someone suggested that I read the books thoroughly because that was where AIMR would draw their questions from. If you look at the Debt, Equity and Accounting essay questions, similar examples are in the books. If you had studied just the problems in the book very, very carefully, you had all the information you needed to answer the questions.

(2) Another suggestion is to answer the essay questions the AIMR way. To pass, you must read old AIMR exam questions and more importantly their answers. AIMR is looking for key formulas, key concepts and if you nail these you will get most of the points, even without getting the correct answer. Practice being clear and concise with your answers, bullet points are preferable.

AIMR has now developed its own set of books for each section except Derivatives and Economics. They want candidates to approach each topic from the AIMR perspective, not the interpretation of a study provider.

(3) Ethics - again RobRob is correct - Let me reemphasize, you MUST read the Standards of Practice Handbook and Casebook. Last year, I did not even read these books and relied on the study notes. WRONG! Last year's ethics questions were much trickier than this year. You have to know how to apply the standards to a particular situation. The Standards of Practice Handbook has tons of examples which the actual test draws upon similar scenarios. Guess what, if you never read the book, you won't see the similarities. That said, I would do as many Ethics practice problems as possible to get comfortable with applying the standards.

(4) The testbanks can be helpful in terms of pacing yourself through the questions and learning how to watch for the tricks. This is a timed exam so you can't take 10 minutes to answer a 4 minute question. The Debt & Equity valuation questions usually take more time so you want to practice an approach that works for you.

I, too, felt adequately prepared. As a repeater, I tried to learn from my earlier mistakes and have a clear, organized strategy and approach to the exam. I also took the approach - know what I know well with target score of 75%+. In fact, know it cold - Quant, Ethics, Equity, PM (those topics alone are 50% of the test). I tried to know the rest as best I could with a target score of 60%+. I am not going to become a debt or derivatives expert overnight, but at least I tried to be familiar enough with the LOS to get sufficient points.

All the best to everyone.



Re: THOUGHTS ON LEVEL 2
Author: Ryan
Date:   Wednesday, June 4 @ 9:10 am

Great post RobRob and CFA Level II trying to become...

Excellent insight. I hope I get to take your points to heart next June!

Thank you.



Re: THOUGHTS ON LEVEL 2
Author: Rascal Heights
Date:   Wednesday, June 4 @ 9:34 am

Yes, all first time level 2 takers should note this message. As a first timer this year, I can verify that this is valuable information.


Re: THOUGHTS ON LEVEL 2
Author: ella
Date:   Wednesday, June 4 @ 10:09 am

I absolutely agree, as a repeater I set similar goals, althought I did not give ethics as much time as I would have liked. But never the less RobRob's post is definitely the way to go.

Best of Luck Everyone



Re: THOUGHTS ON LEVEL 2
Author: Mister Roboto
Date:   Wednesday, June 4 @ 10:25 am

I can't disagree with anything RobRob said. I would like to re-emphasize a few things.

1. Prep providers WILL do some things differently from the texts. Know the way the texts do it, not the prep providers. I used Schweser as a source of questions, not as a guide to learning the material. Even then, they answered their questions their way, not the AIMR way, so be careful. Actually, a good practice would be to do the prep provider questions, and then mentally reconcile their answer with the "right" answer. If you can determine where your prep provider is doing things differently, that will be a HUGE advantage.

2. Don't listen to those who "diss" the textbooks. They are well-written, especially the AIMR ones. And the questions come from the books, not from some prep providers notes. There were TONS of questions that used definitions or concepts almost WORD FOR WORD from the book, but if you didn't use the book, you didn't know that.

3. Ethics has a case handbook. I read the assigned ones twice, but now wish I had read ALL of them. It won't hurt you to know extra, and reading all of them helps make the concepts clear.

4. Don't be afraid to read stuff not exactly linked to an LOS. Many times a whole chapter is listed in the study guide, but some of the stuff doesn't relate to an LOS. Don't spend tons of time on that stuff, but don't just skip it either. It helps you make sense of the material.

5. I totally agree with RobRob, trying to guess, or rely on someone else's guess, of what will be tested is a waste of time.

6. NEVER assume that an LOS is too trivial to be tested.

Reading people's comments on specific questions, one of the most common complaints you see is "My prep provider didn't even mention that." That's why the books are so helpful.



Re: THOUGHTS ON LEVEL 2
Author: Bay
Date:   Wednesday, June 4 @ 12:04 pm

You guys are beautiful... this is exactly what I've been looking for... very helpful!! Also confirmed my thoughts that I would need to use textbooks and not notes for II.



Re: THOUGHTS ON LEVEL 2
Author: Investment Guy
Date:   Wednesday, June 4 @ 12:15 pm

I agree with the above as well. I failed Level 2 due to my underestimation of the depth that they would cover some of the material. I thought I could "muscle" my way through any problem as long as I knew the fundamentals pretty well. I was wrong. No time for muscle, you must know it cold. I finished both sections early and I know I passed this year, simply because I changed my strategy before I took the exam. Did I know the material better this year? Maybe, but mostly I knew how to take the exam better this year.



Re: THOUGHTS ON LEVEL 2
Author: RobRob
Date:   Wednesday, June 18 @ 11:01 am

Duguman-
I brought this back up for you. I found Excel exams not as good as some of the others-I bought them because of the good hype from 2002. None were excellent in my view. I used Passpro, AIMR 98-present, Schweser 2002, 2003, and Excel 2002, 2003 exams. I think its hard to say which will be good for the coming year. Its like picking stocks-Its hard to drive looking out you rear view mirror.

I don't even think the old AIMR tests were that similar to L2 2003.

Regards
Rob



Re: THOUGHTS ON LEVEL 2
Author: JChip
Date:   Monday, July 21 @ 3:54 am

Now that the Level 1 results are out I think this thread gains a level of significance for those who want to map out their plan of attack for Level 2.


Re: THOUGHTS ON LEVEL 2
Author: expatinoman
Date:   Monday, July 21 @ 4:53 am

Use the prescribed text books and the study guide. Follow the study guide religiously. Will help u in two ways.

1 u will know exactly what AIMR expects u to know.

2 will help u professionally as u will be able to actually apply the stuff in your work after such an exhaustive reading.

now, u have to decide if ur aim is to just clear the exam or gain knowledge.


schweser level 2 notes were half way material. Lots of info was presented only as answers to questions. So, if u chose not to do questions from schweser u were sure to be done in.

further, the notes were rather simplistic.

hope it helps.


Re: THOUGHTS ON LEVEL 2
Author: extra
Date:   Monday, July 21 @ 5:56 am

great advice rob. So looks like its going to be books and study provider. I would also like to know, are you under the same time pressure for the l2 exam as you are under l1?
also, how do the work loads compare generally between the levels? say i spent 3 months on level 1,are we talking a smililar amount of time on l2?
thanks



Re: THOUGHTS ON LEVEL 2
Author: Rascal Heights
Date:   Monday, July 21 @ 6:58 am

If your undergrad degree was finance, then level 1 should have been 70% review. Thus, level 2 takes longer to study since more of it is new. There is some carry-over from level 1, however.

I feel that there is more time pressure on the level 2 essay section. You want to keep writing so that you get full credit. I spent too much time on the first set of questions, and had to rush to finish the test. I had a lot of extra time on the multiple choice.

I don't think that level 2 is as difficult as everyone makes it out to be. Know the major concepts, the major valuation techniques, accounting, and ethics. You will do fine.



Re: THOUGHTS ON LEVEL 2
Author: RobRob
Date:   Monday, July 21 @ 7:09 am

extra-
Its kind of a weird pressure. You open the essay section and AIMR consistently tries to throw you with question 1. My worst area was econ which was supposed to be in the afternoon as item set. I open the book and the first essay question was econ. I nearly crapped in my pants. I started with #17 and worked the whole test backwards. Like anything there are butterflies until you hit your pace.

I left at 2 hours 15 minutes for the item set in the afternoon. I had 15 minutes extra on the essay.

I don't think its is necessarily hard but you must stay focused and it is a test of endurance more than a test of knowledge.

I think the hardest level is the one you are taking.

regards
Rob



Re: THOUGHTS ON LEVEL 2
Author: Chung
Date:   Monday, July 21 @ 8:44 am

Hi Rob,

I'm planning on starting light prep for LII after Labour Day. (licking my chops already ;-) ) As it is, I have already the LI texts, and just waiting for the new book list from AIMR. Judging from your comments, I guess it doesn't really matter who your note provider is? As it is, I'm now undecided whether I should go for Shulman's LII special, Passpro's LII package, Stalla's FastTrak special, or Excel's notes + tests (whenever they come out). I 'm not looking at Schweser (unless it's from ebay for cheap) since its 1/2 price deal doesn't seem that good. (maximum credit of $185 and I must buy more than just the notes).

Thanks in advance,
Chung



Re: THOUGHTS ON LEVEL 2
Author: Benji
Date:   Monday, July 21 @ 9:15 am

For L2 first-timers, u better start early. Otherwise u will end up like me, FAILED!!!



Re: THOUGHTS ON LEVEL 2
Author: RobRob
Date:   Monday, July 21 @ 9:15 am

Chung-
Its good to keep the momentum going, even if it is lightly. I'm just putting my Schweser and JKE notes on ebay for L2. I would pick Stalla or Schweser as the main notes (Shulman and Figov are closing the gap in my opinion). Buy the 2003 notes cheap for 2003, use your textbooks, and wait for the rest of a study package until the 2004 are released. It is my understanding that buying the Schweser at 1/2 price is a credit to the Schweser notes whether or not you buy something else. Excel notes (although I like their star system) are too brief to be the main notes provider.

In terms of sample tests I found Schweser 2003 to be the best (although their 2002 were the worst) I used the sample Stalla and passpro and Schweser sample tests. These are good for the item set portion, especially quant. Do the end of chapter questions for each book (especially the AIMR ones).

best regards
Rob