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Level II Curriculum: What Changed for 2022

The CFA® Program curriculum equips candidates with relevant knowledge and skills that reflect current investment management practice.

As part of our commitment to prioritizing the interests of our candidates and helping minimize the impact of pandemic-related disruptions, CFA Institute froze the 2020 CFA Program curriculum for 2021 exam administrations. This meant that all candidates who took exams in 2021 were tested on the 2020 CFA Program curriculum. Despite this freeze for candidates, the curriculum continued to evolve. Extensive work through practice analysis and curriculum development has resulted in revisions across all levels of the curriculum.

When you register for your CFA Program exam, you receive the curriculum aligned with the exam you will take. Exam questions will be based solely on the current curriculum year readings.

Refer to the key and tables below to see what has changed in Level II of the CFA Program curriculum over the past two years, and download our Level II infographic (pdf) and Guide to 2022 CFA Program Curriculum Changes (pdf) for more information.

  • Update: Smallest degree of change. Data, examples, and references were brought up to date.
  • Revision: Medium degree of change. Content was adjusted and improved for clarity or accuracy.
  • Major Revision: Largest degree of change. Content was rewritten or significantly altered to reflect new guidance or advances in the industry.
  • Added: New area of content introduced to the curriculum.
  • Dropped: Reading no longer appears in the curriculum. Material was no longer relevant or was better captured elsewhere.
  • No Changes: Content remains the same as in the 2020 curriculum.
Reading Change Summary of Changes
Introduction to Linear Regression Complete Revision Completely new reading
Duplicated in Level II for 2022 only
Multiple Regression No Changes
Time-Series Analysis No Changes
Machine Learning Updated Added three new cases using investment datasets
Big Data Projects No Changes
Excerpt from "Probabilistic Approaches: Scenario Analysis, Decision Trees, and Simulations Dropped Replaced by Backtesting & Simulation in Portfolio Management reading
Reading Change Summary of Changes
Currency Exchange Rates: Understanding Equilibrium Value Updated
Economic Growth Updated Eliminated or revised conceptual material on economic growth models for clarity
Economics of Regulation Updated Updated to ensure content reflects current regulations
Reading Change Summary of Changes
Intercorporate Investments No Changes
Employee Compensation: Post-Employment and Share-Based No Changes
Multinational Operations No Changes
Analysis of Financial Institutions No Changes
Evaluating Quality of Financial Reports No Changes
Integration of Financial Statement Analysis Techniques No Changes

Changed from Corporate Finance

Reading Change Summary of Changes
Capital Structure Updated Updated data and examples
Analysis of Dividends and Share Repurchases Updated Updated data and examples
Environmental, Social, and Governance (ESG) Considerations in Investment Analysis Major Revision Added ESG examples and content
Mergers and Acquisitions Major Revision Updated data and examples
Dropped coverage of Herfindahl–Hirschman Index
Dropped coverage of equity valuation methods covered in equity domain (DCF, comparable company, comparable transaction)
Capital Budgeting Major Revision Dropped coverage of individual project analysis reflecting a corporate insider's perspective
Reading Change Summary of Changes
Equity Valuation: Applications and Processes Updated
Return Concepts Updated
Industry and Company Analysis Updated
Discounted Dividend Valuation Updated
Free Cash Flow Valuation Updated
Market-Based Valuation: Price and Enterprise Value Multiples Updated
Residual Income Valuation Updated
Private Company Valuation Updated
Reading Change Summary of Changes
The Term Structure and Interest Rate Dynamics Revision Data revised and updated
Examples and notations made consistent
The Arbitrage-Free Valuation Framework Revision Data revised and updated
Examples and notations made consistent
Valuation and Analysis of Bonds with Embedded Options Revision Data revised and updated
Examples and notations made consistent
Credit Analysis Models Revision Data revised and updated
Examples and notations made consistent
Credit Default Swaps Revision Data revised and updated
Examples and notations made consistent
Reading Change Summary of Changes
Pricing and Valuation of Forward Commitments Major Revision Added new visuals, added clarity in exposition, streamlined notations
Valuation of Contingent Claims No Changes
Reading Change Summary of Changes
Real Estate Investments Major Revision Combined Private and Public Real Estate readings
Streamlined content
Publicly Traded Real Estate Securities Dropped Combined with Real Estate Investments reading
Private Equity Investments Revision New content on valuation (VC method) replaces previous external content at end of reading
Introduction to Commodities and Commodity Derivatives Revision Revised and streamlined for clarity
Reading Change Summary of Changes
Exchange Traded Funds: Mechanics and Applications Revision
Using Multifactor Models Revision Added material that supports fixed income factor models and Backtesting & Simulation reading
Measuring and Managing Market Risk Updated
Backtesting & Simulation New Introduces rolling-window back testing and historical/Monte Carlo simulation of multifactor portfolios
Economics and Investment Markets Updated
Analysis of Active Portfolio Management Updated
Trading Costs and Electronic Markets No Changes
Reading Change Summary of Changes
Code of Ethics and Standards of Professional Conduct No Changes
Guidance for Standards I–VII No Changes
Application of the Code and Standards: Level II Revision Added three new cases: Banco Libertad, SIC, Serengeti

See all readings and exam topics in the Level II Study Sessions

See what's changing in Level I

See what's changing in Level III