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Level II Curriculum: What Changed for 2023

Extensive work through practice analysis and curriculum development has resulted in significant revisions at Level II for 2023. These changes, coupled with the updates made for the 2022 cycle, aim to better equip candidates with the knowledge and skills that reflect current investment practice.

Highlights to changes for 2023 include revised Multiple Regression content, now divided into four, easier-to-consume learning modules. The Corporate Restructuring reading includes the expanded use of spreadsheet modeling, and the Real Estate readings have been subdivided into three readings with more streamlined content.

Refer to the key and tables below to learn what else has changed in Level II of the CFA Program curriculum for 2023.

Interested to compare these changes against updates that were made last year? Visit Level II Curriculum: What Changed for 2022.

  • 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 2022 curriculum.

Reading Change Summary of Changes
Introduction to Linear Regression Dropped Content moved to Level I
Multiple Regression Major Revision

Content coverage divided into four learning modules:

  • Basics of Multiple Regression and Underlying Assumptions
  • Evaluating Regression Model Fit and Interpreting Model Results
  • Model Misspecification
  • Extensions of Multiple Regression

Updated content with investment-focused datasets
Expanded coverage in last module on evaluation of influential observations and outliers
Time-Series Analysis No Changes
Machine Learning No Changes  
Big Data Projects No Changes

Reading Change Summary of Changes
Currency Exchange Rates: Understanding Equilibrium Value Updated
Economic Growth Revision  
Economics of Regulation No Changes  

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
Financial Statement Modeling (Previously Industry and Company Analysis) Revision

Reading moved from Equity Valuation Topic to Financial Statement Analysis topic

Introduction of spreadsheets in LES for financial modeling and additional content on behavioral biases in forecasting

Reading Change Summary of Changes
Capital Structure Dropped Content streamlined and moved to Level I
Analysis of Dividends and Share Repurchases No Changes  
Environmental, Social, and Governance (ESG) Considerations in Investment Analysis Update New EORQs
Cost of Capital: Advanced Topics Added New reading that focuses on extensions and complexities in estimating required rates of return for equities and fixed income as well as issues in constructing weighted average cost of capital (WACC)
Corporate Restructuring (Previously Mergers and Acquisitions) Major Revision Completely rewritten reading
Mostly new content with broader focus on a variety of corporate restructuring events, their analysis, and incorporation into financial modeling for forecasting and valuation
Supporting spreadsheets introduced into LES
Capital Budgeting Dropped Content deleted or streamlined and moved to Level I

Reading Change Summary of Changes
Equity Valuation: Applications and Processes No Changes
Return Concepts Dropped
Industry and Company Analysis Revision Now Financial Statement Modeling (moved to Financial Statement Analysis topic)
Discounted Dividend Valuation No Changes
Free Cash Flow Valuation No Changes
Market-Based Valuation: Price and Enterprise Value Multiples No Changes
Residual Income Valuation No Changes
Private Company Valuation No Changes

Reading Change Summary of Changes
The Term Structure and Interest Rate Dynamics No Changes  
The Arbitrage-Free Valuation Framework No Changes
Valuation and Analysis of Bonds with Embedded Options No Changes
Credit Analysis Models No Changes
Credit Default Swaps No Changes

Reading Change Summary of Changes
Pricing and Valuation of Forward Commitments No Changes  
Valuation of Contingent Claims No Changes

Reading Change Summary of Changes
Real Estate Investments Revision Public and Private Real Estate readings combined; content streamlined and divided into three learning modules
Private Equity Investments No Changes  
Introduction to Commodities and Commodity Derivatives No Changes  

Reading Change Summary of Changes
Exchange Traded Funds: Mechanics and Applications No Changes
Using Multifactor Models No Changes  
Measuring and Managing Market Risk No Changes
Backtesting & Simulation No Changes  
Economics and Investment Markets No Changes
Analysis of Active Portfolio Management No Changes
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 New cases added to ensure complete coverage of Code and Standards

See all readings and exam topics in the Level II Study Sessions (candidate login required)

See what's changing in Level I

See what's changing in Level III

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