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CFA Level II topic weights for 2027

10 topic areas, ranked by weight, with the modules, key terms and practice links for each.

The weights at a glance

Vignette-based (item set) multiple-choice questions over 4.5 hours, in two sessions of 132 minutes. Offered in May, August and November.

Topic areaWeightRelative size
Ethical & Professional Standards10–15%
Financial Statement Analysis10–15%
Equities10–15%
Fixed Income10–15%
Portfolio Construction10–15%
Quantitative Methods5–10%
Economics5–10%
Corporate Finance5–10%
Derivatives5–10%
Alternative Investments5–10%

Weights are the published bands from CFA Institute's 2027 topic outlines, checked in October 2026. The midpoint is shown only to rank topics.

What each topic covers

Ordered from the heaviest weight down. Module names follow the official outline.

Ethical & Professional Standards

10–15% of the exam

The same Standards, applied to dense vignettes with competing duties.

  • Code of Ethics and Standards of Professional Conduct
  • Guidance for Standard I: Professionalism
  • Guidance for Standard II: Integrity of Capital Markets
  • Guidance for Standard III: Duties to Clients
  • Guidance for Standard IV: Duties to Employers
  • Guidance for Standard V: Investment Analysis, Recommendations, and Actions
  • Guidance for Standard VI: Conflicts of Interest
  • Guidance for Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate
  • Application of the Code and Standards: Level II

Topic map and sample questions. Key terms: Code of Ethics · Standards of Professional Conduct · Material non-public information · Mosaic theory · Front-running · Market manipulation · all 11.

Financial Statement Analysis

10–15% of the exam

Intercorporate investments, pensions, multinationals, report quality.

  • Intercorporate Investments
  • Employee Compensation: Post-Employment and Share-Based
  • Multinational Operations
  • Analysis of Financial Institutions
  • Evaluating Quality of Financial Reports
  • Integration of Financial Statement Analysis Techniques

Topic map and sample questions. Key terms: Goodwill · Earnings quality · Off-balance-sheet financing.

Equities

10–15% of the exam

DDM, free cash flow, multiples, residual income, private companies.

  • Equity Valuation: Applications and Processes
  • Discounted Dividend Valuation
  • Free Cash Flow Valuation
  • Market-Based Valuation: Price and Enterprise Value Multiples
  • Residual Income Valuation
  • Private Company Valuation

Topic map and sample questions. Key terms: Free cash flow · Enterprise value · Price-to-earnings ratio · Dividend discount model.

Fixed Income

10–15% of the exam

Term structure dynamics, arbitrage-free valuation, embedded options, CDS.

  • The Term Structure and Interest Rate Dynamics
  • The Arbitrage-Free Valuation Framework
  • Valuation and Analysis of Bonds with Embedded Options
  • Credit Analysis Models
  • Credit Default Swaps

Topic map and sample questions. Key terms: Spot rate · Forward rate · Bootstrapping (yield curve) · Duration · Effective duration · Convexity · all 12.

Portfolio Construction

10–15% of the exam

Active management, ETFs, multifactor models, market risk, backtesting.

  • Economics and Investment Markets
  • Analysis of Active Portfolio Management
  • Exchange-Traded Funds: Mechanics and Applications
  • Using Multifactor Models
  • Measuring and Managing Market Risk
  • Backtesting and Simulation

Topic map and sample questions. Key terms: Multifactor model · Factor investing · Arbitrage pricing theory · Active share · Fundamental law of active management · Style drift.

Quantitative Methods

5–10% of the exam

Multiple regression, misspecification, time series, machine learning.

  • Basics of Multiple Regression and Underlying Assumptions
  • Evaluating Regression Model Fit and Interpreting Model Results
  • Model Misspecification
  • Extensions of Multiple Regression
  • Time-Series Analysis
  • Machine Learning
  • Big Data Projects

Topic map and sample questions. Key terms: Linear regression · Coefficient of determination · Heteroskedasticity · Serial correlation · Multicollinearity · Supervised learning · all 8.

Economics

5–10% of the exam

Two dense modules: currency equilibrium value and economic growth.

  • Currency Exchange Rates: Understanding Equilibrium Value
  • Economic Growth

Topic map and sample questions. Key terms: Purchasing power parity · Interest rate parity · Carry trade · Currency hedging.

Corporate Finance

5–10% of the exam

Dividends and buybacks, ESG, advanced cost of capital, restructuring.

  • Analysis of Dividends and Share Repurchases
  • Environmental, Social, and Governance (ESG) Considerations in Investment Analysis
  • Cost of Capital: Advanced Topics
  • Corporate Restructuring

Topic map and sample questions. Key terms: Weighted average cost of capital · Capital structure · Pecking order theory · Agency problem · Corporate governance · Dividend policy.

Derivatives

5–10% of the exam

Forward commitments and contingent claims — binomial, BSM, the Greeks.

  • Pricing and Valuation of Forward Commitments
  • Valuation of Contingent Claims

Topic map and sample questions. Key terms: Black–Scholes–Merton model · Implied volatility · Gamma · Vega · Theta · Rho · all 7.

Alternative Investments

5–10% of the exam

Commodities, real estate direct and listed, hedge fund strategies.

  • Introduction to Commodities and Commodity Derivatives
  • Overview of Types of Real Estate Investment
  • Investments in Real Estate through Publicly Traded Securities
  • Hedge Fund Strategies

Topic map and sample questions. Key terms: Private equity · Leveraged buyout · Hedge fund.

Plan around it

Checked 28 October 2026. CFA® and FRM® are registered trademarks of their respective owners; Groundlearn is not affiliated with CFA Institute or GARP. Always confirm the current outline with the exam body.

Study it in Cornerstone

Cornerstone follows these weights: snapshot cards and five-question sessions for every CFA® and FRM® topic area, with progress weighted the way the exam is. Free to start on Android, and offline.

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