​CFA Level 2 Practice Exam Questions

Welcome to our CFA Level 2 Practice Quiz! This interactive quiz is designed to test your knowledge on key concepts and principles covered in the CFA Level 2 syllabus. The questions are in multiple-choice format, similar to what you'll encounter in the actual exam. Each question comes with an explanation to help you understand the rationale behind the answer. Whether you are self-studying or want to supplement your learning, this practice quiz is a great tool to assess your understanding and identify areas for further study. Good luck, and we hope this practice quiz brings you one step closer to achieving your CFA Level 2 certification!
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CFA Sample Practice Questions | Level 2 | Answers and Explanations

CFA Sample Practice Questions | Level 2 | Answers and Explanations


1. Which of the following is not a key characteristic of a perfectly competitive market?





2. An analyst assumes that the short rate will increase by 1% in one year. This assumption is in line with which of the following interest rate theories?





3. Which type of risk does Value-at-Risk (VaR) fail to capture?





4. Which of the following is not a technique used in sensitivity analysis?





5. Which of the following metrics would be most appropriate for evaluating the credit risk of a bond?





6. In a leveraged buyout (LBO), what is the role of private equity firms?





7. An analyst uses the price/sales ratio to value a company. This approach is commonly referred to as what?





8. Which of the following is an advantage of using Monte Carlo simulation in financial modeling?





9. What does the Gordon Growth Model assume about a company's future dividends?





10. Which financial statement would an analyst look at to determine a company's financial leverage?