Free CFA® Level 2 Exam Questions and Answers
Part of CFA — Chartered Financial Analyst — see every part of the exam.
CFA® Level 2 is one of the Test Prep tests covered here. These are standardised tests from different organisations rather than one programme — the Praxis series for US teacher licensure is awarded by ETS, and admissions and licensure tests alongside it come from other bodies entirely, each with its own format and scoring.
If you searched for CFA® Level 2 dumps, an ExamTopics discussion or a free PDF, this is the question bank for it: practice questions with verified answers and explanations, a timed practice test and updates whenever Test Prep changes the exam.
Last updated: September 28, 2026
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Question #1
A portfolio manager is considering investing in a stock with a _ of 1.2. If the market return is 10% and the risk-free rate is 2%, what is the expected return according to CAPM?
Correct answer: A
Explanation
Expected return = Risk-free rate + _ (Market return - Risk-free rate) = 2% + 1.2 * (10% - 2%) = 10.4%.
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Discussion
Explain your reasoning, not just the letterBrowse the free questions by topic
More CFA® Level 2 questions
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- Question 5An investor holds a bond with a 5% coupon rate that matures in 10 years. If the current market interest rate is 6%…
- Question 6A firm plans to issue new equity to finance a project that is expected to generate cash flows of $500,000 per year for…
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FAQ
- Q1: What is the CFA® Level 2 exam?
- A: CFA® Level 2 is a Test Prep certification exam. Judging by the questions in our bank, it concentrates on market, stock, investment, equity and ratio.
- Q2: What topics does the CFA® Level 2 exam cover?
- A: Questions in our CFA® Level 2 bank cluster around market, stock, investment, equity, ratio, firm, investor and analyst. Working through the full set is the quickest way to find which of these you are weakest on.
- Q3: How should I prepare for CFA® Level 2?
- A: Work through the CFA® Level 2 practice questions here, checking your answer on each one, then sit the practice test to rehearse the exam under timed conditions before the real thing.
- Q4: Are these real CFA® Level 2 exam questions?
- A: They are drawn from officially released past questions and from community members who have sat CFA® Level 2. Answers are verified and updated weekly.
- Q5: Where do I register for the CFA® Level 2 exam?
- A: Register through Test Prep directly. Exampractice is not affiliated with Test Prep and does not administer the exam.
- Q6: Is there a free CFA® Level 2 sample?
- A: Yes. Every CFA® Level 2 page shows a free sample of real questions. Upgrading opens the full bank and the practice test.