Latest CFA Level 2 Practice Exam Questions 2025, Sample Questions | SPOTO

The CFA Level 2 exam is a challenging assessment that focuses on advanced financial analysis, portfolio management, and valuation skills. It is known for its focus on applying concepts to real-world scenarios and requires thorough preparation. SPOTO offers the latest CFA Level 2 practice exam questions and sample questions for 2025, providing candidates with realistic mock exams and comprehensive practice tests. With SPOTO’s expertly crafted materials, candidates can refine their problem-solving abilities and gain a deeper understanding of key financial concepts. The practice questions cover all essential topics, from ethics and quantitative methods to fixed income and equity investments, helping you build confidence and improve performance. Prepare effectively with SPOTO’s up-to-date resources and maximize your chances of success in the CFA Level 2 exam.

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Question #1

The predicted P/E for tillS using Robbins's model is closest to:

A. 0

B. 3

C. 0

View answer

Correct Answer: A

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Question #2

Based on the available infonnation, Sanders should:

A. old the Marietta bonds because the ratios are consistent with a BBB-rated bond

B. ell the Marietta bonds because the ratios are consistent with a BBB-rated bond

C. ell the Marietta bonds because the ratios are consistent with a BB-rated bond

View answer

Correct Answer: B

Question #3

For this question only, ignore the information from Exhibit 1 and any other calculations in other questions. Rather, assume that the interest rate lattice provided in Exhibit 2 is constructed to be arbitrage-free. However, when Rogers calculates the price of the callable bond using the interest rates in the lattice, he gets a value higher than the market price of the bond. Is the price of the third callable and putable bond likely to be less than, equal to, or greater than lOO%, and is the option-adjusted s

A. ess than 100% Zero

B. qual to 100% Positive

C. reater than 100% Negative

View answer

Correct Answer: B

Question #4

Sanders first analyzes Marietta's 2008 EBIT-to-interest expense and EBITDA-to-interest expense and compares them to the median ratios from Exhibit 2. Relative to the BBB medians for the respective ratios:

A. oth ratios are greater than their respective BBB median ratios

B. oth ratios are less than their respective BBB median ratios

C. nly one ratio is greater than its respective BBB median ratios

View answer

Correct Answer: A

Question #5

Did the two statements in Garvey's biography violate Standard VII(B) Reference to CFA Institute, the CFA designation, and the CFA program?

A. tatement 1 is a violation

B. tatement 2 is a violation

C. oth statements are violations

View answer

Correct Answer: C

Question #6

The 2009 estimate of FCFF is closest to:

A. 191, 646

B. 210, 329

C. 215, 329

View answer

Correct Answer: A

Question #7

Has either Harris or Clark violated Standard 11(A) Integrity of Capital Markets: Material Nonpublic Information?

A. arris is in violation

B. lark is in violation

C. oth are in violation

View answer

Correct Answer: C

Question #8

Using the information in the question and the following relevant portion of the interest rate and pricing trees, Rogers ralculates the value of the noncallable bond at node A.Corresponding portion of the interest rate tree:8.95%7.91%7.23%Years 1.5 2.0Corresponding portion of the binomial price tree:91.73%96.17%Years 1.5 2.0The price of the noncallable bond at node A is closest to:

A. 9

B. 3

C. 6

View answer

Correct Answer: B

Question #9

Using the appropriate translation method, which of the following best describes the effect of changing exchange rates on the parent's fiscal 2008 financial statements?

A. n accumulated loss of CAD 242, 100 is reported in the shareholders' equity

B. loss of CAD 31, 200 is recognized in the income statement

C. gain of CAD 27, 400 is recognized in the income statement

View answer

Correct Answer: B

Question #10

Timmons' approach to generating liquidity can be best characterized as a:

A. otal return approach

B. actical income approach

C. trategic income approach

View answer

Correct Answer: A

Question #11

Compare the 2008 long-term obligations to capitalization ratio benchmarks to Marietta's ratio. Marietta is between the:

A. and BBB benchmark ratios

B. BB and BB benchmark ratios

C. B and B benchmark ratios

View answer

Correct Answer: B

Question #12

Evaluate Rogers' statements.

A. nly Statement 1 is correct

B. nly Statement 3 is correct

C. oth statements are correct

View answer

Correct Answer: C

Question #13

By how much (in dollars) does GDW's FCFF exceed its free cash flow to equity (FCFE) in 2008?

A. 9, 567

B. 45, 251

C. 52, 897

View answer

Correct Answer: B

Question #14

Based on the method of average return on equity (ROE), the nomialized EPS for UBS is closest to:

A. 0

B. 1

C. 1

View answer

Correct Answer: B

Question #15

Based on the assumption that international parity conditions will hold in the long run, should the JPY and Euro currency exposures of the bank's major customer be left unhedged?

A. oth currencies should be left unhedged

B. either currency should be left unhedged

C. ne currency should be left unhedged and the other should not

View answer

Correct Answer: C

Question #16

Suppose the parent uses the all-current method to translate the subsidiary for fiscal 2008. Will return on assets and net profit margin in U.S. dollars before translation be the same as, or different than, the translated Canadian dollar ratios? Return on assets Net profit margin

A. ame Same

B. ifferent Different

C. ifferent Same

View answer

Correct Answer: C

Question #17

According to relative purchasing power parity, the expected JPY/EUR spot rate two years from now is closest to:

A. 50

B. 58

C. 66

View answer

Correct Answer: A

Question #18

Evaluate Rogers' statements.

A. nly Statement 2 is correct

B. nly Statement 4 is correct

C. oth statements are incorrect

View answer

Correct Answer: B

Question #19

Are Hally's statements regarding foreign currency translation correct? Statement 1 Statement 2

A. es Yes

B. es No

C. o No

View answer

Correct Answer: C

Question #20

If total proceeds net of fees to SLPEF are worth $180 million upon exit in a year. the fund's general partner (GP) under the total return using invested capital method would receive a compensation of:

A. 0

B. 12 million

C. 36 million

View answer

Correct Answer: B

Question #21

The market value of the embedded call option in Exhibit 1 is closest to:

View answer

Correct Answer: A

Question #22

Is UHS stock, at the end of 2008, best described as overvalued or undervalued according to the: Trailing PEG ratio? P/S ratio?

A. ndervalued Undervalued

B. vervalued Undervalued

C. ndervalued Overvalued

View answer

Correct Answer: B

Question #23

Which action by Park violated Standard 111(B) Duties to Clients: Fair Dealing?

A. ncreasing allocation to the problem client

B. ecreased allocation to the brother-in-law and other firm clients

C. oth actions are violations

View answer

Correct Answer: C

Question #24

Which of the following best describes the effect on the parent's fiscal 2008 sales when translated to Canadian dollars? Sales, relative to what it would have been if the CAD/USD exchange rate had not changed, will be:

A. ower because the U

B. igher because the average value of the Canadian dollar depreciated during fiscal 2008

C. ower because the U

View answer

Correct Answer: A

Question #25

Carr's time horizon can be best characterized as;

A. hort-term and single-stage

B. hort-term and multistage

C. ong-term and multistage

View answer

Correct Answer: C

Question #26

SLPEF's general partner's (GP's) share of fund profits, and management's right to buy an equity stake in the private equity firms, respectively, are called: Profits to the GP Management's right to buy an equity stake

A. arried interest Ratchet

B. atchet Distribution waterfall

C. arried interest Tag-along, drag-along clause

View answer

Correct Answer: C

Question #27

The cost of equity and the sustainable growth rate (using beginning equity) are closest to:Cost of equity Sustainable growth rate

A. % 8%

B. 0% 8%

C. 0% 16%

View answer

Correct Answer: B

Question #28

Assuming that the cost of equity for FDS does not change, the present value of growth opportunities in the share price following the announcement that the company would be expanding its retail operations, using Emery's 2009 earnings forecast, is closest to:

A. 9

B. 10

C. 12

View answer

Correct Answer: B

Question #29

Warner determines that on a per-share basis, the FCFE for GDW in 2008 is $0.19. Further analysis suggests that FCFE per share will grow by $0.02 in each of the next two years before leveling off to a long-term growth rate of 5%. The current value of one share of GDW's equity is closest to:

A. 4

B. 7

C. 13

View answer

Correct Answer: A

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Latest CFA Level 2 Practice Exam Questions 2025, Sample Questions | SPOTO

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Latest CFA Level 2 Practice Exam Questions 2025, Sample Questions | SPOTO

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