CAIA® Level II study materials
Review application concepts with study notes, question practice and original response exercises. Match the material to your intended curriculum edition and required readings.
Everything in the Level II package
Source-cited study notes
Study application concepts in asset allocation, manager selection and selected financial models.
Question practice
Review selected application questions and original response exercises.
Response rehearsal
Use original case prompts to rehearse a conclusion, supporting evidence and the calculation or explanation requested.
Original practice
Spaced-repetition flashcards
Review selected frameworks and allocation concepts before returning to an application question.
Performance analytics
Review recorded practice results and the reasons behind incorrect or incomplete answers.
Practice review
Integration traps, called out
The cross-topic traps that catch Level II essay-writers are flagged inside the readings where they strike — with a worked example showing the correct treatment.
Flagged in the reading
Official exam scope
Use the published ranges to check your intended cycle and the actual scope of your preparation materials.
Check curriculum edition and cycle| Topic | Multiple choice | Constructed response |
|---|---|---|
| CAIA Ethical Principles | 0% | 10% |
| Institutional Asset Owners | 5–11% | 0–10% |
| Asset Allocation | 10–16% | 0–10% |
| Risk and Risk Management | 5–11% | 0–10% |
| Methods and Models | 7–13% | 0–10% |
| Accessing Alternative Investments | 3–9% | 0–10% |
| Due Diligence and Selecting Managers | 6–12% | 0–10% |
| Volatility and Complex Strategies | 5–11% | 0–10% |
| Universal Investment Considerations | 4–10% | 0–10% |
| Emerging Topics | 0% | 10% |
A worked study example
Capital weights and risk contributions
In a hypothetical two-asset model, capital weights are 40% and 60%, standard deviations 20% and 10%, and correlation 0.3. Portfolio variance is 0.01288 and standard deviation approximately 11.3490%.1
The marginal volatility contribution of asset A is its covariance with the portfolio divided by portfolio standard deviation. Multiplying that marginal amount by A’s weight gives its weighted contribution.2 A contributes about 60.87% of total model volatility despite a 40% capital weight. Both components depend on the covariance record.3
- 1
Capital and risk shares
The 40% capital weight and approximately 60.87% risk share describe different quantities in this model.
- 2
Marginal versus weighted contribution
Marginal contribution uses covariance divided by portfolio standard deviation; weighted contribution adds the asset weight.
- 3
Reconcile the total
Weighted contributions sum to portfolio standard deviation; their shares sum to one when total model volatility is positive.
Choose your Level II plan
Same source-cited content in every tier — pick how far you want the support to go. Move up anytime and pay only the difference.
Level II questions, answered
About the CAIA® charterHow are Level II question types weighted?
The 2027 CAIA handbook assigns 70% of total exam weight to multiple choice and 30% to constructed response. Use current official materials for the assessment instructions and original prompts to rehearse applied explanations.
How is the Level II exam structured?
For 2027, CAIA lists 100 multiple-choice questions in a 130-minute section and three constructed-response sets in another 130-minute section.
I passed Level I a while ago — where should I start?
Start by comparing the current Level II outline with your existing knowledge. Review prerequisites where an application question exposes a gap, and confirm the edition of any older material.
Can I upgrade later?
Yes. Move up a tier at any time and pay only the difference — your progress and notes carry over.
Is the constructed-response section really that different?
A constructed response asks you to produce the requested calculation or explanation. Practise answering each prompt part with relevant evidence, and use the current official instructions for the assessment requirements.
Try a topic before you decide.
One full Level II topic is free — notes, questions, and the tools — so you can judge the material against how you actually study before paying anything.
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