CFA Level 2: Portfolio Management
Master the CFA Level II Portfolio Management topic area. This course covers all six official 2026 Learning Modules, one chapter each: how economic factors price assets through default-free rates, expected cash flows, and risk premiums across the business cycle; measuring active management with the information ratio and predicting it with the fundamental law — information coefficient, transfer coefficient, breadth, and aggressiveness; ETF mechanics from creation and redemption through tracking error, premiums and discounts, and total cost of ownership; arbitrage pricing theory and macroeconomic, fundamental, and statistical multifactor models with full return and risk attribution; value at risk estimated by the parametric, historical simulation, and Monte Carlo methods with its extensions, sensitivity and scenario measures, and institutional risk practice; and backtesting and simulation, including survivorship and look-ahead bias, historical scenario analysis, and Monte Carlo design. Every chapter teaches through runnable Python on one coherent environment — a benchmark index, an active fund, and a risk book — and assesses in the exam's own vignette format: item sets with data exhibits, three-option questions, and distractors built from real candidate errors. The course closes with a full timed item-set exam. Aligned to the 10-15% CFA Level II exam weight.
- Level: intermediate
- Duration: 4 weeks
- 8 sections
- Price: $20
Topics: economics and investment markets, business cycle, discount rates, term structure, break-even inflation, credit spreads, equity risk premium, valuation multiples, commercial real estate, active management, value added, information ratio, Sharpe ratio, fundamental law of active management, information coefficient, transfer coefficient, breadth, active risk, manager selection, ETF, creation redemption, authorized participants, tracking error, bid-ask spread, premium discount, total cost of ownership, multifactor models, arbitrage pricing theory, APT, factor sensitivities, macroeconomic factor models, fundamental factor models, statistical factor models, return attribution, risk attribution, tracking risk, value at risk, parametric VaR, historical simulation, Monte Carlo simulation, conditional VaR, incremental VaR, marginal VaR, sensitivity risk measures, scenario analysis, stress testing, risk budgeting, position limits, backtesting, survivorship bias, look-ahead bias, data snooping, rolling window, simulation, sensitivity analysis, CFA Level II, portfolio management, item sets, vignettes
What's inside
- Portfolio Management (CFA Level II)
- Chapter 1: Economics and Investment Markets
- Chapter 2: Analysis of Active Portfolio Management
- Chapter 3: Exchange-Traded Funds — Mechanics and Applications
- Chapter 4: Using Multifactor Models
- Chapter 5: Measuring and Managing Market Risk
- Chapter 6: Backtesting and Simulation
- Chapter 7: Portfolio Management Item-Set Exam