Below is a list of the topics covered for my Level 2 CFA Memorization Tricks guide. These topics come straight from the Table of Contents. Let me know if you have any further questions on what’s covered.

Quantitative Methods

Null Hypothesis Basics, P-Values, F-Tests
Type I and II Errors
Heteroskedacity, Breusch Pagan BP, White Corrections
Serial Correlation & Autocorrelation – 1 of 2
Serial Correlation / Autocorrelation Trick #2 of 2
R-Squared and Adjusted R^2
Unit Roots and Covariance Stationary
Dickey & Fuller Unit Root Test


Down the “Ass” Divide
Forward Premium
Fisher Relation and International Fisher
Relative PPP (Purchasing Power Parity)
Ex-Ante PPP (Purchasing Power Parity)
Real FXxxx
FX Carry Trade
Taylor Rule
Cobb Capital Deepening
Classical Growth Theory
Neoclassical Growth Theory 1 – Capital Deepening
Neoclassical Growth 2 – Savings increases Temporary
Neoclassical: Steady State or Sustainable Growth Rate
Endogenous Growth Theory 1 – Investment to Tech
Endogenous Growth Theory 2 – Savings Increase
Covered & Uncovered Interest Rate Parity

Fixed Income

Pure Unbiased Expectations Theory
Liquidity Preference
Continuous Compounding & Yield Volatility
Continuous Compounding & Yield Volatility
Option Adjusted Spread, Nominal Spread, Z-Spread
Effective Duration & Effective Convexity
CPR and SMM – Prepayment benchmark #1
PSA – Prepayment benchmark #2
Contraction Risk, Extension Risk, IO & PO MBS Strips
Non Parallel Shifts in Yield Curve: Butterfly vs. Twist


Currency Forwards
Interest Rate Collars & Floors
Interest Rate Caplets & Floorlets
Black Scholes Assumptions
Option Greeks – Definitions
Option Greeks – Notable Tendencies
Delta Neutral (Dynamic Hedging)


Fama French Famous Premo Large French Fried Books
Pastor-Stambaugh Holy Water Model
3 Term ROE and DuPont Analysis
5 Term ROE and DuPont Analysis
Sustainable Growth Rate (SGR) & PRAT
Justified Leading & Trailing P/E
2-Stage DDM


Backwardation & Contango Roll Yields
Hedging Perspective vs. Insurance Perspective
Hedge Fund Characteristics
Hedge Fund Indices

Back to The Level 2 CFA Guide