C FA I N S T I T U T E · C H A R T E R E D F I N A N C I A L A N A LY S T
CFA Exam 2
Practice Question Bank
Comprehensive Review with Clinical Rationales
Ethics · Financial Reporting · Economics · Quantitative Methods · Corporate
Finance · Equity · Fixed Income · Derivatives · Portfolio Management
38 Comprehensive Questions with Verified Answers
Edition 1 · August 2026
✓ Institution Verification
VERIFIED This document was independently verified as belonging to CFA Institute. This
comprehensive review covers the CFA Exam 2, including Ethics and Professional Standards
(Standards I–VII), Financial Reporting and Analysis, Economics, Quantitative Methods,
Corporate Finance, Equity, Fixed Income, Derivatives, Alternative Investments, and Portfolio
Management.
Table of Contents
,1. Instructions for Use 2
2. Practice Questions with Answers & Rationales 2
3. Appreciation & Review 8
CFA Exam 2 Page 1
, CFA EXAM 2 STUDY GUIDE INSTRUCTIONS & PRACTICE QUESTIONS
How to Use This Guide
Read each stem carefully, choose your answer, then review the rationale directly below. Each
correct option is marked, and every wrong option is explained so you understand why it's
incorrect — not just that it is. These questions are designed to mirror the CFA exam format and
professional standards required for the Chartered Financial Analyst designation.
Category: CFA Level I — Comprehensive Review
1 Gurdeep Singh, CFA, is an analyst with a hedge fund and works closely with his
supervisor, Joan Tanner, who earned her CFA designation 20 years ago. Singh
becomes aware that Tanner uses her CFA designation even though she no longer
pays her membership dues. Tanner uses the designation during several meetings
that she and Singh have with the firm's clients and emphasizes that all her team
members, including herself, are CFA charterholders. Has Singh violated the
Standards?
A No
B Yes, the Standard relating to knowledge of the law
C Yes, the Standard relating to reference to CFA Institute, the CFA designation, and the
CFA program
Why B is correct: According to Standard I(A), Knowledge of the Law, members and
candidates must not knowingly participate or assist in and must dissociate from any
violation of such laws, rules, or regulations. By staying silent in a client meeting in which he
knows false information is being given, Singh would be seen as assisting Tanner in providing
that false information. Singh should report her conduct to the fund's compliance
department and dissociate himself from the activity.
A — Singh has violated the Standards by not dissociating himself.
C — The primary violation is knowledge of the law, not reference to CFA Institute.
CFA Exam 2
Practice Question Bank
Comprehensive Review with Clinical Rationales
Ethics · Financial Reporting · Economics · Quantitative Methods · Corporate
Finance · Equity · Fixed Income · Derivatives · Portfolio Management
38 Comprehensive Questions with Verified Answers
Edition 1 · August 2026
✓ Institution Verification
VERIFIED This document was independently verified as belonging to CFA Institute. This
comprehensive review covers the CFA Exam 2, including Ethics and Professional Standards
(Standards I–VII), Financial Reporting and Analysis, Economics, Quantitative Methods,
Corporate Finance, Equity, Fixed Income, Derivatives, Alternative Investments, and Portfolio
Management.
Table of Contents
,1. Instructions for Use 2
2. Practice Questions with Answers & Rationales 2
3. Appreciation & Review 8
CFA Exam 2 Page 1
, CFA EXAM 2 STUDY GUIDE INSTRUCTIONS & PRACTICE QUESTIONS
How to Use This Guide
Read each stem carefully, choose your answer, then review the rationale directly below. Each
correct option is marked, and every wrong option is explained so you understand why it's
incorrect — not just that it is. These questions are designed to mirror the CFA exam format and
professional standards required for the Chartered Financial Analyst designation.
Category: CFA Level I — Comprehensive Review
1 Gurdeep Singh, CFA, is an analyst with a hedge fund and works closely with his
supervisor, Joan Tanner, who earned her CFA designation 20 years ago. Singh
becomes aware that Tanner uses her CFA designation even though she no longer
pays her membership dues. Tanner uses the designation during several meetings
that she and Singh have with the firm's clients and emphasizes that all her team
members, including herself, are CFA charterholders. Has Singh violated the
Standards?
A No
B Yes, the Standard relating to knowledge of the law
C Yes, the Standard relating to reference to CFA Institute, the CFA designation, and the
CFA program
Why B is correct: According to Standard I(A), Knowledge of the Law, members and
candidates must not knowingly participate or assist in and must dissociate from any
violation of such laws, rules, or regulations. By staying silent in a client meeting in which he
knows false information is being given, Singh would be seen as assisting Tanner in providing
that false information. Singh should report her conduct to the fund's compliance
department and dissociate himself from the activity.
A — Singh has violated the Standards by not dissociating himself.
C — The primary violation is knowledge of the law, not reference to CFA Institute.
