CAIA Level II - Exam Topics (March 2021 Exam)

Level II Topic	Approximate Exam Weight
	Multiple Choice	Constructed Response
Ethics, Regulation, and ESG	0%	10%
Models	8-12%	0-10%
Institutional Asset Owners and Investment Policies	8-12%	0-10%
Risk and Risk Management	8-12%	0-10%
Methods for Alternative Investing	8-12%	0-10%
Due Diligence and Selecting Strategies	8-12%	0-10%
Volatility and Complex Strategies	8-12%	0-10%
Current and Integrated Topics	0%	10%

CAIA Level II - Outline

Ethics Regulations and ESG

• Asset Manager Code
• Recommendations and Guidance
• Global Regulation
• ESG and Alternative Investments
• ESG Analysis and Application

Models

• Modeling Overview and Interest Rate Models
• Risk Credit Models
• Multi-Factor Equity Pricing Models
• Asset Allocation Processes and the Mean-Variance Model
• Other Asset Allocation Approaches

Institutional Asset Owners and Investment Policies

• Types of Asset Owners and the Investment Policy Statement
• Foundations, and The Endowment Model
• Pension Fund Portfolio Management
• Sovereign Wealth Funds
• Family Offices and the Family Office Model

Risk and Risk Management

• Cases in Tail Risk
• Benchmarking and Performance Attribution
• Liquidity and Funding Risks
• Hedging, Rebalancing, and Monitoring
• Risk Measurement, Risk Management, and Risk Systems

Methods for Alternative Investing

• Valuation and Hedging Using Binomial Trees
• Directional Strategies and Methods
• Multivariate Empirical Methods and Performance Persistence
• Relative Value Methods
• Valuation Methods for Private Assets: The Case of Real Estate

Accessing Alternative Investments

• Hedge Fund Replication
• Diversified Access to Hedge Funds
• Access to Real Estate and Commodities
• Access Through Private Structures
• The Risk and Performance of Private and Listed Assets

Due Diligence & Selecting Managers

• Active Management and New Investments
• Selection of a Fund Manager
• Investment Process Due Diligence
• Operational Due Diligence
• Due Diligence of Terms and Business Activities

Volatility and Complex Strategies

• Volatility as a Factor Exposure
• Volatility, Correlation, and Dispersion Products and Strategies
• Complexity and Structured Products
• Insurance-Linked and Hybrid Securities
• Complexity and the Case of Cross-Border Real Estate Investing

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Course Curriculum

CAIA-L2: Demo Lectures	FREE	00:00:00
CAIA-L2: Ethics, Regulation, and ESG		00:00:00
CAIA-L2: Models		00:00:00
CAIA-L2: Institutional Asset Owners and Investment Policies		00:00:00
CAIA-L2: Risk and Risk Management		00:00:00
CAIA-L2: Methods for Alternative Investing		00:00:00
CAIA-L2: Accessing Alternative Investments		00:00:00
CAIA-L2: Due Diligence and Selecting Strategies		00:00:00
CAIA-L2: Volatility and Complex Strategies		00:00:00