Quantitative Methods, Economics, and Financial Statement Analysis: CFA Level 2 2026

This book is your roadmap through three of the toughest subjects on the exam. We start with Quantitative Methods. You'll build a strong foundation in multiple regression and its assumptions. We show you how to evaluate a model’s fit and interpret its results. You'll learn to spot and correct model misspecification. The book also covers extensions of multiple regression. From there, we transition into the complexities of Time-Series Analysis. We then bring you into the modern era of finance with clear introductions to Machine Learning and Big Data Projects. Next, we simplify the world of Economics. You'll gain a thorough understanding of currency exchange rates and their equilibrium value. We also unpack the theories and drivers of economic growth. Finally, we tackle Financial Statement Analysis. You will master intercorporate investments and employee compensation, including post-employment and share-based plans. We clarify the accounting for multinational operations and teach you the unique aspects of analyzing financial institutions. You'll develop a critical eye for evaluating the quality of financial reports and learn to integrate all these techniques for a holistic analysis.

What sets this book apart from other prep materials? It’s our commitment to clarity and practical application. We know other guides can be dense and academic, burying key concepts in jargon. This book is different. It's written in a simple, conversational tone, like a mentor guiding you through each topic. We bridge the gap between abstract theory and the real world by using intuitive examples. We focus on the 'why' behind the formulas, not just memorization. This approach ensures you’re building a deep, lasting understanding that will serve you throughout your career. While other books tell you the rules, we show you how to think like a charterholder. This focus on intuition and application is our unique advantage, designed to give you the confidence and competence needed to excel on the exam and beyond.

Disclaimer: The author of this book is not affiliated with the CFA Institute. This publication is independently produced and is not endorsed, sponsored, or approved by the CFA Institute. CFA® is a trademark owned by the CFA Institute. This book is intended for educational purposes and is sold under the principle of nominative fair use.