CFA Level 2 Alternative Investments Mock Test 2026

Alternative Investments carries 5 to 10 percent of the CFA Level 2 examination. Level 2 is delivered entirely as item sets, so this area reaches you as vignettes with four questions each rather than as standalone problems, and the vignette will usually contain more information than any single question needs.

The alternatives area covers real estate valuation through income, cost and sales comparison approaches, private equity fund structures and valuation, commodity pricing and the components of futures return, and hedge fund strategies with their fee structures.

This free Set 1 paper is built as vignettes on the real Level 2 format, timed to the pace of the actual exam, with a full explanation on every answer and a report card showing which parts of the area are costing you marks.