Level 1 focuses on basic finance knowledge regarding asset valuation, financial reporting and analysis, portfolio management, simple analysis using investment tools. Although this is reasonable for Levels 2 and 3, the situation is different for the Level 1 Exam. Well, It is generally considered that candidates should devote more than 300 hours of study to pass each exam. One of the most common questions among candidates is how many hours a candidate has to dedicate to pass Level I of the CFA Exam. The same holds true for Level III, which has the highest pass rate.
Because previously successful Level I candidates will be taking Level II, Level II candidates have a higher probability of passing the exam regardless of the difficulty. This contradiction stems from the gradual system of the CFA Program. Nonetheless, it is an undeniable fact that the level I exam is the easiest of the three levels. Compared to other levels of the CFA Program, level I has the lowest pass rates. However, the pass rate is much lower for first-time exam takers and higher for those candidates retaking the exam for a second or third time. On the other hand, CFA Institute’s announced pass rates for the last three exams are around 43%. Though, it is widely acknowledged that candidates who get more than 70% in general without getting less than 50% in Ethics can expect to pass the exam. Although it is possible to estimate the passing score based on previous results, passing scores are not announced by CFA Institute and cannot be known. The board assesses the passing score according to the difficulty of exams and demonstrated competency of candidates. After the exam, CFA Institute Board of Governors sets the minimum passing score for each level. Pass rates and passing scores are other important points that should be considered by CFA Program candidates. This is one of the reasons why candidates often substitute the CFA Program curriculum for AnalystPrep’s Study Notes. These topics are divided into 58 readings and take from 75 to 150 hours to read.
CPA STUDY MATERIAL COMPARISON CHART PROFESSIONAL
Topics that are covered on the exam include Ethical and Professional Standards, Quantitative Methods, Economics, Financial Reporting and Analysis, Corporate Finance, Portfolio Management, Equity, Fixed Income, Derivatives, and Alternative Investments. All questions are weighted equally and candidates are not penalized for taking random guesses. Questions have three answer choices and there are two different question formats – sentence completing format and question format. Test takers have, on average, 1.5 minutes to spend on each question, which can be a daunting task considering the amount of calculation some of the questions require. In each session, there are 90 multiple choice questions and all topics are covered in each session. The exam consists of 180 multiple-choice questions and has two two-hour-and-fifteen-minutes sessions.
Candidates must have a good grasp of English as there is no other language option. Since CFA Insitute operates globally, the exam is offered in 170 cities in June and over 70 cities in December.
It’s the best way to prepare not just for the exam but also for levels II and III and your professional career itself.īefore enrolling for Level I of the CFA exam, it is favorable for candidates to have general information about it. However, we cannot emphasize enough the importance of covering every other topic. If a candidate scores well in these topics, chances of success are quite high. To make sure you attempt all questions, you should spend no more than 90 seconds (1.5 min) on each question.įinancial reporting and analysis, ethics, and quantitative analysis make up about 40% of the exam. Each topic has several learning outcome statements (LOSs) – equivalent to objectives – around which the exam is concentrated.Įach question is accompanied by 3 unique choices: A, B, and C. These include ethics and professional standards, investment tools, asset classes, and portfolio management and wealth planning. There are 10 topics categorized into 4 modules. Level I of the CFA exam is focused on acquiring basic knowledge on a wide range of financial issues.
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