The CFA Exams
I took the CFA level III exam this past weekend. Now that I’ve taken all three exams, I have some thoughts on the experience.
First, the curriculum is worth studying. I initially signed up for the exams after looking through a level 1 study guide and thinking that I wanted to know the material better. In fact, I think it’s fair to say that anyone working in investment management should know most of material, and anyone managing money should know almost all of it.
Second, it’s not redundant with an MBA, a CPA, a PhD (even in finance), or any amount of work experience. Indeed, the exams are gratifyingly broad, covering everything from abstract finance theory to prosaic everyday details of security analysis, across every major investment area. That broad coverage is the best thing about the CFA exams.
Finally, it’s not hard. Okay, that’s not really true. The material, taken together, is hard, but only because it’s a lot of material. Most of it, taken in small pieces, is easy to teach yourself. It just takes a while to get through all the pieces. A little bit of time every day is all that’s required (really).
Update: Results are out. I passed. Here are the pass rates:
Level I Pass Rate: 40%
Level II Pass Rate: 48%
Level III Pass Rate: 76%
I'm a little surprised that the pass rate for Level III is so high, even though I did think the Level III exam was the easiest of the three exams (II was the hardest).
First, the curriculum is worth studying. I initially signed up for the exams after looking through a level 1 study guide and thinking that I wanted to know the material better. In fact, I think it’s fair to say that anyone working in investment management should know most of material, and anyone managing money should know almost all of it.
Second, it’s not redundant with an MBA, a CPA, a PhD (even in finance), or any amount of work experience. Indeed, the exams are gratifyingly broad, covering everything from abstract finance theory to prosaic everyday details of security analysis, across every major investment area. That broad coverage is the best thing about the CFA exams.
Finally, it’s not hard. Okay, that’s not really true. The material, taken together, is hard, but only because it’s a lot of material. Most of it, taken in small pieces, is easy to teach yourself. It just takes a while to get through all the pieces. A little bit of time every day is all that’s required (really).
Update: Results are out. I passed. Here are the pass rates:
Level I Pass Rate: 40%
Level II Pass Rate: 48%
Level III Pass Rate: 76%
I'm a little surprised that the pass rate for Level III is so high, even though I did think the Level III exam was the easiest of the three exams (II was the hardest).
posted by Marc Shivers at 11:04 PM
9 Comments:
Marc,
Congrats on passing the first two exams and I'm sure you passed the third!
I hear that these exams are tough. Being an engineer I'm curious to see what kind of subjects are presented and how heavy duty the quant is.
Could you recommend a site where I can get an old cheap version (last years)of CFA study material?
Thanks,
"D"igital Breakfast
Marc, congrats on passing Levels 1 and 2. While I think the exam is valuable, I worry about the number of people taking it worldwide (and passing), diluting my differentiation from non-CFA charterholders. Oh well...
P.S. I will have to check to see if you work with my fraternity brother R.G. at Citadel. What other "major hedge fund in Chicago" is there? :)
Bond investor, CFA
I only took CFA Level 1 last weekend and already agree with you on many points. Was it difficult for you to wait for the results? How you felt after exams?
I admire your confidence on your exam. I took Level 3, too, and am anxiously waiting for August.
I find your message that the CFA exam limited your blogging amusing. I just wrote the same thing!
DB: I know cfainstitute.org has study guides on their site, but they're only in broad outline form. For more detailed studying, I used Schweser, which I thought was well worth the money, especially their Secret Sauce summary book.
B.I.: Do you know Ryan?
Cherolex: Good luck with the next two exams. By the time I actually got my results, I had forgotten to expect them, so it was a nice surprise.
Marc,
Did you use the Schweser notes? If so, do you think they provide ample amount of questions and material to prepare for the exams?
Thank you
Regards,
Toney
Toney,
Yes, I did used Schweser. Their notes have plenty of questions; almost more than you can reasonably work through. Their "Secret Sauce" summary book is also great for last-week cramming and review.
Good luck on your exam,
Marc
Hey Marc,
Congratulations on passing the CFA. I am planning on writing level I this December. But I am not sure if 3.5 months would be enough time to prepare. I am an undergrad finance student in my final year. What do you think? Any advice would be appreciated.
Thanks,
Sree.
The Level III pass rate is probably high because Level II is the great weeder-outer. I think most who ultimately don't pass all three quit after Level II.
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