I would like to finish the 3 levels before the end of my 2 year analyst stint. Someone commented on a recent CFA®
related thread saying that only 6% of the people pass the 3levels consecutively (not sure about the accuracy), and this got me thinking.
1.) Is this realistic assuming I take the exams Dec 2010, June 2011 and June 2012? Assume I don't have much knowledge of finance (non-finance background) beyond basic accounting and financial economics.
2.) In what sense do the exams get harder with each level - qualitatively (more detailed, more quant ... ?), or quantitatively (just a whole lot more material)?
3.) What would be a good strategy to accomplish this goal?
Just want to get an idea of how feasible this is. Would appreciate any serious responses.
Even if you did accomplish this incredibly difficult task, you wouldn't obtain your charter until you have accumulated 4 years of full-time qualifying work experience.
As for the difficulty, Level I is difficult but not terrible. I was only a business minor and I passed the first time. Not to be blown off either though. I would merely call it a sharp stick in the eye.
Level II is quite a bit more difficult both in breadth and depth of material. Nothing on its own is difficult per se, but the sum total is very challenging. The item set format on Level II ensures that nothing can be left to chance, whereas on level I, if something isn't clicking you are probably ok just skipping it if it is a rather small portion of the material. Level II is a dull stick slowly inserted in the pee hole.
I have yet to take Level III but the pass rates are quite high and it is writing intensive.
That Dec 10/June 11/June 12 thing is my goal. My main concern is whether I can actually be studying 18 hours a week on top of my job for 10 months straight. I'm interested in any answers people have to this as well.
10months is plenty of time. You wont even need 18hours/week for 10months.
I'm talking about doing L1 and L2 in ten months.
Are you an IB analyst? Unless you can study at work there's no way you're going to have time for that.
Nope, Quant. So, hopefully, I should get at-least 2 evenings a week to myself to study and have some free time also.
Thanks for the comments so far. Solved the sample qs on the CFA website as suggested, so now got a better idea of how to prepare.
I took level 3 earlier this month and can tell you from my experience that it is possible to take all 3 levels in 2 years. It will be, however, an endurance test like a marathon. But if you enjoy the subject matter it shouldn't be hard.
1) The material provided by CFA assumes you are a beginner. So your non-finance background should not be an impediment. It would just translate into more hours from your end.
2) L2 is universally considered to be more difficult than L1. The primary difference according to me is that L1 tests concepts, whereas L2 tests the application of these concepts in real world scenarios. L3 is 50% essay type, and 50% multiple choice type. (L1 & L2 are 100% multiple choice type). It is not harder than L2 in anyway.
3) Strategize to pass just one level at a time. You also need 3-4 years of finance related experience to get the charter. I used Schweser notes instead of CFA notes, which cut down my reading time significantly. Having said that, the CFA reading material is of very good quality. You might want to spend some time on cfainstitute.org and go through sample questions, subject matter etc. See how comfortable you feel.
Good luck! CFA preparation definitely helped me build a solid foundation in finance.
You assume that you will pass December. If your results don't come out until end of Jan/early Feb and its a possible fail, you're whole plan is off track.
I thinking of doing the same as well. I was told that if you study it shouldn't be a problem to pass. The ones that don't pass didn't study. You won't have to much of a life with the test and work but it's doable. If you would to know more pm me. good luck
Well I guess I would stop studying for L2 and go back to L1. I should still have time since stuff would be fresh in my mind. Then comes the question of how signing up/fees for that would work.
I signed up a little late and had a hard time getting comfortable with all of the content for cfa1 (econ major, took a few accounting courses in college + internships), on top of working only 50 hrs a week. It's a lot of information to process, and I'd focus on one level at a time. Have your firm pay for it + stalla or schweser if possible.
PM me and I'll send you a mock exam, if interested in getting more of a taste.
I've heard two is MUCH wider and deeper content wise than 1. If you get two under your belt, you're golden.
Ok, I was interested in finding the odds of me being able to accomplish this task (pass 3 exams consecutively). The math is pretty elementary, but I'm posting it here for whoever else might be interested.
Probability of passing all 3 exams non-stop: ~9.24% Probability of passing all 3 exams given you can fail any exam once: ~23.40% (This assumes chances of passing on the second try is the same as on the first. If you want to bump up the chance of passing on the second tryp by 20%, new probability is ~30%)
Chances of passing all CFA exams consecutively CFA exams while failing only 1ce CFA L1 pass-rate: 46% CFA L2 pass-rate: 41% CFA L3 pass-rate: 49% http://www.businesspundit.com/cfa-pass-rate-41-for-level-ii-49-for-leve…
Booth Acceptance Rate HBS Acceptance Rate
You are way underestimating the ability of one person to pass. There is high probability that someone who is able to pass the most difficult exam on the first try (CFA L2 rate of 41%) is also able to pass CFA L1 and CFA L3 on the first try. So your chances of passing all three in consecutive order is nowhere near as low as 9.24% it is going to be closer to the 41% range. Since it is YOU that is taking the exam, the sequential test to test chances of passing is largely determined by whether YOU fall into the smart, hard working batch or the not so smart not so hard working batch.
Put it simply, if you are one of the 41% capable of passing the CFA on the first try, you definitely have more of a shot at passing all 3 than just 9%
Also, keep in mind that those who passed a test do not ever return to take the same test. Only those who fail return and they keep counting in these pass rates. So the true pass rate for someone taking the test for the first time is likely to be 60%+. Given that 20%+ of those taking the test with you are those returning to take the test again are proven to be less capable and they skew the numbers.
I'd say you have a 50% chance to pass all 3.
(Disclaimer, just looking at the numbers, not speaking as someone who has taken the CFA)
As long as you don't lose focus, it's possible.
Many people have done it and many have tried and failed. If you are motivated and hard working you will be fine. The material is not particularly difficult there is just a lot to go over. If you study hard, are consistent, and stay focused it is very possible.
^im pretty sure your calculations are off. People taking lvl 3 are the 41% you mentioned that passed lvl2, the smart bunch that passed the most difficult test. But only 49% of those pass level 3.
Youre trying to condition the probability upon how smart the person taking the exam are (the OP), which you really can't.
Not realistic. It's ambitious and admirable, given that I had the same thought. But it's unrealistic. You're looking at several hundred hours of studying for all those tests. And unless you have a 9-5 job, you won't have the time or energy to consistently study like that for that long amount of time. You'll burn out. I talked to a finance prof at my school who teaches a CFA prep class at my school and does an online live class for Schweser and told him of my plans to knock out 2 exams in a year, given my current courseload/workload, and he recommended against it. He said give yourself more time, be conservative in your planning and estimates because your circumstances are likely to change so planning things on a best case scenario usually doesn't turn out too well in life. Be realistic and conservative, don't try to be superhuman and hammer it all out faster than most people.
CFA - How long does it usually take? (Originally Posted: 09/25/2007)
This might be the wrong place to ask but for people who already have their charters, how long does it usually take? I assume at least 4 years after college, but let's assume that you get your CFA I somewhere close to graduation (undergrad)...and if you fail the first time can you keep taking the exam until you pass? (not desirable as the exams cost like $600) Seemingly it's this really complicated process....you have to like pass the CFA I and have an undergrad degree to get a regular membership, then you have to like get 48 months work experience, and during (or after) that time you have to take both the CFA II and CFA III, which I guess are really really hard....
I'm thinking about starting to read up on some of the CFA I stuff (still in college). So how long did it take you? Share.
And by the way, does the CFA designation really help in the long run or is it just a waste of time, effort and money?
avg cfa holder is 31 when they get charter. However, this is not the place to ask. Most people on here are in banking,pe,hf,trading or students.
If you plan on working in any of those fields then you can count the CFA as useless.
If you plan to work in IM,AM research then it will help a ton.
Use this board as a resource but not as a replacement for your own research. http://www.cfainstitute.org/
A CFA can help you in asset management, trading, and HF. A CFA cannot hurt you and does add to your credibility as a job candidate and/or prospective b-school student. I would double check your facts as some of them seem innaccurate.
come play at analystforum.com
I am currently pursuing my CFA and have found it to be extremely useful in my position in PE and IB. Furthermore, many HF we work with in PE hold their CFA and/or have several in their office. I would encourage you too look at the job qualifications of some of the positions you hope to one day apply, undoubtedly you will see quite a few asking for a CFA or MBA-equivalent.
You are correct about the time line in getting the designation. And yes the exams are very difficult. On average they recommend about 280 hours of study time prior to the test, I studied well beyond that on my level to be safe. I only wanted to study for it and pay for it once. The level one pass rate for 2007 was 40%.
According to the CFA Institute, the total median compensation gap between those with and without the charter is 35%. This varies by country.
The charter has come under some fire as of late because so many people are taking it and pass rates are higher, there is a concern the "eliteness" is being lost. The Institute is taking steps to restore some of the prestige.
Some also see it as an alternative to business school that does not require the opportunity cost associated with leaving your job to attend a top program.
this years scores were much lower then 40% not much lower
please give me some explains?
I gave a very dry reply but it was not bs
i think people were referring to when you said the CFA was completely useless in banking/pe/hf/trading
Is CFA useful for the risk management division of an ib?
I recently passed level II of the CFA, and I can tell you without a doubt that it helped me reach my current position. I come from a credit background, which is typically not a target background for PE positions. However, I feel that the CFA gives you a certain amount of credability with regard to general finance knowledge (i.e. modeling, capital markets, economics, financial statement analysis) that allows potential employers to overlook the modeling experience that might otherwise be missing. I just started work at a large asset management firm/hedge fund that has recently moved into the PE arena. Without the CFA background, I would never had a shot at this position.
It might be less useful if you are already working in a corporate finance position, but for those of use without that background that are looking to break into PE, it is invaluable. Either way, it is never a bad thing to have on your resume.
I have passed CFA L3. I work in I banking now.
CFA is not directly relevant to ibanking per se but it
i. does have a good signalling effect ii. i wish i had payed more attention to FSA on Level 2 - it helps with the work i'm doing now with all that consolidations, pension stuff... iii. potentially helps with exit ops (though I haven't tried it yet). iv. I reckon if you get the charter it will help in the long run. Now that's different from simply passing Level 3. Getting the charter entails having 4 years relevant work experience... a bit of a chicken and egg situation eh?
There's no modelling involved with CFA. Just pure finance theory...
Risk -> I thought FRM was more relevant to that?
Anyone who says that a CFA is not useful in a HF is retarded. If you will ever or dream to be a manager of money at a HF you need a cfa, end of story.
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