Multiple choice questions are used to test knowledge on both the Level I and II exams, but there is a significant difference in the formats of the two exams. The Level I exam is an onslaught of multiple choice questions grouped by subject, but not tied to another question in any way. Level II, on the other hand, groups questions in "item sets". This difference in exam format changes the way candidates need to prepare for the exam.
"How should I study for the CFA exams?"
-Anonymous
In my previous article, “When Should I Start Studying for the CFA® Exam?”, I outlined how a candidate should prepare for the CFA Level I, II, or III exams in June and the CFA Level I exam in December.
The most important point I raised in Part I is that you should have finished reading the curriculum readings and/or your prep provider’s materials by April 15th if studying for the June exam and October 15th if studying for the December exam.
This second article will help you understand what you should be doing from April 15th until the June exam day or from October 15th until the December exam day. If you have completed the CFAI curriculum readings or the prep provider’s materials by April 15th or October 15th, it is not time to kick back and relax. In my opinion, you have only completed 50% of the work if you are a Level I candidate, 40% of the work if you are a Level II candidate, and only 30% of the work if you are a Level III candidate that is needed to be prepared for the exam.
I think that pursuing a Chartered Financial Analyst (CFA) designation requires commitment from the candidate along with support and understanding from their family, friends, employers, and colleagues. As a Level I CFA candidate, I started to study for the exam at the beginning of August 2011 by enrolling in the CFA preparation course offered by New York Society of Security Analysts (NYSSA). I find the course helpful and interesting because my instructor was very knowledgeable and has a great sense of humor. Three and a half hours each Monday fly by. I know that all of us candidates worry, and may be nervous ahead of the exam. There are many strategies available, and a large part of them have been covered previously, but here are a few of the study strategies that I am using to get through the CFA® exams.
If you stay focused and composed, you will maximize your performance on the CFA exam. It’s hard to argue with that! Follow this game plan to minimize stress and increase your chances of success on exam day.
Continue reading "Maximize Your Performance on the CFA Exam" »
You’ve studied diligently for the last several months, plowing through endless pages of material, answering countless practice questions, and meeting weekly with your study group. Now what? With less than a month to go before exam day, what is the best use of your time?
Continue reading "Studying for the CFA Exam: The Final Countdown" »
When should I start studying for the CFA® exam?
- Anonymous
This is a timeless question and I can’t think of any class I taught where this has not been asked. It is also not level specific. I have heard it from Level I, II, and III candidates. As we have covered in the past, studying for any CFA® exam is not to be taken lightly.
Continue reading "When Should I Start Studying for the CFA Exam?" »
It is an innocent and common mistake for Level III candidates. Most will not even know it can be so costly. Listen to Nathan Ronen give key advice to CFA Level III candidates here.
Learn more about NYSSA's CFA® exam instructors, or register for CFA® Exam prep here.
“I am studying for the CFA Level II examination again because I did not pass it the first time. I bought all the curriculum readings and I have last year’s prep provider’s study notes. Can I use these materials again or do I need to buy everything a second time?”
-Anonymous
Continue reading "Can I Reuse Study Materials for the CFA Exam?" »
There are several benefits to preparing for the CFA exams in groups, including confidence building. Louise A. Howard, CFA, CAIA, Senior Investment Analyst for the YMCA Retirement Fund, explains here.
“Excellent, valuable, amazing, unique, extremely helpful”—words that are not easily spoken when referencing the CFA exam. That is, unless you experience CFA exam prep Nathan Ronen–style.
The popular instructor and CFA charterholder will return to the New York Society of Security Analysts in January 2012 as CFA® Lead Instructor to teach CFA exam prep courses for Levels II and III of the June 2012 exam. Ronen’s track record is impressive. He has been teaching CFA Levels I, II and III for over 16 years and has helped over 20,000 candidates pass the CFA exams. Part of his success is attributed to his background. He understands the pressure that candidates face, having earned a CFA charter while working in finance. “I don’t believe in merely reciting the CFA curriculum back to students. That’s not teaching the material. Candidates who have had me for Level I or Level II know that my ability to hone in on essential points and take the most difficult concepts and break them down to a simpler form is what helps them pass on exam day,” says Ronen regarding his teaching style.
Of course, Ronen’s strong knowledge of the financial markets, from years of working in the financial sector, is another valuable resource in his teaching style. He served as a supervisory analyst training government regulators, an accounting analyst, and a corporate finance analyst. His professional experience encompasses well-known organizations such as New York Life, NASD, and Salomon Brothers.
In addition to teaching CFA exam preparatory courses for NYSSA, he has taught for the Washington Society of Security Analysts and the Study Seminar for Financial Analysts (SSFA). Ronen has also taught in-house CFA seminars at Goldman Sachs, Merrill Lynch, Citigroup, and many other major financial institutions.
Click here for more information on NYSSA CFA Exam Prep Courses.
In order to pass the CFA exams, you must show you’ve mastered the material. Unfortunately many candidates follow a study strategy that severely hurts their chances of passing the exams.
TYPICAL CANDIDATE EXAM STUDY STRATEGY
Continue reading "Are Your CFA Study Strategies Working against You?" »
If I told you I was going to run up the block and back to my house every day for a year and when I was done, I would be ready to run a marathon, do you think I would be successful? Of course not! But many candidates take the same approach to preparing for the CFA exams.
If your study approach resembles my marathon training scenario, you probably do problems in little chunks of time topic by topic—perhaps during commercial breaks during your favorite TV shows. I’ll agree that over a week’s or month’s time you may have actually completed a full exam. But that’s not the same as sitting down for two 3-hour exam blocks. The outcome looks to be the same but it isn’t. That’s because you are training for a sprint when you should be training for a marathon.
Continue reading "To Pass the CFA Exam—Train for a Marathon!" »
If done right, participating in a study group is one of the best ways to prepare for the CFA exams. An informal survey of candidates in study groups shows that successful study groups are:
Committed. Study groups only work if people attend consistently and contribute regularly. Meet once a week at a set time and place. So show up to each and every meeting! Agree on an attendance policy and hold members accountable.
Reliable. Come prepared to discuss that week’s topic. All group members should read the curriculum, do associated problems and/or construct practice questions beforehand.
In the final part of William A. Trent's speech, he provides candidates with detailed test-taking tips for the day of the exam.
In the second part of William A. Trent's speech on CFA exam strategies, he outlines some of the simple missteps that can trip up candidates.
At NYSSA's CFA Level I Orientation, William A. Trent, director of the exam development division at the CFA Institute, offered up his multipart strategy for passing the CFA Exam. In the first part of his speech he advises candidates to practice often and avail themselves of the materials on the CFA Institute website.
ONE: CONSTRUCT YOUR OWN MULTIPLE-CHOICE QUESTIONS
What? Why should I construct my own questions when there are plenty of study banks and practice exams out there? Here’s why. Constructing your own multiple choice questions:
Continue reading "Two Ways to Take Studying for the CFA Exam to the Next Level " »
Preparing for the CFA exam is a daunting process: not only do experts suggest that candidates put in hundreds of hours of study time for each level of the exam, but also the numbers show that even if you put in that kind of time there is no guarantee that you’ll pass. The good news, however, is that you don’t have to go it alone. The old adage claims that two heads are better than one, but don’t just trust the old wives—there’s scientific evidence to back it up.
Some readers thought I was being a little harsh when I advised candidates that they shouldn't expect to pass the CFA exam the first time around. But, sadly, it's a fact that most candidates will fail the Level I exam. The numbers improve slightly as candidates progress, with nearly half of test takers passing Level II, and slightly more than half passing Level III. It can be a real blow to discover you failed, but heading into the exams knowing that you might have to take them more than once will make it easier for you to bounce back.
There's nothing worse than walking into an exam unprepared. You've been studying for months and you know the material cold, but how will you be tested on it? Check out our CFA Prep Podcast for a look at the format of the CFA Exam Levels I, II, and III.
If you want to hear the webcast of this entire event or any other NYSSA program, visit NYSSA's On-Demand website.
For those who took the CFA exam two weeks ago, the hardest part is over—or is it? Waiting for the results can be an excruciating process. After having poured months of effort into preparation (or years, if you’re taking Level II or III), candidates now have to wait 60 to 90 days to discover whether they’ve passed an exam with a notoriously high fail rate.
Over the past few decades, psychologists have discovered that our perception of time can be affected by a number of factors that can either mitigate or exacerbate our anxiety about waiting. Here are some simple suggestions to help ease the pain of waiting for the results of your CFA exam.
Continue reading "Three Tips to Make Waiting for CFA Exam Results More Bearable" »
From an analysis for a client, to a decision about when to buy that stock you’ve been watching, your job tests you every day. If you’re taking the June exam to become a Chartered Financial Analyst (CFA) the test is not just a figure of speech: it’s an impending reality. Even if you have figured out how to manage a portfolio, the prospect of three six-hour-long exams is understandably daunting. Are you nervous about taking tests? Are you wondering how you can turn test-taking stress into test-passing confidence? Our look at recent scientific research on test-taking and anxiety will help you manage your stress and get the test results you need.
Continue reading "Three Stress-Reduction Tips For Acing the CFA Exam" »
Being a Chartered Financial Analyst may bring honor and recognition from your colleagues and clients, but getting the “CFA” after your name is a long-term endeavor. Certification requires that you pass three six-hour exams that take years to complete and less than half of the candidates last year passed their tests.
If you’ve already signed up to take the test this June, you’ve probably already been studying. Lots of companies offer services to help you pass the test, and even more websites dole out advice on how to study. Much of what passes for wisdom in test taking, however, is wrong. Your high school teacher may have encouraged you to find a quiet, uncluttered place to study. According to decades-old research, your high school teacher was wrong. What seems intuitive might actually create more frustration for you on test day.
Continue reading "Six Counterintuitive Study Tips to Help You Pass the CFA Exam" »
It's been one year since NYSSA launched the FPP, and the readers have spoken: hot topics include career development, landing a job (not surprising!), behavioral finance, emerging markets, and quantitative methods. Here are the ten most popular articles from the previous year in case you missed them the first time around. If you would like to suggest new topics for the FPP to cover, please take a minute to fill out our reader survey. (Everyone who completes the survey is automatically entered in a drawing to win an Amazon Kindle and a selection of e-books from the FT Press.)
1. Five Things NOT to Do if You Want to Pass the CFA Exam
With pass rates lower than 50%, the CFA exams are daunting for even the most seasoned financial professionals. Approach the process strategically and avoid these common mistakes.
Continue reading "Anniversary Special: Top Ten Articles from the FPP" »
With the December 2010 CFA exam fast approaching, it may seem like the perfect time to panic. However, you can put your mind at ease by listening to several recordings of experts from the CFA Institute and NYSSA explaining the CFA testing process.
The clip provided below is from the CFA Exam Orientation. William A. Trent, director of the exam development division at the CFA Institute, outlines the different requirements for CFA Level I, II, and III as well as how some questions (particularly essay questions) are graded.
If you want to watch the webcast of this entire event or any other NYSSA program, visit NYSSA's On-Demand website.
In this short clip, Jackie Rosner, a CFA charterholder working at UBP Asset Management, talks about the advantages of taking review courses for all three levels of the CFA exam. “It's almost impossible to really get a complete understanding of everything, no matter how motivated you are,” he says. Moreover, Rosner adds, review classes help build confidence.
In this week's CFA Prep Podcast, Nathan Ronen answers the commonly asked question: "What is passing?" Some students believe that they will pass if they answer 70% of the questions correctly, while others say that a minimum of 170 questions must be correct. But, as Ronen explains in this clip, there is no magic number.
In this clip from Nathan Ronen's CFA Level I sample class, he teaches a unique strategy to taking the CFA Level I exam, which he calls the 60-30-10 game. "Sixty percent of the material gets asked over, and over, and over again," he says. Click to listen and find out what are the common topics in the exam.
In this clip, Nathan Ronen, CFA instructor at NYSSA, recommends one of his test taking strategies referred to as the “45-Second Rule.” Ronen advises students not to remain fixed on one question, but to “get as many easy questions as you can, and then move on.” In addition to understanding the material, test-takers should learn tactics and strategies on approaching the exam.
If you want to watch the webcast of this entire event or any other NYSSA program, visit NYSSA's On-Demand website.
In this clip from the CFA Level I Sample Class, instructor Andrew Spieler addresses how the financial reporting transition from US GAAP to IFRS will have a large effect on the CFA Level 1, Level 2, and Level 3 exams. “IFRS is now the dominate part of the CFA curriculum,” Spieler notes. CFA students will need to be prepared in order to manage this transition in the exam.
Suffice to say, considering the relatively low pass rate, getting through the rigors of all three exams to become a CFA charterholder is not an easy task. But there are many ways you can shoot yourself in the foot.
Aside from not putting in the study time—recommended at around 300 hours per level—there are surprisingly common mistakes or assumptions people taking the exam make, which often make the different between a pass and a fail.
Click here to read the full article.
In this clip from the CFA Level I Orientation, instructor Andrew Spieler explains that the key to earning certification is taking a holistic view of the CFA program rather than focusing on each individual exam. He also warns students that passing requires not only knowledge of the material but also the exam structure itself.
Andrew Spieler, PhD, CFA, FRM, teaches CFA prep at NYSSA. He will be teaching a Free Level I Sample Class on August 31, 2010. His Level I Weekly Review Sessions for the December 2010 exam start on September 14, 2010.
In this clip from the CFA Level I Orientation, William A. Trent, director of the exam development division at the CFA Institute, offers 10 essential strategies that every student should follow when preparing for CFA exams. Though Trent warns students that earning a CFA can be a difficult process–with the global pass rate averaging only 40% for the June 2010 exam–he noted that "more and more CFA designation is held in high regard by employers."
If you want to watch the webcast of this entire event or any other NYSSA program, visit NYSSA's On-Demand website.
Continue reading "CFA Prep Podcast: Top 10 Tips for the CFA Exam" »
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