- CFA Institute (2024)

FAQs

Is CFA Institute material enough? ›

While the CFA Institute curriculum is necessary for passing the exam, more applied experience is needed to become a successful finance professional. For example, the CFA curriculum does not cover the day-to-day skills necessary for working as a portfolio manager or research analyst.

The exam is composed of 90 questions in the first session and 90 questions in the second session. To pass this exam, aim for correctly answering at least 75% of the questions. That means you need to correctly answer at least 180(0.75) = 135 questions total, or about 68 questions in each session.

CFA Institute has created a compelling practice package of mocks and questions that are as exam-accurate as possible. Although not included with the exam fee, the USD299 price is pretty reasonable for what you get.

CFA vs CPA Exam difficulty

Both are challenging and require gaining skills and knowledge in complex topics. However, the CPA Exam generally requires less studying - around 80 to 120 hours per section compared to 300 hours per section of the CFA Exam, and the CPA Exam also has a higher pass rate.

No, studying for any CFA exam in less than 6 months will not give you enough time to adequately prepare unless you have a relevant background in the curriculum. According to CFA Institute, candidates study on average 348 hours for the Level I exam, 364 hours for the Level II exam, and 365 hours for the Level III exam.

6 months are definitely sufficient to prepare for your level 1 CFA exam. With 6 months, you can easily plan for roughly 400 hours of studying during your exam prep.

To pass CFA Level I, you probably need to target 70% in as many topics as possible... In other words, you don't have to get more than 70% in everything to pass. Some say you can get as low as 65%, or even 63%. You don't even need to get more than 51% in everything to pass.

Level 1 pass rates have hovered around 37% Level 2 pass rates have been around 45% Level 3 pass rates have been better around 52% COVID had an impact on the CFA exam pass rates.

It is possible to pass the CFA Level 1 exam by studying the bare minimum and guessing on the questions that are not known. However, it is not a recommended approach and the likelihood of passing is not guaranteed.

Generally, our research shows that candidates' CFA Level 1 hardest topics are Financial Statement Analysis, Fixed Income, Quantitative Methods, Derivatives and Economics. Meanwhile, CFA Level 2 most difficult topics are typically Financial Statement Analysis, Portfolio Management, Ethics and Derivatives.

Are CFA Institute mock exams harder? ›

Are CFA Practice Questions Harder than the Actual CFA Exam? CFA practice questions are designed to be similar to the actual exam questions at every level. If candidates are experiencing difficulty with practice questions this usually means that candidate is not fully prepared or their nerves got the best of them.

A survey carried out using a sample of 50 CFA Level I candidates reveals an average IQ of 105. Assuming that IQs are distributed normally, carry out a statistical test to determine whether the mean IQ is greater than 100.

CFA vs CPA Salary: Everything You Need to Know. The average salary for a CFA charterholder ranges anywhere from $51,000 to over $274,000, while CPAs may earn an annual salary ranging from $50,000 to upwards of $240,000.

With a pass rate of less than 11% for all three levels, the CFA passage rate is lower than most state bar exams. Virtually everyone who has taken all three exam levels will tell you it is one of the most time intensive and difficult exams they have ever sat for.

Career aspirations: While there is certainly overlap in how business school graduates and charterholders apply their expertise, MBA programs are generally ideal for professionals who want to pursue management positions in any industry. A CFA designation suits professionals dedicated to working in the finance industry.

The CFA syllabus is vast and covers a broad range of topics, so selecting the right study materials can significantly affect how well you perform on the exam. The CFA Institute books are the most comprehensive, but their length can make studying them challenging. This is where Schweser notes can come in handy.

The CIPM program is recognized on FINRA's list of professional designations in the investment field. The CFA Institute Investment FoundationsTM Program is accredited by the Florida State Bar for MCLE Credits.