Quality of Financial Reports and Earnings | CFA Level 1 - AnalystPrep (2024)

FAQs

Is CFA Level 1 good enough? ›

While having completed the CFA Level 1 signals to employers your knowledge and passion for the realm of finance, it will not secure you anything. In my chats with people working in various roles, in most cases, the CFA Level 1 is an “asset”, but the knowledge you gain from it isn't prerequisite for the role.

Passing the CFA Level I exam, which has around a 40% pass rate over the past years, requires following a solid study plan. Successful Level I candidates spend more than 300 hours preparing for the exam on average.

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.

Studying for the CFA Level I exam is crucial, and it takes a substantial effort. There are no shortcuts. The one thing standing between you and success on the Level I CFA^® Program exam is hard work. CFA Institute recommends you aim to spend at least 300 hours preparing for the Level I exam.

Key Takeaways. The Chartered Financial Analyst (CFA) qualification is a big asset for an investment professional and should be highlighted on a resume. The CFA Charterholder Program involves passing three six-hour exams and putting in four years of investment-related work.

CFA exams are not easy, and Level 1 is just the start. Commonly cited as one of the world's hardest exams, CFA Level 1's difficulty is comparable to a diploma level and gets harder from then on.

For the majority of candidates, we recommend a 6-month study plan. This would break down to about 12 hours per week or two hours per day for 6 days per week. Skipping one day each week would allow you to relax and prepare for the next week's activities.

4+ years to complete the CFA program; 300+ hours of studying per Level. 6 months of preparation for each exam (i.e. about 11.5 hours study per week assuming 300 hours)

Generally, our research shows that candidates' CFA Level 1 hardest topics are Financial Statement Analysis, Fixed Income, Quantitative Methods, Derivatives and Economics.

Practice...a lot! CFA exams are lengthy (6 hours for each level), so time management is crucial. Absorbing information is one thing, but you're also going to want to put that knowledge into practice so that you can work on quick recall and to ensure that you're understanding the questions.

How to pass CFA Level 1 in first attempt? ›

Start Early and Plan Thoroughly

For each exam level, the CFA Institute recommends investing study time of about 300 hours. You should create a detailed study plan that covers all the required material, including the use of practice questions, readings, and mock exams.

Candidates are permitted to take the exam a maximum of two times per calendar year (when applicable), but not in consecutive windows or windows that are six months or less apart. Candidates will have a total of six maximum attempts per exam level.

Clearing the CFA Level 1 exam is a challenge. You must invest considerable effort and time to prepare for the exam. While devising a study plan, you must keep 350 hours of study for the Level 1 exam. Ideally, you must start studying for the CFA Level 1 exam for a minimum of 6-9 months before the examination date.

The CFA Institute recommends at least 300 hours of study for each level of the CFA exam. Depending on how many months you have before the exam, calculate how many hours you should study each week.

As a firm with a deep understanding of the CFA exam process and as a CFA charter holder with nearly a decade of industry experience, we can confidently say that 600 hours of study is generally considered adequate to clear the CFA Level 1 exam. However, this is not a one-size-fits-all scenario.

It's a common question, with 48% of CFA candidates looking to change job functions. In short, ​the CFA charter alone is not going to help change your career, but it becomes powerful when combined with heavy networking and intense job hunting.

Here's what you should know about pass rates on the CFA: Average pass rates tend to fluctuate. Level 1 pass rates have hovered around 37% Level 2 pass rates have been around 45%

The CFA Level 2 exam is considered the toughest, known for its extensive material to cover.