Chartered financial analyst® designation is a professional credential that is offer by the CFA institute to the financial and investment professionals. The designation of the Chartered Financial Analyst or CFA® Charter is the most recognized and respected credential in the field of investment banking. It is a globally recognized credential.
There are three levels in CFA® Program that students will have to go through. Based on the historical data, pass rate for the CFA® examination is about forty percent. There is a wide range of topics related to investment management, stocks, derivatives, financial analysis which give you great understanding of everything you need in order to become a better Financial Analyst/Investment banker.
CFA® Level I Exam:
This is the first examination that students will have to go through. In level one, students will have to focus on the concepts and tools that are applied to investment management and valuation.
The Level 1 CFA® exam is conducted in two sessions, each 3 hours long. It consists of 240 multiple-choice questions in two sessions of 120 questions each. The questions are designed based on the topic weightages given in the CFA® Level 1 Exam Syllabus, with very slight deviation.
CFA® Level II Exam:
This is the second examination that students will have to go through after passing the CFA® level I Exam. In Level II, students will have to deal with the assets valuation. Students must have the ability to apply the concepts and tools that they have learned in level I.
There are total 20 item set questions, split in two sessions. The morning and evening sessions have 10 item set questions each. The total number of questions in the CFA® Level II exam is 120. The duration of the exam is 360 minutes. Some of the CFA® level II topics are covered only in the morning session and other topics are covered only in the evening session.
CFA® Level III Exam:
This is the last CFA® exam that students will have to pass to become a CFA® charterholder. In the level 3 examination, students will have to go through portfolio management in depth. CFA® Level I and CFA® Level II revolved around basic financial knowledge, investment valuation comprehension and the application of both. CFA® Level III exam focuses on portfolio management and wealth planning.
The exam format of CFA® Level III is a mix of item set questions and essay type questions. The duration of the exam is 6 hours long and is written in two sessions. The morning session and the evening session.
In the morning session, there will be 10-15 essay type questions. The questions usually describe either a case study or a hypothetical situation to which students need to either construct a solution and explain it or suggest measures to handle it.
In the afternoon session, there are 10 item sets. Each item set consists of a case statement followed by six multiple-choice questions.
Overview of CFA® exam Format:
|Level I||Level II||Level III|
|No of Questions||120||120||60||60||12||10|
|Type||MCQ||MCQ||10 Set of Items||10 set of Items||Essay||Set of Items|
|Duration||6 Hours||6 Hours||6 Hours|
|Passing Score||70%*||Above 70%*||50-70%* Approx.|
Note: * These numbers vary every year. This is just an approximation based on the historical data.
On the internet you are going to find plenty of tips that will help you in making the preparation easier. It is important that you plan a strategy for each level as each one of them is different from one another. If you have already made the decision of going for CFA® and are looking for a training institute , then EduPristine is a great option as we are CFA Institute authorized training providers
If you have any other queries then mention them in the comments box below and it shall be solved at the earliest. We provide both Online and Classroom trainings for CFA® Certification.