1. Florida Subject Area Examination Study Guide

. About CFA® Program The Chartered Financial Analyst (CFA®) Program, administered by the CFA® Institute, offers a graduate-level curriculum and examination program designed to expand your working knowledge and practical skills related to investment decision-making. Roles, Wealth Management, Investment decision making, Investment Analysis Exam The CFA® Program consists of a series of three examinations (Levels I, II, and III). CFA® Exam Dates CFA® Level 1 – conducted twice in a year (1st week of December & 1st week of June); CFA® Level 2 & 3 conducted once a year (1st Week of June) The Deal Each of the CFA® program’s three levels builds on the preceding one, and each concludes with a full-day six-hour examination.

Candidates must pass each examination before advancing to the next higher level, but are permitted to repeat an examination if they fail to pass. Eligibility You must have one of the following: Bachelor’s (or equivalent) degree Be in the final year of bachelor’s degree program Have four years professional work experience Have a combination of professional work and university experience that totals at least four years Program Completion Criteria Successfully pass the three exams; Have four years professional work experience in the investment decision-making process; Join CFA® Institute as a regular member Recommended Study Hours A minimum of 300 hours of preparation per CFA® exam level is recommended. What do you earn? CFA® Charter Why Pursue CFA® Exam? Given the time, money and effort, is CFA® designation really worth pursuing? Below are the main reasons why you should pursue CFA® –. CFA® is the most recognized global designation for finance professionals across the globe.

Not only employers but also clients consider CFA® Charterholders as experts in Finance. Career advancement due to the CFA® designation is no brainer. This program is extremely useful in, Portfolio Management, Investment Research and etc. A recent survey by the CFA® Institute noted that the CFA® Charterholders are primarily working as Portfolio Managers (22%), Research Analysts (14%) and Chief Executives (7%) source – Additionally, in July 2016, the CFA® Institute conduced a survey of the CFA® candidates and found the below reasons as their main motivation to take this exam –. 37% are taking this exam because of Career Advancement opportunities that open up.

Another 20% do this to attain higher level of knowledge. 10% beleive that it improves chances to obtain job. You may download the full details of the survey here – CFA® Exam Format Below table showcases important areas of the the CFA® Examination. CFA® Exam CFA® Level 1 CFA® Level 2 CFA® Level 3 Focuses on Basic Concepts in Finance Equity, Fixed Income & Accounting Portfolio Management Application Exam Format Multiple Choice with 3 choices Item Set/ Mini Case Study Item Set + Essay Questions 240 MCQ 20 Item Sets with 6 MCQ Each 10 Item Sets + 12/15 Essays Morning Session 120 MCQ 10 Item Sets 12/15 Essays Afternoon Session 120 MCQ 10 Item Sets 10 Item Sets Duration 6 hours 6 hours 6 hours Key Highlights about CFA® Exam format CFA® Level 1 exam.

This exam primarily focuses on developing basic concepts in Finance. Multiple choice questions format makes it easier for exam takers, however, one must note that on an average you have around 1.5 minutes per question. No Negative Marking CFA® Level 2 exam. The format of the exam is mini cases that are 1.5 pages length on an average. Each item set or mini cases have six questions each, answers to each question may depend on your previously answered question. No Negative Marking CFA® Level 3 exam. The key thing to note that the Morning session is an Essay Type Format where exam takers must solve the case studies and write appropriate answers.

The Afternoon session is similar to format of CFA® Level 2 where there are mini case studies with Multiple choice question answers. No Negative Marking CFA® Exam Weights / Breakdown Below is the CFA® Topic Areas in each level.

CFA® Level 1. The main focus of the CFA® level 1 exam is to create a solid foundation in Finance. Please note that, Ethics and Quantitative Analysis represent close to 50% of the examination weightage. If you score well in these 3 topics, there is a good chance of passing the CFA® Level 1 exam. However, other topics cannot be ignored, some of which are easier and you may be able to score good points in them. CFA® Level 1 examination is relatively easier for Finance Graduates and those with prior knowledge of accounting.

Non-finance graduates (engineers, science, arts etc) may find Financial Reporting & Analysis a bit challenging. However, you must not worry too much. If you spend appropriate time to this topic, you should sail through.

You can have a look at this. As an Engineer and an MBA Finance, I found Financial Reporting & Quantitative Analysis and Quantitative Analysis a bit easier to study. However, I must confess, I struggled a lot with Ethics and. CFA® Level 2.

CFA® level 2 is slightly difficult exam as compared to CFA® level 1 because of 2 reasons a) curriculum is now tougher as compared to CFA® Level 1 and b) competition is between serious candidates who have passed Level 1 examination. Four topics – Ethics, Financial Reporting & Analysis, Equity Investment and represent approx.

50%-80% of the weightage. The major change in the pattern is that there are 10 item set (each around 400-800 words) with six multiple choice questions in each session (Morning & Afternoon Session). These six questions may be dependent or independent on each other.

CFA® Level 3. The main trick in CFA® Level 3 examination is the Essay Type Question Paper. This is the first time in the CFA® examination that you are expected to write essays. The backbone of Essay Type Question Paper is Portfolio Management (representing 45% weightage).

It is common wisdom that the Essay Type Question paper creates a make or break situation. It is found that the Afternoon Exam that consists of Item Set questions is relatively easier for most of the candidates. I am a typical laptop & a gadget guy and don’t use much of pen and notebook. For this exam, I picked my pen for serious hand writing after almost 5 years and realized that my handwriting was barely legible.

I had to practice handwriting a bit to cross the minimum legibility benchmark. Even then, I recall that my hands were hurting after the Morning session, so better practice (hand) writing. CFA® Examination Fees Below is the examination fees for the CFA® June 2018 Exam (Levels I, II, III) CFA 2018 Exam Registration Fees and Deadlines Registration Deadlines New Candidate End Deadlines Enrollment Fee Total:- US$ 450 N/A Standard registration fee Total:- US$ 950 ends 14 February 2018 Late registration fee Total:- US$ 1,380 ends 14 March 2018. There is a first time enrollment fees of $450.

Also note that it is much cheaper to register for the Exam early. The exam fees of 3rd Deadline ($1,380) costs almost twicethat of the First Deadline ($630) CFA® Results & Passing Rates CFA® results are usually announced after eight weeks of the.

CFA® Level 1 and 2 exam results are available both on the CFA® Institute website and through as emails. CFA® Level 3 results are available in ten weeks post the exam day. Out of every 100 CFA® Candidates, only 15 candidates will finally crack it! Before we discuss the individual level the CFA® Exam passing rates, it will be interesting to look at the overall completion rate. Completion rate (%) is the number of candidates who have passed cumulatively CFA® level 3 exams divided by the total number of cumulative candidates who have ever attempted CFA® examination. This number provides us a broad idea of how many finally pursued and cleared all 3 levels. Since inception, a total of 15.4% CFA® Candidates passed the CFA® Level 3 exams.

Most recently (2005-2014A), the total completion rate of 14.6% was observed. This implies out of every 100 CFA® candidates, about 15 CFA® candidates will finally pass CFA® Level 3, however, the remaining 85 candidates may eventually opt out. Now let us look at the passing rates for each Level CFA® Level 1 Exam Passing rate is closer to 40%. Past 10 years saw that CFA® Level 1 examination passing rate was in the range of 34% to 39%, with an average passing rate of 39%. Average passing rate for the December examination was 37%.

Average passing rate for the June 2014 examination was higher at 40% (interesting!). Average passing rate for CFA 2015 you need Level 1- 42%, level 2- 46% and for level 3- 54%. Average passing rate for CFA 2016 you need CFA Level 1- 43%, CFA level 2- 46% and for CFA level 3- 54%.

Average passing rate for CFA 2017 you need CFA Level 1- 43%, CFA level 2- 47% and for CFA level 3- 54% CFA® Level 2 Exam Passing rate is closer to 44%. Past 10 years saw that CFA® Level 2 examination passing rate in the range of 32% to 56%, with an average passing rate of 44%. June 2014 examination passing rate was the highest at 46% in the past 8 years. To clear CFA 2015 you need Level 1- 42%, level 2- 46% and for level 3- 54%. CFA 2016 you need CFA Level 1- 43%, CFA level 2- 46% and for CFA level 3- 54%.

CFA 2017 you need CFA Level 1- 43%, CFA level 2- 47% and for CFA level 3- 54% You have a 50:50 chance of passing CFA® Level 3 Exam. Past 10 years saw that CFA® Level 3 examination passing rate in the range of 50% to 76%, with an average passing rate of 56%.

The 14-year average pass rate for all three levels of CFA (from 2003 to 2016) was 52% CFA® Curriculum vs Schweser? To answer the above question, let us first have a look at high level comparison between the two. Attribute CFA® Curriculum Books Schweser Cost $150 + shipping $649 Pages 2600+ 1000-1100 Depth of Coverage In-depth Summarized Mock Tests 1-2 6 End of Chapter Questions Yes Yes Question Bank No Yes Please note that there are many packages available at Schweser. For the above comparison I have included the price of their. Before I attempt to answer the above question, the most important question you must ask yourself is how much time you intend (consider reality) to spend for CFA® Level 1 Examination. Your preparation (CFA® curriculum notes vs Schweser notes) will totally depend on the amount of time you are willing to spend. Below are my set of tips that may prove useful (only applicable to CFA® Level 1 examination If you have 100-120 hours Exam Preparation Time? Let us face the truth, you do not have lots of time to prepare and pass this CFA® Level 1 examination. However, you have just enough time to give your one best shot.

With this I recommend the following –. Forget about the CFA® Curriculum Books.

Just going by common wisdom shared on majority of the CFA® forums, it takes around 200+ hours to go through the CFA® curriculum books (which obviously you are short of). Go through the Schweser Video Tutorials. This may take at max 20 hours and these are a good starting point to prepare yourself for the exam. Once you have looked at the videos, go through the Schweser notes in detail. Though these are summary version of CFA® books, however, I feel they are sufficient enough to ensure that you pass the exam.

Reading Schweser notes will take around 80 hours or so. The remaining time (if any), you must spend on attempting as many Mock Papers as you can and concept revision.

I had only 100-110 hours for CFA® Level 1 exam preparation and used this strategy to pass CFA® level 1 examination. If you have 200-250 hours for exam preparation? If you can spend 200-250 hours preparing for the exam, then you will be in a dilemma – Should i touch CFA® curriculum books or should I look at Schweser notes or Both?.

Frankly speaking, you will have to decide either of the two, but not both. Either you can read through the CFA® curriculum books once (yes, only once!) or you can master Schweser by learning from their video tutorials, reading notes a couple of times, practicing mock papers etc all in 200-250 hours. My suggestion here would be to yet not touch the CFA® curriculum books and spend time on Mastering Schweser concept as per the time-table given in the below graph If you have the luxury to spend 300 hours? If you have 300+ hours, then I would highly recommend a mix of CFA® Curriculum books as well as Schweser notes. The best way is to start with Schweser Video Tutorials and move to Schweser notes such that you ensure you have covered all important concepts from the point of view of exams. Thereafter, I would advise you to look at CFA® Blue Box Examples (discussed within the chapters) and then End of Chapter (EOC) Questions.

This may take another 80-100 hours. If you have less than 100 hours. A brutal advise, Go home!

Do not try your luck. You would have already spent more than $1000 on registration of the exam.

Why to waste this attempt?. Consider withdrawal option if you have already registered for CFA® Exam. Withdrawal policy offered by CFA® institute may come handy.

Enrollment Requirements To be eligible to enter the CFA® Program, there are two primary requirements –. Have US Bachelor’s (or Equivalent Degree) or be in the final year of your bachelor’s degree program at the time of registration.

or have four years of qualified, professional work experience (does not have to be investment related). or a combination of work and college experience that totals at least four years. Please note that Part-time positions do not qualify, and the four-year total must be accrued prior to enrollment. Have a Valid International Travel Passport – This is required for CFA® Exam enrollment and registration Scholarship Opportunities CFA® Institute provides two types of scholarships – Access Scholarship.

This is a need based scholarship designed for those who are not able to afford the full CFA® program fees. In addition to Financial needs, there are other factors that are also considered like academic, professional or other accomplishments of the candidate, candidate’s interest in pursuing the CFA® charter, obstacles overcome by the candidate etc. More than 2,600 Access Scholarships are awarded to CFA® Program applicants each calendar year. Awareness Scholarship.

This is given to key influencers in academics and financial community. This awareness scholarship is designed to raise awareness of CFA® Institute programs among key influencers by allowing certain strategically positioned groups and individuals to distribute and/or receive exam registrations at discounted rates. For further details, you may refer to Useful Resources for CFA® Exam Prep.

– CFA® Institute. – Schweser. – Irafanulla. – Wikipedia. – AnalystForum. What next? If you learned something new or enjoyed the post, please leave a comment below. Let me know what you think. Many thanks and take care.

Happy Learning! Useful Posts. Dear Dheeraj, Thank you so much for the detailed information. Currently a Graduate student in Biological Sciences, I come from a very different background than most candidates. My interest in CFA stems from my motivation to switch careers after PhD.

I am inclined to join Life Science VCs. I think CFA can help me to transition to an industry where one is exposed to a constant variety of innovative ideas and smart, passionate people (just like Academia). I look forward to extensive use the resources and stick to the guidelines as mentioned in the blog! Hello Dheeraj, I am in my 1st year of CA Articleship and have cleared CA IPCC Group 1.

I have a graduate degree in BCom. I would like to pursue some other course instead and was looking at the available options in the finance field.

CFA is the course which interested me a lot. Since I have a finance background already, it might be the logical option too. I was wondering if the earning a CA degree will help better my growth prospects or am I better off doing CFA alone. Financial stability and time is an important factor in consideration as well.

Florida Subject Area Examination Study Guide

I would be happy for your help. Hi dheeraj, I completed my MBA( finance ) in 2012,Worked in an solar firm for modeling solar finance for PPA and other investment opportunited based on ROI for customers.Now looking for opportunity to enter in Investment banking. Is it best to choose CFA or FRM.I knew about both,but due to time constraints,i need to switch my job immediately,as global market for solar is not positive for middle level guy.I need your assistance,which of the above two will crack quicker and more job opportunities. I personally thought CFA need more time. Hello Richard, Thanks for your note.

A) The first to jumpstart the preparation for CFA would be get the notes. I started with Ethics but felt a bit bored. Maybe you can pick the area that you like to most so that the ball starts rolling. B) Once you receive your charter, there is an annual fees for maintaining the charter (which makes you eligible for the usage of CFA designation. C) Yes, ofcourse, one can study without going through the tution providers.

This course is primarily a self study course. D) Yes, you can study on your own with the Schweser study material.

However, you just need to put in some extra efforts for the accounting section (FSA). They do not cover much of basic concepts for the freshers. I would suggest you to take read through the accounting article on wallstreetmojo. It will provide you with the basics knowledge for accounting.

All the very best, Dheeraj. Thank You Dheeraj for your insights about the CFA exam. I still have a little doubt in my mind. Well I am an engineer from an ordinary college and henceworth i did my mba in finance from an average college.I am a mediocre in academics.

I got placed from my mba college recently in a sales profile job. Now i am planning to do CFA for long term career advancement in finance field as i want to see myself as a fund manager in an Asset management company.I dont have much basics of finance.I know its kinda late but i am planning to start studying hard and give a full force attempt for CFA level 1 in june 2016.Please guide me that will my present job experience be counted to be deemed of CFA charter holder if i clear all the levels.I know its late but i aim to be a fund manager by the age of 29. I would really appreciate if you mail me with your advice. Regards Akash. Hello Akash, Better late than never! Unfortunately, sales profile experience may not count here. There are two things that you should be aware of – 1) It is important to clear all 3 levels of CFA examination.

This should be your primary target. 2) Get a relevant job. Employers (while hiring) may not very finicky on the fact that you actually didn’t receive the “charter”. Given the situation, i would recommend that you clear the exams first and get a relevant job. Your CFA charter can wait for sometime!

Thanks, Dheeraj. Hey Dheeraj, Thanks a lot for providing such a profound insight into every nook and cranny of CFA exams so succinctly yet so convincingly. Kudos for that. Now, since I am from IIT league engg. Background and look forward to pursue an MBA in the upcoming years, I was looking to at least crack the Level I before joining a b-school to get a detailed knowledge about the rudimentary financial aspects. Would this be the right choice to make ( Even at least a Level I passing certificate would make my resume more attractive and polishes besides being enlightening me about finance, won’ it?? I would surely love to have your 20 cents here.

Further, as you have mentioned above somewhere about different CFA forums, so a new participant as like me should at the least which “best” CFA forums which are detailed, insightful and extrinsically motivating. I would be very glad to have your “detailed” advice on my points.

Looking forward to hear from you.