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CFA Chicago |
The CFA™ examinations are very comprehensive, difficult, time-pressured and exhausting. The key to successfully passing the examinations is preparation. Successful candidates report spending an average of 300 hours preparing for each exam, although some may need more or less time depending on their background and experience. Since 60% of candidates fail the CFA Exam, it is critical to know how to prepare, where to focus and that you have the support you need to succeed. Kaplan Schweser and the CFA Society of Chicago have put together some basic information about the exam to help you get started.
ABOUT THE EXAMS
Each of the three CFA Exams is six hours in length, equally divided into a morning and afternoon session. Each session is a self-contained unit: i.e., one cannot answer morning session questions in the afternoon.
Level 1:
Body of Knowledge™
Candidates concentrate on the tools and concepts related to investment valuation, and portfolio management, as well as an overview of how these processes fit within the guidelines of the CFA Institute Code of Ethics and Standards of Professional Conduct.
Exam
Format: multiple-choice
Questions:
- 240 equally weighted questions
- Morning Session: 120 questions;
- Afternoon Session: 120 questions
- Each question has three answer choices
- On average, 1.5 minutes should be allocated for each question
| TOPIC AREA | LEVEL 1 |
|---|
| Ethical and Professional Standards | 15% |
| Investment Tools | 50% |
| Quantitative Methods | 12 |
| Economics | 10 |
| Financial Statement Analysis | 20 |
| Corporate Finance | 8 |
| Asset Classes | 30% |
| Equity Investments | 10 |
| Fixed Income | 12 |
| Derivatives | 5 |
| Alternative Investments | 3 |
| Portfolio Management and Wealth Planning | 5% |
| TOTAL | 100% |
Level 2:
Body of Knowledge™
Candidates are expected to demonstrate a greater depth of understanding of the tools and techniques that were introduced in the Level 1 curriculum, in addition to applications in asset valuation within the context of the Code of Ethics and Standards of Professional Conduct.
Exam
Format: item set or "mini cases" - Each item set contains a vignette (with an average length of 1.5 pages)
Questions:
- 20 item sets or "mini cases
- Morning Session: 10 item sets; Afternoon Session: 10 item sets
- Each case has six multiple-choice questions
- Exam is graded for 360 points, corresponding to the number of minutes on the exam
| TOPIC AREA | LEVEL 2 |
|---|
| Ethical and Professional Standards | 10% |
| Investment Tools | 30-60% |
| Quantitative Methods | 5-10 |
| Economics | 5-10 |
| Financial Statement Analysis | 15-25 |
| Corporate Finance | 5-15 |
| Asset Classes | 35-75% |
| Equity Investments | 20-30 |
| Fixed Income | 5-15 |
| Derivatives | 5-15 |
| Alternative Investments | 5-15 |
| Portfolio Management and Wealth Planning | 5-15% |
| TOTAL | 100% |
Level 3:
Body of Knowledge™
Candidates are required to demonstrate a higher level of understanding of the materials tested at Levels 1 and 2, as well as display effective knowledge of the entire portfolio management process.
Exam
Format: essay, item sets, and multiple-choice
Questions:
- Morning Session: 12-15 essay questions;
- Afternoon Session: 10 item sets and 6 multiple-choice questions
- The exam is graded for 360 points, corresponding to the number of minutes on the exam
| TOPIC AREA | LEVEL 3 |
|---|
| Ethical and Professional Standards | 10% |
| Investment Tools | 0% |
| Quantitative Methods | 0 |
| Economics | 0 |
| Financial Statement Analysis | 0 |
| Corporate Finance | 0 |
| Asset Classes | 35-45% |
| Equity Investments | 5-15 |
| Fixed Income | 10-20 |
| Derivatives | 5-15 |
| Alternative Investments | 5-15 |
| Portfolio Management and Wealth Planning | 45-55% |
| TOTAL | 100% |
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