CFA - FAQs

A: The CFA exam consists of three levels: Level I, Level II, and Level III.

A: The CFA exam syllabus covers a wide range of topics including ethics and professional standards, quantitative methods, economics, financial statement analysis, corporate issuers, equity investments, fixed income, derivatives, alternative investments, portfolio management, and wealth planning.

A: The CFA exams consist of multiple-choice questions, item sets (mini-case studies), and constructed-response (essay) questions. Level I is multiple-choice questions, Level II is item sets and level III is a combination of item sets and constructed-response questions.

A: The CFA exams are graded on a pass/fail basis. The passing score is determined by the CFA Institute and may vary from exam to exam.

A: The passing score for the CFA exams is not disclosed by the CFA Institute. Candidates receive a “pass” or “fail” result without numerical scores.

A: The registration fees for each level of the CFA exam vary depending on the registration period.

A: You can register for the CFA exams through the CFA Institute website.

A: No, you cannot take multiple levels of the CFA exam on the same day. Each level must be taken separately.

A: Time management is crucial. Prioritize questions based on your strengths, allocate a set amount of time per question, and don't get stuck on challenging ones.

A: Focus on understanding key concepts, utilize official CFA Institute materials, and practice with mock exams. Consistent, disciplined study over a few months is key.

A. Active learning is essential. Practice problems, teach concepts to others, and use mnemonic devices. Regular review and repetition also aid in retention.

A. Set clear goals, break down the study process into manageable tasks, and reward yourself after reaching milestones. Joining study groups or forums can also provide motivation.

A: Yes, CFA Institute requires a minimum of three years of relevant work experience. This experience can be accrued before, during, or after the CFA Program.

A: The CFA Institute does not disclose specific passing scores. Candidates receive a ‘pass’ or ‘did not pass’ result. It’s crucial to focus on mastering the material rather than aiming for a specific score.

A: Yes, many candidates use third-party materials as supplements. However, it’s recommended to primarily rely on official CFA Institute materials to ensure alignment with exam content.

A: Understanding the CFA Institute’s Code of Ethics and Standards of Professional Conduct is vital. Practice with ethics questions and focus on the reasoning behind the standards.

A: Yes, you can reschedule your exam date, but there may be fees associated. It’s advisable to check the CFA Institute’s policies and deadlines for rescheduling.

A: Focus on understanding key concepts, utilize official CFA Institute materials, and practice with mock exams. Consistent, disciplined study over a few months is key.

A: Active learning is essential. Practice problems, teach concepts to others, and use mnemonic devices. Regular review and repetition also aid in retention.

A: The Institute does not offer exemptions to anyone, including professors in Finance.

A: This varies across individuals depending on background, however on the average students reportedly use 300 hours per level.

A: Level I is written four times per year (February, May, August and November). Level II is typically written 3 times per year (May, August and November) and Level III is written twice per year (February and August)

A: For individuals that do not fail any level, level I can be written in February, Level II in August and Level III in the following February.

A: Yes, you can use specified financial calculators during the FRM exams. The two calculators allowed are Texas Instruments BA II Plus (including BA II Plus Professional) and Hewlett Packard 12C.

A: A Practical Skills Module (PSM) employs instructional videos, multiple-choice questions, guided practice, and case studies to enhance practical skills. Completing at least one PSM at each level is mandatory to receive your exam result. The initiation of your PSM topic can occur at any time post-registration, with each PSM requiring approximately 10-15 hours for completion.

A: Yes, to obtain your exam result, it is imperative to complete one PSM at each level, alongside taking the exam.

A: The timing of PSM completion is flexible. Whether done right after registration, during your studies, or after the exam, it must be finalized by the results release date.

A: Indeed, completing the PSM is a prerequisite to receive your exam result. However, you only need to complete one PSM at each level, even if you need to retake the exam.

A: Certainly, you have the flexibility to change your chosen PSM. The only requirement is the completion of at least one PSM to receive your exam result.

A: If your PSM is not completed by the results release date, you won’t receive your exam result on that day.