Cracking The CFA Exam [Infographic]

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Preparing for the CFA Exam

As you may know, the next Level I CFA Exam is coming up on December 2. Candidates for Level I exams spend an average of 287 hours studying all 10 topics covered in the test, meaning now is the time to study. This is a valuable infographic, created by Ohio University’s online Master of Financial Economics program for CFA candidates, to help with professional development.

This resource highlights valuable information for candidates including the impact of these exams on their professional career, tips and strategies for passing the exam, and even highlights the resources that past candidates claim to have prepared them the most.

This infographic is free to publish and share. If you have any questions, feel free to ask in the comments below.

To check out this valuable resource for Level I, II, or III candidates, view the full infographic below:

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CFA 101

Basics of the exams

The CFA® credential is the professional standard of choice for more than 31,000 investment firms worldwide and includes a series of three exams: Levels I, II, and III.

Level I

240 MULTIPLE CHOICE QUESTIONS on ethical and professional standards.

Level II

20 SETS OF CASE STUDIES, each with 6 multiple choice questions on application of those standards and common situations.

Level III

10 ITEM SETS, 10 MULTIPART ESSAY QUESTIONS on application of standards in a portfolio management and compliance context.

PASS RATES

Level I 43%

Level II 46%

Level III 53%

Successful candidates taken average or 4 years to pass all three exams.

THE EXAMS

Offered annually at test centers on the FIRST SATURDAY IN JUNE.

The level I exam is also offered IN DECEMBER.

Must be past SEQUENTIALLY

Available in ENGLISH ONLY

EXAM REQUIREMENTS

BACHELOR’S DEGREE or be in the final year of a bachelor’s degree program

Valid international PASSPORT

4 years of professional work EXPERIENCE or a combination of professional work and University experience.

Meet the professional CONDUCT ADMISSION CRITERIA

COST

A ONE-TIME program enrollment FEE ($450) is required to register for your first Level I exam.

$450 ONE-TIME Level I

$860 STANDARD Level I

STANDARD registration FEE Level  is for $860

TOPICS COVERED

• Fixed Income
• Equity Investments
• Portfolio Management
• Derivatives
• Alternative Investments
• Ethics and Professional Standards
• Financial Reporting and Analysis
• Quantitative Methods
• Economics
• Corporate Finance

WHO TAKES THE EXAM

Most candidates take the exam because of career advancement opportunities.

• 37% career advancement development opportunities
• 18% increase competency with advanced investment analysis and portfolio management skills
• 13% to gain professional status and a global community of professionals
• 11% improve chances of obtaining a job
• 10% to challenge themselves
• 5% other
• 4% recognition from employer or potential employers
• 2% to contribute to culture of trust and credibility in the profession
• MOST CANDIDATES ARE ALREADY EMPLOYED
• 76% employed exam takers
• 15% students
• 6% unemployed and looking for work
• 2% self-employed
• 1% unemployed and not looking for work

CANDIATES ARE LIKELY TO WORK AT COMMERCIAL BANKS

• 40% other
• 15% commercial banks
• 13% investment firms
• 10% investment banks
• 10% other types of employers
• 7% consulting firms
• 5% accounting firms

IMPACT OF THE EXAMS ON PROFESSIONAL’S CAREERS

NUMBER OF PROFESSIONALS TAKING THE TEST ANNUALLY

172,682 candidates from 183 COUNTRIES took the June 2016 exams

An INCREASE of 8.5% since June 2015

ASIA PACIFIC is the largest source of candidates, with 77,510 registered for the June 2016 exam

45% of the number of REGISTRANTS

THE AMERICAS saw the registration of 57,363 candidates

33% of the TOTAL

37809 candidates registered in Europe, Middle East, and Africa (EMEA)

22% of the TOTAL

CFA® CERTIFICATION AND SALARY

The median total compensation for CFA® Charterholders is substantially higher than non chartholders

BACHELOR’S DEGREE

NON-CHARTHOLDER

$85,875

CHARTHOLDER

$154,025

MASTER’S DEGREE

NON-CHARTERHOLDER

$160,000

CHARTERHOLDER

$215,542

Need financial advisors WHO HAVE ATTAINED A CFA® DESIGNATION on average a median of 177,743 in total compensation in 2015

Lead advisors with NO DESIGNATIONS EARNED 32% LESS

On average a median of 120,000 and total compensation

MOST COMMON OCCUPATION FOR CFA® CHARTERHOLDERS

• 22% portfolio manager
• 15% research analysis
• 7% Chief level executive
• 6% consultant
• 5% risk manager
• 5% relationship manager
• 5% financial advisor
• 5% corporate financial analyst

CFA® EXAM PREPARATION

PREPARING FOR THE EXAM

CANDIDATES STUDY AN AVERAGE OF

287 hours for LEVEL I

Exam difficulty 9% reported the questions were LESS DIFFICULT than expected

315 hours for LEVEL II

Exam difficulty 63% of candidates reported the questions were AS DIFFICULT AS EXPECTED

327 hours for LEVEL III

Exam difficulty 28% reported that questions were MORE DIFFICULT than expected

TOPIC AREAS THAT WERE RANKED THE MOST DIFFICULT BY EXAM CANDIDATES

• Fixed income 73% ranked this top against difficult
• Derivatives 70% ranked this topic as difficult
• Professionals and ethical standards 66% ranked this topic is difficult
• Financial reporting and Analysis 65% ranked this topic is difficult
• Alternative Investments 60% ranked this topic as difficult

TIPS AND STATEGIES FOR PASSING THE EXAM FROM EXPERTS

• Keep up to date with exam changes
• Create a study plan and follow it
• Balance your preparation across all topics covered
• Don’t overthink questions
• Practice stress management techniques to do your best
• Although there is a limited time pay attention to detail
• Find study partners
• Become familiar with your calculator beforehand
• Take at least five full mock exams
• Complete all readings and start final review at least a month before the exam

KNOW THE TESTING FORMAT

Level eye exam and corporates two, three hour sessions

PRACTICE GOOD PENMANSHIP

Practice writing for long stretches of time

EMPLOY TIME MANAGEMENT SKILLS

There are no penalties for wrong answers only correct answers

For level I budget for completing 40 questions an hour, spending 90 seconds on each

CFA® INSTITUTE CIRRICULUM IS OVERWHEMLINGLY RECOMMENDED

98% reported improved UNDERSTANDING of important topics

97% reported the end-of-reading problems help to EXPLAIN CONCEPTS

97% report the in-text examples help EXPLAIN THE CONCEPTS TAUGHT

RESOURCES FOR PASSING THE EXAM

CFA® INSTITUTE PROVIDES

• Curriculum ebooks
• Interactive study planners
• Toppic reviews and mock exams
• Mobile apps for test prep

RESOURCES THAT MOST PREPARED CANDIDATES FOR THE EXAMS

• 89% topic-based practice tests
• 89% non-CFA® Institute Preparatory materials
• 86% CFA® program curriculum end-of-reading problems
• 84% institute mock exams
• 81%  curriculum assigned readings

LOCAL CFA® societies exist in most states;  finding a local chapter can be helpful in preparation for the exams or for finding a study group

ACCREDITED UNIVERSITIES AROUND THE WORLD

• 60 Accredited universities in the CFA® PROGRAM PARTNERS IN THE AMERICAS
• 49 in EUROPE, MIDDLE EAST & AFRICA
• 40 in ASIA PACIFIC

The CFA® exams low success rate may discourage some professionals from trying to beat the odds. However, by taking advantage of the provided CFA Institute’s resources in the well-planned study schedule a candidate will be more than prepared. For motivation, keep in mind that charterholders and up earning 55 to 74% more than none charterholders per year.

Ohio University

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