Different levels of CFA

Becoming a CFA (Chartered Financial Analyst), could be the great achievement for people who are in the field of finance and investment. One needs to cover all the three levels of CFA to become the charter holder.

As far as the difficulty level is concerned each level becomes difficult gradually. Less than half of people who take CFA level 1 are able to pass it. Less than half of those who pass level 1 are able to advance to CFA level 2. Two thirds of those who clear the CFA level 2 are able to become the CFA charter holder.

CFA Level 1 – The level 1 of CFA focuses on introduction to asses valuation, financial reporting and analysis and portfolio management techniques.
It consist of 240 multiple choice questions. The test is divided into two three hour sessions, with a two hour lunch break in between. For the test, only two calculators are allowed one is Hewlett Packard 12C and another is Texas Instruments BA II Plus. There is no set minimum passing score. As
a result of your exam you only will get to know grades of pass or fail.

CFA Level 2 – This is the second hurdle to cross to become CFA. The level 2 focuses on asset valuation, and includes applications of the tools and inputs (including economics, financial reporting and analysis, and quantitative methods) in asset valuation.
Unlike Level 1, the level 2 exam is conducted once in a year that is in June. Like Level 1 this one also divided into 2 three hours session, with a two hour lunch break in between. The format of multiple questions are little different in level 2. They will come in an item set format. It means you will be given a case study to read, between 1-3 pages and then you will be asked to answer several question based on that reading. There would be total of 20 item sets and each item set will have 6 multiple choice questions.

Like Level 1 only two calculators are allowed one is Hewlett Packard 12C and another is Texas Instruments BA II Plus.

CFA Level 3 – The final stepping stone to become a CFA charter holder. This level focuses on portfolio management, and includes strategies for applying the tools, inputs, and asset valuation models in managing equity, fixed income, and derivative investments for individuals and institutions.

Like CFA level 2 this exam also held once in a year and has 2 three hours session, with a two hour lunch break in between. In first session there are 12-15 questions of essay types and with some sub questions. In the next session there would be 10 case studies of 1-3 pages and you need to answer 6 multiple questions based on each case study.

I hope you will clear all the three levels of CFA with your hard work and dedication.

Kindly write me in case you require any other info/suggestion.

To know about the CFA, read my earlier blogs
Requirements to become CFA
How to prepare CFA level -1

Keep your feedback coming 🙂

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4 Responses to Different levels of CFA

  1. Pingback: Required work experience to become a CFA charterholder | career guru

  2. Pingback: What is the pass percentage for CFA exams | career guru

  3. Pingback: CFA level 1 – What is the minimum passing score(MPS) | career guru

  4. Pingback: Calculators allowed in CFA exams | career guru

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