Tips for Studying for the CFA® Examinations
The CFA Program is a self-study, distance learning-based program that takes a generalist approach to investment analysis and portfolio management and emphasises the highest ethical and professional standards.
The goal of the Candidate Body of Knowledge (CBOK) and the assigned CFA curriculum readings is to educate candidates on topics of importance to the investment profession. The CFA Institute strongly believes that you will gain a better understanding of a topic by reading the curriculum materials than by reading a summary of the reading. Reading only a summary risks fragmenting the topic and missing key points.
The CFA examination measures your degree of understanding of the assigned curriculum. This document provides tips for studying for the CFA exams (in general, as well as for each of the three examination levels) and tips that might improve your performance on exam day. This document is organised into several sections:
1. General Tips for Studying for the CFA® Examinations
2. Tips for Taking the Level I Multiple-Choice Examinations
3. Tips for Taking the Levels II and III Item Set Examinations
4. Tips for Taking the Level III Essay Examinations
5. Myths about the CFA Examinations
6. A Final Word
If you are taking the CFA Level I examination, you might skip sections 3 and 4. If you are taking the CFA Level II examination, you might skip section 4.
The goal of the Candidate Body of Knowledge (CBOK) and the assigned CFA curriculum readings is to educate candidates on topics of importance to the investment profession. The CFA Institute strongly believes that you will gain a better understanding of a topic by reading the curriculum materials than by reading a summary of the reading. Reading only a summary risks fragmenting the topic and missing key points.
The CFA examination measures your degree of understanding of the assigned curriculum. This document provides tips for studying for the CFA exams (in general, as well as for each of the three examination levels) and tips that might improve your performance on exam day. This document is organised into several sections:
1. General Tips for Studying for the CFA® Examinations
2. Tips for Taking the Level I Multiple-Choice Examinations
3. Tips for Taking the Levels II and III Item Set Examinations
4. Tips for Taking the Level III Essay Examinations
5. Myths about the CFA Examinations
6. A Final Word
If you are taking the CFA Level I examination, you might skip sections 3 and 4. If you are taking the CFA Level II examination, you might skip section 4.
General Tips for Studying for the CFA® Examinations
The tips in this section are general advice for all three levels of the CFA examination. More specific tips are given below for taking the Level I multiple-choice examinations, the CFA Level II and III item set examinations, and the CFA Level III essay examinations.
There is no secret to success on the CFA examinations:
There is no secret to success on the CFA examinations:
CFA Exam Preparation
- Minimum of 250 hours per level
- Read and study the material
- Focus on LOS – a CFA Institute contract with candidate
- Review
CFA Exam Tips Confidence
- Mindset – 70% is a fine score
- 100% is not the goal – passing is the goal
- Organize your study well in advance of the examination. Divide the material into manageable units (for example, by Study Session) and then allocate a certain number of hours per day or week to studying. Then stick with it! A common study plan is to complete one study session per week.
- Read the 2010 CFA Level I (or II or III) Study Guide, which has a wealth of information and will help you organize your study plans. For Level I candidates, this information also appears in the front of Volume I of the custom curriculum.
- Save the candidate web site and refer to it often: www.cfainstitute.org/canservices. This site will link you to several frequently used candidate services.
- Purchase your curriculum early.
- If you have not yet purchased the calculator you will use for the examination (www.cfainstitute.org/cfaprogram/calculatorpolicy.html), it is strongly encouraged to do so. Learn your calculator completely. Valuable time will be wasted if you have to refer to the keystroke instructions during the examination.
- Experts agree that more learning takes place when study is spread out over several sessions. In other words, people generally learn more from six two-hour sessions than from one 12- hour session. Structure your study program so that your time is used effectively.
- When developing your schedule, make sure to leave time for relaxation so that you don’t get overwhelmed.
- Before approaching an assigned reading, review the reading-specific Learning Outcome Statements (LOS). These learning outcomes indicate what you should be able to accomplish after studying that reading. When you have finished the reading, close the book and
- determine whether you can accomplish the action specified by the LOS.
- LOS are written to help focus your study; they are not intended to signal that candidates should only read the specific paragraphs supporting that LOS. Think of some good books you have read. Would you have attained the same level of understanding from a summary? Although summaries can be useful in reviews, we urge you not to consider summaries as substitutes for the source materials.
- Create your own notes, flashcards, and practice questions. The time spent writing concepts on paper or into your computer will help you remember them.
- Don’t try to guess what topics or areas will be tested—you may guess wrong. If something is covered in a LOS, it may very well be on the examination.
- Pay attention to the specific command words. In the LOS, command words indicate the depth of understanding required. Command words are defined in the Study Guides and in the Level I custom curriculum.
- In the ethics section for all three levels of the CFA examination, candidates are not required to know the number associated with a particular Standard.
- Each exam question is linked to one or more LOS. The language, terminology, and symbols used in the questions are consistent with the LOS and the candidate readings.
- The examination is faithful to the CFA Institute assigned curriculum. Questions are carefully reviewed to guarantee adherence to the curriculum, and further reviewed to make sure the examinations are free from biases related to language, business practices, and cultural issues.
- If possible, spend the final three weeks to a month before the examination reviewing the assigned readings and your notes and answering sample questions (the online sample examinations will be helpful). This gives you time to go back and review your weaker areas.
- CFA Institute has developed online sample examinations for the multiple-choice exams at CFA Level I and the item set exams at CFA Level II and CFA Level III.
- The sample examinations were developed in response to candidate demand, and their content, format, and style are reflective of the upcoming live examinations. They are timed, and provide immediate feedback on the correct answer and its explanation, page references in the assigned curriculum, and the LOS reference. The online sample examinations are available at: www.cfainstitute.org/cfaprogram/onlinesampleexams.html
- CFA Institute publishes Level III structured response (essay) questions and answers from the past three examinations as Book 5 of the Level III curriculum readings.
- There are two popular strategies for taking the examination. One strategy is to take the examination questions in order, beginning with question 1 and going straight through to the end. The second strategy is to begin the examination with the topic area where you feel most confident in your knowledge. This can help you build confidence, which is an important factor on any examination. In addition, you can generally answer the questions in your area of expertise more quickly, giving you more time in the areas where you have less proficiency.
- You are strongly advised to record your answers on the answer sheet as you take the examination rather than wait until the end of the examination session. Some candidates mark their answers in the question book and wait until the end of the examination to fill out the computer scan sheet. If time is called before you have transferred your answers, you will not be given additional time.
- Your total score on the examination is the number of questions answered correctly. No deduction is taken for incorrect responses and you will not be penalized for guessing. You should attempt to answer all questions.
- If you finish early, go back and review your work. Many candidates skip questions with the intention of answering them later, and then forget that questions were left unanswered.
- Don’t discuss specifics of the morning session of the examination with other candidates over the lunch break. Too often, candidates’ confidence is shattered after discussing the examination with other candidates, which can lead to poor performance on the afternoon session of the examination.
- Remain calm and confident. When you have prepared well, you should be able to use logic to deduce many of the answers. Don’t be upset if there are several questions you cannot immediately answer.
- Think carefully about your own background and strengths and weaknesses. Then consider devoting special attention to the areas of the curriculum where you are not up-to-date (to build up your general knowledge) and taking the online sample examinations (for good test-taking practice).
- Even if you have not had a chance to fully prepare, consider taking the examination anyway. (1) You will be more “testwise,” knowing more about the skills and abilities it tests for the next year’s exam. (2) Taking the examination may give you more motivation and background as you study for next year’s exam.
- Visit the test center a week before the examination to get an idea of traffic, parking, public transportation (if available), and how long it will take to get to the center onthe day of the examination.
- Get a good night’s sleep so that you arrive at the test center well rested. Don’t attempt to do too much last minute studying on the night before. Success or failure on the examination is determined by what you have done over the past few months—not what you do on the night before the examination.
- Arrive at the test center early so that you don’t add to your stress level by wondering if you will make it to the test center on time.
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