Just took Level II on Saturday and am still recovering. Made the mistake a few minutes ago of thinking I should look on web message boards to see what people were saying about it. Found out one of my answers was wrong. Shit. On the other hand, found out a bunch were right.
Nothing like a test that only passed 32% last year to bring clarity to your day.
Not me, but my daughter in Toronto took it Saturday. I have full admiration for you all that are prepared to put so much into this - just an incredible amount of work. Kudos - and best of luck.
Cheers
Barry
I always hated the first saturday in June…I did mine a number of years ago, and it still haunts me. Hopefully everything went well, and you have one more level next year! Good luck!
Thanks for the encouragement.
I have to admit that this is my second go-round with Level II. I took Level I a couple of years ago and passed it without studying much - I have my MBA and was an investment banker. Unfortunately, that made me rather overconfident for Level II, which turned out to be a completely different enchilada. So this year I put in a ton of time, and still didn’t feel great before the test - I’m sure from your daughter’s experience you know that it just feels like its too much material to possibly know all at once. It’s a little weird walking up to a testing center and seeing dozens of people sprawled out on the sidewalk doing last-second studying.
Anyway, I feel reasonably okay about it. I was lucky enough to have enough of the formulas in my head that even when I was completely thrown by a question I was able to doing some plugging and come up with an answer that was an offered choice - given that the answers were often fairly complex numbers that required long calculations, I took that as a sign that getting an answer randomly was a low probability event. But who knows.
Yeah, I’ll be glad when I’m done with it. It sort of of bothers me that even theoretically I find a lot of it to be crap.
I think all the stuff with fixed income and swaps and options is fine, if arcane, but the valuation methodologies I think are not often used in real life. I’ve never heard of anyone using an H-model or residual income model to actually value something.
And market efficiency? I’m pretty sure I don’t buy that either.
But I guess it’s a good certification to have, if grueling to get.
I proctored that exam on Saturday. It’s a long boring day for the proctors, but I can only imagine what it’s like for the students. So much studying… so much pressure… and proctors breathing down your neck, waiting for you to cheat so they can have some excitement for the day.
I have a lot of respect for everyone that embarks on that certification.
Last year’s 32% pass rate was an anomaly. Normally it’s up in the 50% range 
I don’t think that helped, but I’m sure you did just fine, guys.
The pass rate has been dropping for awhile.
I don’t know if you read last year’s letter to candidates, but it was hilarious. The pass rate was so low that CFAI decided it needed to explain it and it basically said that no, the test isn’t getting harder, its that candidates are getting stupider. Or more precisely, that fewer candidates are buying books and putting in the requisite hours, according to their surveys. It was a pretty funny lettter, actually.
I don’t know if the candidates buy that explanation, but I guess it makes sense. The test is attracting a larger candidate pool than 10 years ago, and I guess their argument is that the pool transformation has not been in proportion to the past. Either that or they just like making people take the test repeatedly.
Actually, my favorite part was seeing how much of a super nerdville it was - I imagine you would only see this many adult nerds at a Trekkie convention. The whole bit with the calculator is hilarious - people bringing 2 and 3 calculators. I mean, when was the last time anybody actually had a calculator cease to work spontaneously for him? Especially when you know that guy has replaced the batteries? I especially found it strange that somebody would bring 2 or 3 identical calculators, and then use wooden pencils. Spring for the mechanical, buddy.
Take the CPA exam and then we can talk about low pass rates, particularly passing all four parts on the first try.
After taking that test I have little interest in subjecting myself to that same torture again.
I think the CFA is actually harder. I’m a CPA, and have never sat for the CFA, but the CFA is a multi-level test over a period of years and requires as much or more studying than the CPA. I’d guess well over 50% of those who sit for CFA are already CPAs but I’m just pulling that out of the air. Anyone know how to compare the 2 tests?
The entire CFA process is much more strenuous. No doubt.
just curious: what is the CFA designation? Is it the Canadian version of CPA?
It stands for Chartered Financial Analyst. It’s a worldwide designation which is generally held by securities analysts, as it focuses on accounting, corporate finance, valuation, and portfolio management.
It takes 3 years to get and is pretty much a pain in the ass. I have an MBA, and I would estimate that the Level II is comparable to 2-3 semesters of coursework, easily.
I know a lot of people who are taking it (at least level I) and failing because they’re just trying to get a designation for the salary increases.
That said, one of our traders just took 4 weeks off to study - and I suspect he passed.
Level I is pretty straightforward, I found. I took it a couple of years ago and didn’t study that much. Unfortunately, that was bad because it conditioned me to think the test would be easy throughout, and Level II hit me in the face like a truck, so this year was my second attempt at Level II. I’m cautiously optimistic this time, but the painful thing about the test is that the amount of potential material on the test is enormous, and it is virtually impossible to know everything. It’s a pretty painful process, and you just sort of have to concede imperfection. Any test where they have the nerve to test heteroskedasticity in multiple regressions on one end and the pricing of swaptions on the other is not going to be a walk in the park.
yeah, i feel for you guys. i got bored and started reading some of the questions. i couldn’t even get half way through the information provided before i was totally lost. thanks, but i’ll stick to deciphering provincial statutes…
Glad you asked, I assumed it was a Cluster Fuck Administrator!
I know, I’m resurrecting a really old thread here. Is there anybody who has taken the CFA Level 1 exam without having much professional finance experience? I was just curious. I’m graduating with an MBA (emphasis in Finance) in December, and I’m also planning on taking CFA Level 1 exam in December as well. I currently work as a web developer, but I’m looking to start working as a corporate financial analyst.
Glad you asked, I assumed it was a Cluster Fuck Administrator!
That is what I was thinking too till I read the same post you did. CFA? WTF? WTHDIK? LOLROTFL!
That’s what it really means! Personally, I find that the CFA designation doesn’t carry as much weight as it once did in the financial sector. It just seems to be a way of getting some extra bucks and a promotion. An MBA seems to be the same way…I did Level 1 of my CFA and then went and did an MBA…others I know have done it the other way round and in the end, I don;t find them to be any better at what they do then people that don;t have the designations…just makes them feel good to have the letters after their name on reports.
I have numerous NASD licenses, but would NEVER want to take the CFA - GOOD luck!!