Credit Risk in Corporate Bonds | CFA Level 1 - AnalystPrep (2024)

FAQs

How to clear CFA level 1 in first attempt? ›

The CFA Level I exam pass rates have generally been between 35% and 44%. These rates are the best for assessing its difficulty: many candidates quit after failing to clear this initial hurdle. CFA Level II passing rates have typically fallen within the range of 44% to 52%, depending on the exam session.

Exam Pass Rates by Level

From 2012 to 2022, pass rates for the level 1 exam have averaged 41%. Since 2020, the average has been hovering around 37%.

Some candidates consider themselves to be fairly ethical people and so think that the answers on the exam will be intuitive. They neglect the topic and end up failing on the exam. Other candidates read the material, to the point of memorizing the Code and Standards, but neglect to do practice problems.

For the majority of candidates, we recommend a 6-month study plan. This would break down to about 12 hours per week or two hours per day for 6 days per week. Skipping one day each week would allow you to relax and prepare for the next week's activities.

Candidates are permitted to take the exam a maximum of two times per calendar year (when applicable), but not in consecutive windows or windows that are six months or less apart. Candidates will have a total of six maximum attempts per exam level.

Passing Scores

Candidates must get a minimum passing score (MPS) of 70% on the multiple-choice questions on the CFA Level I exam, a minimum score of 65% to 70% on the multiple-choice questions on the CFA Level II exam, and a minimum passing score (MPS) of 60% on the multiple-choice questions on the CFA Level III exam.

If you need to correctly answer 135 questions to pass the exam, you don't have to know the answer to 135 questions. That should give you confidence. It's OK to guess on some questions. A passing score is within your grasp!

With a pass rate of less than 11% for all three levels, the CFA passage rate is lower than most state bar exams. Virtually everyone who has taken all three exam levels will tell you it is one of the most time intensive and difficult exams they have ever sat for.

Is the CFA harder than the CPA? ›

CFA vs CPA Exam difficulty

Both are challenging and require gaining skills and knowledge in complex topics. However, the CPA Exam generally requires less studying - around 80 to 120 hours per section compared to 300 hours per section of the CFA Exam, and the CPA Exam also has a higher pass rate.

Generally, our research shows that candidates' CFA Level 1 hardest topics are Financial Statement Analysis, Fixed Income, Quantitative Methods, Derivatives and Economics. Meanwhile, CFA Level 2 most difficult topics are typically Financial Statement Analysis, Portfolio Management, Ethics and Derivatives.

The CFA exam pass rate is low because it is a challenging exam with three levels. The percentage of people who pass all the levels is small, especially when you consider that the passing rate for Level 1 is less than half. Let's look at the data, and discuss what you can do to increase your chances of passing.

Level I CFA candidates are provided with a "pass" or "did not pass" message via email on the result date.

It would be safe to generalize that most CFA charterholders would call Level 2 the hardest of the CFA Exams. However, with patience, dedication, and practice, candidates can conquer the Level 2 Exam.

Frequently Asked Questions

CFA Level 1 Fixed Income is considered one of the more difficult topics on the exam, and for most candidates, it is also one of the least familiar. Fixed income securities are typically more abstract than equity investments.

Here are some of the topic areas that require the most math: Quantitative Methods: This topic area covers a range of mathematical concepts such as time value of money, probability, statistical concepts and methods, and hypothesis testing.

According to consensus, level 2 might be the most difficult level out of all three (breadth and depth both increase). However, I've covered QM, ECO and majority of FSA so far and don't find it that impressive? Do you guys feel the same about those topics?