Hi This question is to those who cleared L1 and/or L2. What’s the passing rate, exams difficulty compared to CFA, and benefits of having CAIA? Thanks,
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70% is the passing rate for L1 and they say you need 70% to clear it. I cleared the L1 in september. Difficulty - I am not sure. Let me say this. If you are a graduate, and you just try to attempt CFA L1 and CAIA L1 without any preparation whatsoever, with 1/3rd negative marks for wrong answers, (just to neautralize random guessing, both exams dont deduct for wrong answers) you might get 20% in CFA but in CAIA you would struggle to get 10%. But if you devote 100-150 hours to CAIA L1, the probability of passing this exam is higher than CFA L1. Because i) the curriculum is limited ii) they provide formula sheet iii) the probability of your wrong answer as one of the option is higher in CFA L1 But with $1,400 on the stake my bets are that you would devote that much time to CAIA L1, for me that was the sole motivation to study after I enrolled for the exam.
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They provide a formula sheet sameer?What did you mean by that? Just started studying…
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yes in CAIA L1 they provide a formula sheet, which is very limited but contains the relevant formulaes. I didnt know that before giving the exam and crammed the formulaes. In hindsight, I dont regret it. It is better to be safe than sorry
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This is news to me!!!I sure would love to avoid that pain…doing CFA L2 as well in June. CAIA looks like it’s gonna be a whopper for sure…
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I must have glanced at the formula sheet for the CAIA L1 test two times.
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Is that a good thing or a bad thing sublime?As in you didn’t need it because the formulas were that easy? How would you rank it with L1 in terms of difficulty?
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Hi manavecplan, My glancing at the formula sheet so infrequently was more a function of the types of questions - which were very conceptual in nature - then it was my fully remembering equations. I don’t recall using my calculator too much during the exam, and even when I did, it involved using very simple financial functions on the calculator, simple bond calculations were probably the most complicated thing by far. If I used my calculator very infrequently for the CAIA L1 exam, I fully anticipate using it even less for CAIA L2 exam. It feels that things here are even more conceptual, qualitative, list-like. That said, doesn’t necessarily imply it being easier now, I think it’s definitely much more complex compared to the first level. As for difficulty of CAIA L1, I would say that it was a little easier than CFA L1. However, if you don’t have any finance background (on par with CFA L1), CAIA L1 is no joke.
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Thanks sublimity, there is some good information here for sure. I’d be curious to know how level 2 of CFIA compares in terms of conceptualization. I know you say that the test is hard, but if you don’t have to memorize formulas, then we are talking about straight memorization of concepts and definitions? Just curious as to how the exam can be difficult if it is (a) more concentrated, less material and (b) highly conceptual/qualitative.
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CAIA L2 has a lot more detail for sure and it builds on the previous level, though not too heavily. I just finished it today and looked at the formula sheet exactly 1 time just to see what was on it - and never needed to use it nor any formulas I had in my brain too much.
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Good Luck Sub! I’m rooting for ya!
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Thanks sublimity! So you would say 90% conceptual 10%, formulas? Just trying to get a grasp of how I should gear my studying.
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I would say that 90/10 conceptual/formulas is right theoretically. However, when taking the exams - it is probably more like 75/25 concepts/calculations.
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a weighting of 25 sounds a lot more significant than the CFA materials, which is what I was hoping for. Specialization has got to require some more in-depth analysis of the material. Thanks sublimity, I think i’ll spend a good portion of my time understanding what the formulas are trying to achieve, instead of plug-n-chug.
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