Joey - your comments are thoughtful - it is implicit that CFAI thinks that their testmakers are spending too much marginal time coming up with the 4th option - which times 200 q’s in L1 , 120 in L2 and 60 in L3 means that that 580 option choices per yr (with L1 given twice) are not effective testing (or tricking) candidates into wrong answers. Depending on how many person-hrs per option choice are needed to develop tests x cost per person hr, one can see that the savings would add up over time (minus some new time for making the questions and answers adjust to the new format). Sure, 3 answers do make it easier to guess correctly - so they will compensate on more questions by making the item set data more complex, the more questions requiring multistep calculations, and the answer options more plausible and closer to one another, and raising the MPS a tad to shut out the ‘lucky guesser’ at the margin. Assume the qualitative questions - ethics, porter, lots of PM - will get more nuanced and detailed.
JDV hit on the thing that pisses me off most. The change risks creating a perception out there that the CFA exams are now easier, especially amongst finance colleagues who are not charterholders but MBAs, etc. A couple of guys at my work who are planning to write level 1 next year reacted to the change as follows: “Oh right on, I’m glad I waited to start since it will be easier next year.” Obviously, a good argument can be made that it will not be easier. However, if it is perceived as easier, that perception will only serve to diminish the great credibility of the designation. The difficulty in attaining the CFA is a significant part of what makes it such a prestigious designation. It astounds me that the CFAI would do anything to diminish this (real or perceived). If it’s a cost issue, increasing fees would have been a better solution, as employers pay the majority of candidates’ fees anyways. Hopefully the pass rate stays the same and rewards the well prepared, as it will mitigate the above risk.
CFAI benefits financially from this misperception - in addition to cost savings, there will certainly be more entrants who now think the tests are easier and will pay hundreds of dollars to try, but then fail because they didn’t do all the readings, study hard, take a review prep, and all the other machinations we all just went through. This first wave of new L1 testtakers will discover that it wasn’t as easy as initially thought, and will drop off at L2. The failure rate will likely rise, and the reputation for difficulty will be retained, if not enhanced. Bottomline: CFAI collects all the fees from the L1 fails and shows off that pass rates actually fell. That’s another way to look at the reputational consequences of this change. (Of course, some discounting of difficulty will occur from those in the know and who will someday review these blogs!)
glebzhgun Wrote: ------------------------------------------------------- > Now that’s truly amazing. chrismaths gave a > calculation that should have ended the dispute. > Assuming that everyone here have read Quant > section at least once (hopefully more than that), > I don’t understand how most don’t see it. The discussion didn’t continue on the basis that we believe that the exam will be easier. Rather, the discussion continued on the basis that we expect the general public (employers, prospective candidates …) will perceive the axeam as being easier.
need urgent help i registered foe CFA exam…wanted to register for cfa dec08 l1v1l 1. but by mistake registered for cfa june 09 level 1. pls guide me how to change the exam timings.
here also you posted in wrong spot…shoudl have started new thread to attract the right ppl. My advice. Write your request to CFA immediately! or if possible call them…
Wow