Is it unrealistic to request the Institute to provide a response as to why Level III results have dropped off so drastically the past 2 years? CFAI provided a response to falling Level I rates a few years ago that indicated it was due to the increased popularity of the exam and that candidates did not prepare appropriately. This is not a justifiable response for Level III. CFAI claims that the MPS is set each year to pass a group of candidates who posess a similar minimum level of understanding of the material, regardless of the exam year. If this is true, it is reasonable to assume (with a large sample size) that by level III the candidates as a whole should have a similar knowledge base in the material from year to year. Yes, there will be variation. However, swings in pass rates from mid-70s to low-50s over 3 years is very large (actually it was 82% in 2001). I don’t think it is unreasonable to request the CFAI to provide a reason for the high variation in pass rates over the past 8 years for Level III. Here’s the link to historical results: http://www.cfainstitute.org/cfaprog/pdf/candidate_results.pdf I think we should all send an email requesting the Institute to provide a response as to why Level III pass rates have fallen so much, when their own grading process is designed to have a similar minimum level of qualified individuals sit for Level III each year. Yes, there will occasionally be years with a higher number of very smart individuals that push up the pass rate, making other years look low. However, with a large sample size this should not have a large impact and the pass % should be more consistent by Level III vs. other levels - if they are truely maintaining consistency with the minimum quality of individuals they are passing. There should not be 30% swings in pass percentages at Level III. My personal feeling is that the morning exam was especially lengthy for 2008 and caused a time crunch for many. I never came close to running out of time when taking the 2007 & 2006 exam essay questions that were posted on the website. There were questions where I received big fat zeros due to lack of time on the 2008 exam. The morning results should have been adjusted for this. This was obviously not as big of a factor for the essay section in recent years, so 2008 test takers were penalized. I just missed passing and I feel it was due to a lack of time rather than a lack of knowledge - especially when the CFAI-provided prep material from past exams was misleading due to the fact that the questions were not nearly as time consuming. I think we have a right to know the CFAI’s rationale as to why there is such a large variation in results for Level III from year to year, and as to why it has dropped so drastically in the past 2 years.
sure you can always go ahead and email them…
Like reading myself thinking
by the way you may want to have a newer version of this: http://www.cfainstitute.org/aboutus/press/pdf/1963-2008A_candidate_examination_results.pdf
overall the passing rates have been falling for all levels, is it possibe that a majority of current candidates are just not as prepared? 2004 was the last year that the Level II had a written section - pass rate that year was 32%, all multiple choice in '05 and the pass rate shot up to 56%. My opinion is that the Level III exam has become more difficult in the past couple years - it seems that prior year exams focused more on knowing the basics of IPS (RRTTLU), some calculations and the ability to recall lists. Whereas now, the exam is asking you to apply the info you have learned (i.e. reverse cash & carry) and be able to explain it succinctly. Therefore I think the response would be that the pass rates are lower because the test is asking questions differently than in the past and current candidates are not as prepared.
I can email CFAI for a response, however, I don’t think you will like their response. IMHO, CFAI doen’s have to provide a consistant passing grade for all levels.
The 2004 L2 pass rate was 32%. I took that test. Since then I haven’t seen the L2 rate under 40%. L1 pass rates have been pretty consistent at 35-40%. So, L1 and L2 are not lower. I believe CFAI sets the curve based upon the top % of people passing the test. Based upon the L1 and L2 results over the last five years, I just don’t see CFAI intentionally lowering the pass rate.
Why not just study harder and position yourself within top 50%?
jjb Wrote: ------------------------------------------------------- > overall the passing rates have been falling for > all levels, is it possibe that a majority of > current candidates are just not as prepared? 2004 > was the last year that the Level II had a written > section - pass rate that year was 32%, all > multiple choice in '05 and the pass rate shot up > to 56%. that’s false. 2004 was the first year that L2 became all MC and the pass rate ended up being the lowest in history for L2.
Level II did not become all multiple choice until 2005.
I passed all three levels so I hope that the pass rates fall off even more. 10% for Level 1. 25% for Level 2 and 35% for Level 3. We have a standard of quality to maintain and can’t just let in any old schmuck from the street,
Legend that is a completely ridiculous comment and insulting to the other posters on this board.
Coming from the SOA, I find it quite odd to find people unhappy with a 53% pass rate. I took exams with 10 year practitioners and we would be lucky to have 4 out of 10 pass. I am glad they no longer pass 83% or whatever it was 3 years ago – heck, if I had known they passed that many I may have not even signed up in the first place. I would think 30% for I and 40% for II and III sounds about right.
Thought that might get somebody excited!! But honestly it’s common view held amongst those who just passed. Understandable of course.
Point proven by Buckhead. Thank you sir/madam
If many more people are taking the exams of course more people will fail. It is unrealistic to think that 80% of people should be passing L3. I think passing rates in the 40-50% range and justifiable and fair. If anyone can have a charter, it will diminish its value. It is in the interest of CFA charterholders to keep the exam tough.
my take on what should be the pass rate Level I ~ 25-30% Level II ~ 20% Level III ~ 10% sounds good ?
sure, thats one way to shut down CFA institute
rohufish Wrote: ------------------------------------------------------- > sure, thats one way to shut down CFA institute ====================================== bet it will increase the number of candidates appearing for the test, the more harder the tests , a larger number of motivated/ serious people will take this test will weed out non-serious candidates from the group
10% for level 3? So only a handful of the select group get to pass? Yeah, great idea. Will never happen.