CFA Level 1 Passing Rates

CFA level 1 seems to be a tough nut to crack. Passing rates are horribly low. around 40% for the past 5 exams. http://whycfa.blogspot.com/2009/03/cfa-level-1-passing-rates.html shows this in a graph for the past 10 years. But take heart. If you pass Level 1, there’s a greater chance of passing Level 2 and 3. :slight_smile:

Low pass rates are one of the characteristics that make the program attractive.

eshawn Wrote: ------------------------------------------------------- > But take heart. If you pass Level 1, there’s a > greater chance of passing Level 2 and 3. :slight_smile: Nope. Level 1 is nowhere near the levels of 2 and 3.

I believe the pass rate for last Dec was 35% of entrants,down from 39% in June '08…either it’s getting tougher or relates to the number taking the exam? Obviously that includes those re-taking the exam!..there is much work to do!

eshawn Wrote: ------------------------------------------------------- > But take heart. If you pass Level 1, there’s a > greater chance of passing Level 2 and 3. :slight_smile: I would disagree. You have a mish mash of people taking the Level I exam who skew the results, thus creating the low pass rate. Folks are biting off more than they can chew. Some are chasing $$$, the designation only, etc… Many lack the required dedication and/or study preparation skills to pass, albeit there are a few who can wing it. Level I provides that high barrier of entry towards ultimately becoming a charter holder. The pass rates for the Level II & III exams are higher because the candidate population is vastly different than that of Level I. The pass rates don’t get higher because the tests get easier, they rise because the quality of test takers increases.

I agree with Chuckrox8. When I sat for the December exam I spoke with many people who only studied for a week or didn’t study at all. These people admitted that they know they did not have a chance of passing but wanted to know what was on the exam so they could decide if they want to register again. I spoke with a Stalla rep who indicated pass rate for people that follow their systems are in the 70%.

The Stalla rep may or may not have been blowing smoke up your ass because I’m pretty sure the company’s official policy is that they either don’t have or don’t disclose that number (although I could be wrong). Also, there’s also an argument that in addition to the number of unprepared people taking it the complicated language in some of the questions puts non-native English speakers at a disadvantage so the pass rate of those that are native English speakers is closer to 50%. Does this sound familiar to anybody, I seem to recall seeing an article and pass rates by country?

I found the following, unsourced, from the link below, referring to December 08 exams: United States: 36 percent of the 12,955 total exam candidates Canada: 35 percent of the 3,555 total exam candidates Europe: 38 percent of the 8,158 total exam candidates Asia and Pacific Asia: 35 percent of the 21,971 total exam candidates Central and South America: 33 percent of the 424 total exam candidates Africa/Middle East: 27 percent of the 2,734 total exam candidates http://www.nairaland.com/nigeria/topic-206155.0.html#msg3208609

I was able to find the stats for the 07 exam on the CFAI website: http://www.cfainstitute.org/aboutus/press/release/07releases/20070816_01.html so it looks like those figures are published by the CFAI

I completely agree with Chuckrox08 on that statement where “You have a mish mash of people taking the Level I exam who skew the results, thus creating the low pass rate.” That is also precisely the reason why the pass rates for Level 2 and 3 are much higher as the weaker ones are weeded out in Level 1. This was mentioned on http://whycfa.blogspot.com/2009/03/cfa-level-2-passing-rates.html. My earlier statement was derived purely from a statistical perspective. i.e. one would expect to have a lower chance to pass as compared to Levels 2 and 3 simply based on % pass rates.

eshawn Wrote: ------------------------------------------------------- > If you pass Level 1, there’s a greater chance > of passing Level 2 and 3. :slight_smile: Not necessarily – you could pass level 1 and still have zero chance of passing level 2. It’s possible. 0 = Your chance of passing level 2 and 3 if you never passed level 1 0 <= Your chance of passing level 2 and 3 if you passed level 1 <= 1.0

I know this has been debated a lot but I feel the NEW 3 choices will make a difference to the pass result…I feel the pass result for CFA1 wud be around 50% this time around…

They can just set a higher passing score, right? And yes, the pass rates are higher at L2 and L3, but you should keep in mind that recent passing rates at L3 (50% and 53% the past two years) mean that about half of a set of super-motivated people who have already passed L1 and L2, and are furthermore in most cases only a passed exam away from receiving the CFA charter, still end up failing the exam. L1 is a joke compared to L2 and L3, says this L4.

imranmir1 Wrote: ------------------------------------------------------- > I know this has been debated a lot but I feel the > NEW 3 choices will make a difference to the pass > result…I feel the pass result for CFA1 wud be > around 50% this time around… It’s difficult to tell, really. If this time around it’s 50%, maybe it’s because a number of candidates have been laid off and therefore can dedicate more time for studying. Who knows?

I think L1 will be 35% for June 2009.

Guys/Gals - please dont underestimate the level of difficulty that can be posed with even 3 answer choice. I have a feeling that CFAI will not let this change be a means to roll out loads of CFAs… At the same time for those taking a guess (for difficult questions or otherwise) the probability of getting a correct answer now becomes 0.33 from 0.25

rayllionaire Wrote: ------------------------------------------------------- > imranmir1 Wrote: > -------------------------------------------------- > ----- > > I know this has been debated a lot but I feel > the > > NEW 3 choices will make a difference to the > pass > > result…I feel the pass result for CFA1 wud be > > around 50% this time around… > > It’s difficult to tell, really. If this time > around it’s 50%, maybe it’s because a number of > candidates have been laid off and therefore can > dedicate more time for studying. Who knows? Absolutely I agree…

Whoa, I missed that one. The test is multiple choice with 3 answers now? I was wondering why Qbank was all 3 choice questions…

despite the potential of a greater number of people passing because there’s one less choice, all the CFAI has to do is to increase the pass mark. right now getting about 70% will get u a pass but for this year they may increase it to high 70s or low 80s. it could be getting harder people!

cloudstrife Wrote: ------------------------------------------------------- > despite the potential of a greater number of > people passing because there’s one less choice, > all the CFAI has to do is to increase the pass > mark. right now getting about 70% will get u a > pass but for this year they may increase it to > high 70s or low 80s. it could be getting harder > people! I’ve heard this as well. An 80% pass rate would be brutal, but by the same token, would only add prestige to the charter.