Exam Myths

CFA Level I
#1

| What did you hear about the exam and then find out isn’t true? |

#2

  1. L2 is the hardest and L3 is a “walk in the park”

  2. Picking the most conservative answer in ethics is usually correct

  3. You have to do the questions really early fast because the exams are very time constraint

  4. Multiple choice with only 3 answers is easy

  5. Just focus on acing the big topics and don’t bother with the rest because you can always guess and bet on getting 1/3 of them correct.

Thanks to Greenman, i have more to add:

  1. Your employer cares a lot about how many attempts you took at each level and you will get a job offer because you passed all levels on first attempt

  2. Having a CFA candidancy on your resume guarentees you a job in finance regardless of experience

  3. Having a background in Econ (or Accounting or Statistics) is a HUGE advantage and will most likely find the CFA exams (at least L1 and L2) easy

  4. Passing all the exams will make you a hot IPO, guarentee a huge salary and bonuses to retire at age 40

  5. If you do not pass all 3 levels before 25 years old, you are too old for CFA

#3

^^^ #2 especially

#4

I like Nana’s list. Especially #1.

To me, the biggest lie was “CFA is the best way to break into the industry. Pass it, and you’re automatically worth at least $85k.”

#5

disagree with number 9 there…

accounting makes about 20% of the paper and for those with an accouting background l1 FRA is pretty easy…

and look at the posts on forum of others without an accouting background…they find it the hardest thing on l1 curriculum…

#6

I have one advice for anybody attempting level 1:

Myth #1: You can manage FRA (replace with Econ or Quant) by just learning formulas by heart instead of trying to vaguely understand what is going on

I realised this way too late, even with FRA, understanding the statements is much easier than trying to remember a bunch of formulas without understanding what they really mean.

#7

dang…that’s a myth?! =(

#8

I can tell you what wasn’t a myth:

“Know the Ethics and FRA”

#9

It’s easier for accountants in the accounting section yes, but i don’t think accountants generally find the exams easy though, as a lot of them still fail the exams regardless.

#10

maybe they dont work harder than others or it could be anything else…

but cetirus peribus accountants probably have to put only 60-70% of the time as compared.to non accountants

#11

But even putting 70% of the time of what non accountants put barely qualifies as being “easy”

#12

“Score greater than 80% in schweser qbank, and you will pass the actual the test.”

#13

FWIW - Accountants may have it easier at Level 1, because they already know the basics of accounting. However, accountants are historians, not fortune-tellers. So, IMHO, their advantage significantly drops at Level 2.

A basically trained accounant knows how to properly CREATE the financial statements–that’s it. They don’t know how to “normalize” or “adjust” financial statements, they’re not trained to analyze them, and they’re not trained to use them.

#14

havent opened the books of l2 yet so cant say…

it depends upon the background of the accountant…a normal accountant who doesnt understand more than basic journal entiries doesnt know how to adjust accounts…

accountants from audit related courses like CPA/CA who hve read accounting standards in detail know pretty well how to adjust accounts and use them

#15

Generally, Accountants do have an upper hand in FRA but they cry in derivatives/Stats so that balance outs.

But at least they know how to manipulate things since they know how to create them.

A accountant buddy of mine is teaching me how to play with things and I must tell it’s an art. wink

#16

And about the myths

*CFA is just an extension of “Options, futures and other derivatvies” (It’s a book on derivatives). I saw it online and fainted right away

*CFA is considered an implicit requirement to join the financial services industry

*Only geniuses who have a very high IQ can do it

*L2 is the hardest of all levels. (I have not personally experienced either but people on forums say L3 is the hardest)

*Employers would be at your feet once you do the CFA

*Once you do the CFA, you become like Tony Stark (Ironman). Money, girls etc. will be all over you

I wish the last two points were actually true. Sigh :frowning:

#17

…

#18

… Hi, can anybody tell me how to delete posts? I acidentally double posted.

Thanks

#19

if just the last one was true i’d probably be like level 10 by now =)

#20

Haha, spot on!