For those who Passed, Can you give some advice on how to pass the exam? What did you do to pass level 3?
you sound like Daj in 2
* Start early, no matter what ppl tell you! most ppl on AF said they will start after new year’s and then it became feb… but i started in November, had time to go over the whole material twice! * Do schwiser, passed all 3 levels using schwiser n nothing else! * Solve as much as you can… * No matter how bad u do in the morning session do not give up and come back for the afternoon one and give it your max! best of luck…
- Start early (I started in Nov) 2. Plan everything with a good time buffer, because things go wrong, you fall behind, etc. 3. Do all the CFA (afternoon) sample exams and the mock exam. Also Schweser sample exams are ok. 4. Do TIMED morning session exams for 2008, 2007, 2006, and 2005 (or just practice on 2005 and 2006, then time yourself with 2007 & 2008). 5. Aim to go over the material 3 times. It’s tough with work and all, but if you start early enough and plan ahead, it’s very doable. Throughout the CFA Program I’ve learned that you’re either a) fully dedicated and committed or b) you’re going to fail. If you’re not going to go all out, you may as well not bother.
Hi there, First let me state that all three levels of CFA are difficult. Here is how I went Passed Level one first attempt Passed Level two first attempt Passed level three of THIRD ATTEMPT The level three exam is not like the other two. If you dont prepare properly you will fail. CFA institute have introduced textbooks last year for the exam. And they did so for a good reason. Their is a alot of volume from the textbooks and they want to see if you can get through all of them. The questions for the exams comes from the textbooks, not schswer or any study guide you will have. The study guides are good for doing practice questions, and for some sections, not for all. Textbooks are the key. If you want to pass here are my pointers for what its worth 1) Start early - Nov/dec is good 2) try and read all the material quickly once, and then do examples and then read the material another two times 3) the portfolio management questions are not difficult - they are easy If you read the textbook and go through the examples and also 2004 - 2008 CFAI past year sample questions on portfolio management, they are similiar in style 4) Behavioural finance is a big part of Level 3 - there WILL BE A question on behavioural finance - you must be able to identify them in situations. 5) the portfolio management questions for institutions are easy if you follow the textbooks. 6) READ THE GIPS STANDARDS - all of them four times (they give this question away to see if you have read it) - Their will either be a GIPS correction question OR A GIP calculation question - Put money on this 7) Read the handbook on ethics at least twice - ALSO read the asset manager code of conduct (they combine questions with this in ethics) 8) AIM to read the material at least thrice and practice writing your answers out in full for portfolio management practice questions 9) The morning paper needs to be written quickly - there is no time to sit and think about answers. write FAST but neatly, dont run out of time. For the afternoon paper - be prepared for the following questions Ethics X 2 - 12 questions Fixed income X2 - normally 12 questions Alternative investments (CFA Love this questions - it will be there) Bond porftfolio management (12 questions) another CFA favourite Derivatives (12 questions) Equity portfolio management and Economics (12 questions) I studied from Schsweser for the first two time for level three and I failed. On the third time I went through the textbooks. If you do the textbook questions you will get through because the style and concepts are the same On derivatives Use the Chance & Fabozzi CFAI notes exclusively. Solve all the problems at least twice and reviewed the material at least 3 times. One thing needs to be noted for derivatives. There is a ton of material to be studied. It a big part of the exams. Make sure you know If this helps here is a template of questions they are likely to cover. just make sure you update for new material in 2009 Morning Essay Individual Case study and return calculation with constraints Behavioural questions – separate on character - check Low basis stock, multiple accounts, alpha hunters, one of those sections Allocation of portfolio Institutional All Types Pension questions – DB and risk New section - check General Portfolio Management Rebalancing Execution decisions trading Caclulation DPS: Sharpe Grinold Equity Portfolio management Corner portfolios Equity risk premiums – favourite topics Return analysis GIP Economics Afternoon - MCO Ethics 2X Derivatives 2X - Options, forwards, swaps VAR 1X Alternative Investments 2X Fixed income analysis 2X Portfolio Management 3X Economics 1X GIPS 1 X BRIC 1X Corporate governance 1X Good luck to all for Level 3 - dont underestimate it. Thats my advice to all of you. Go in prepared thats the only way.
“Throughout the CFA Program I’ve learned that you’re either a) fully dedicated and committed or b) you’re going to fail. If you’re not going to go all out, you may as well not bother.” So so true, I’m immortalizing this quote by Shads right now
AFJunkie Wrote: ------------------------------------------------------- > “Throughout the CFA Program I’ve learned that > you’re either a) fully dedicated and committed or > b) you’re going to fail. If you’re not going to go > all out, you may as well not bother.” > > So so true, I’m immortalizing this quote by Shads > right now Good quote, I like it.
Thanks for the detailed tips, Nes, Shads, masa. thanks a bunch.
@Nes - Thanks a lot for the detailed advice and study plan. It would certainly help us in our preparation. Also, awesome quote.
Hi, Shads, Good tips and that’s the way I retain knowledge as well. Where can we get the “CFA (afternoon) sample exams and the mock exam”? Thanks.
AFJunkie Wrote: ------------------------------------------------------- > “Throughout the CFA Program I’ve learned that > you’re either a) fully dedicated and committed or > b) you’re going to fail. If you’re not going to go > all out, you may as well not bother.” > > So so true, I’m immortalizing this quote by Shads > right now No offense, but this quote couldn’t be further from the truth. There are many people on this board who are fully dedicated and committed and did not pass. Not everyone is able to make this program the top priority in their lives. I’ve been in this program for 7 years now I think, and I’ve been fully dedicated and committed through the entire process, but it will never take priority over my family or job. One day I’ll finish. Others in the same situation have already done as much.
I will second what Nes said. There are certain topics that you KNOW will be there. Make sure you are comfortable with: Individual and Institutional IPS (do all the questions in the old CFA morning exams and go over the CFA texts for more examples) GIPS (pretty straightforward - know the disclosures and calculations) Ethics (this is the hardest material in the program IMO) Fixed Income Derivatives (lots of formulas but just knowing the big picture can get you a lot of points) CFAI also likes Alternative Investments so it will probably show up. Behavioral Finance is a gimme topic so make sure you know the different terms and what they mean. No calcs so study this when you want to take a break from the plug-n-chug. Performance Attribution was on the 06 and 07 exams. It was not on the 08 exam so I would expect it to show up in 09. Make sure you know how to solve these using the CFA texts. Schweser sort of dropped the ball in 07 because the exam question was different than what was in the Schweser notes.
I think the idea is that commitment is a necessary condition; unfortunately, it is not a sufficient condition. I’m rooting for you guys! I have a feeling I passed by the skin of my teeth. (Still scratching my head on how I got the lowest ethics score I got on any exam EVER).
There was performance attribution on the 08 exam; it was just a Fixed Income attribution, rather than an Equity one.
bchadwick Wrote: ------------------------------------------------------- > There was performance attribution on the 08 exam; > it was just a Fixed Income attribution, rather > than an Equity one. which was poorly covered in schweser too
watch the Antonio Margarito vs. Miguel Cotto fight. go in like Margarito.
Frank, what are you up to these days?
Thanks Nes for ur valuable advice, its really indepth analysis
this is just a great post. I wish we could keep it on first page all way throughout to june09. i have already aved this on my desktop and plan to read it to keep me in chek. many thanks
happyking02 Wrote: ------------------------------------------------------- > Hi, Shads, > > Good tips and that’s the way I retain knowledge as > well. Where can we get the “CFA (afternoon) sample > exams and the mock exam”? > > Thanks. Hi happyking, The sample exams and mock exam I was referring to are the CFA Institute’s exams, so they’ll be available on its website. Some people on this forum have said the sample exams didn’t help them. I can tell you they really helped me, just because they got me used to the difficulty of the afternoon test (and I ended up doing very well on the exam pm session). But I recommend you do your first sample exam about 3 weeks or 1 month before the test, don’t wait till the last week to do them. The sample exams are two hours long (there are three), and the mock exam is a full afternoon session (there’s only one). The sample exams are about $60 each. Not cheap, but worth it in my opinion. AFJunkie & Dwight, My wisdom knows no bounds. 
Big Babbu, I understand that some people aren’t able to make as much of a committment as others because of family, too much work, etc, and that they do their best. Obviously many people fail not for lack of trying. I’m not saying everyone who fails didn’t try hard enough. What I am saying is that it’s impossible to pass if you don’t go all out. In other words, it’s possible to go all out and fail, but it is not possible to pass without going all out. Edits: to include sample exam info.