how do so many people fail?

CFA Level I
#1

I don’t understand why the pass rate is so low. I know many people who have taken the exam and all have passed each level on the first try. I also saw about 5 people I know in the ATL testing center last Saturday that I am sure will pass. Do that many people without a finance/accounting background sit for the exam? I guess I just don’t understand how 60% of people fail when you only have to get 70% of the answers correct. Has the CFAI institute published any stats on the backgorunds of those sitting for the exam? just curious

#2

I’ve been curious to see what the U.S. pass rate is compared to the rest of the world?

#3

Yeah I’m pretty sure the US Canada pass rate is much higher. Lots of people esp in the Asia Pacific who take the exam have english as their second or third language. I imagine their pass rates are much lower

#4

According to Wikipedia In 2006, Europe achieved the highest average pass rate for the Level I, II and III of the exam with an overall success rate of 57% of candidates; versus 54% for the USA and 49% in Asia and Pacific. http://en.wikipedia.org/wiki/Chartered_Financial_Analyst

#5

Yeah, I took the exam in Pakistan and when the June results were published, the papers said only 33% passed, compared to about 28% or so in the ME.

#6

many people fail because the exam is hard

#7

And many people think their MS in Finance or MBA will carry them and start studying in Thanksgiving. I talked to a few people who did that. I was funny to talk to them again right before the PM session and hear them say “Yea so I found myself guessing a ton…” Sorry but I don’t care how much finance background you have. The exam questions were so detailed, it would be impossible to pass without studying no matter how smart you are.

#8

cfagoal2 Wrote: ------------------------------------------------------- > many people fail because the exam is hard Yeah, even a recent Finance or MBA graduate needs to study for this exam, simply because they will ask lots of details.

#9

all i am saying is that after a little studying, someone with a strong finance background shouldn’t have that hard of a time passing. I suppose some people might not have studied because they thought it would be easy for them…but this wasnt the case for anyone I know. All have MBA’s and studied a good bit. They will pass…so who are the people failing? I think the “english barrier” might have something to do with it, too. anyway, hope everyone on here did well. I used this site a good bit and it was very helpful.

#10

all the people that only did “a little studying” are likely to fail. I am going for my MBA right now with concentration in finance and accounting and I still had to study a lot for this exam, true I was exposed to a lot of the material before, but I had never been tested on all of it at once and so extensively on the concepts rather than formulas.

#11

Anyone have any guesses “Passing rate in Canada” like if 46 % passed in June 09 does that probability of students passing in Canada might be even more ?

#12

yes you should have took the test in Canada during June

#13

well I am taking it next June (first attempt and hopefully last as well:))

#14

be sure to sign up for the test centers in canada for better chance of passing

#15

Candidates Passing Level Three CFA Exam in Selected Countries, Territories Number who % of level 3 test-takers passed level 3 who passed United States 3,720 69% Canada 964 59% United Kingdom 746 82% Hong Kong 409 47% Singapore 294 49% Germany 284 77% Switzerland 257 76% Korea 182 43% Australia 174 77% South Africa 160 59% Mainland China 153 62% The Netherlands 97 74% India 96 72% France 94 68% Spain 77 65% Japan 75 44% Malaysia 64 45%

#16

already did Toronto roxs lol

#17

thanks intewig, that’s for level 3 and I still have long way to go lol… P.S. Canadian didn’t do well relatively

#18

I agree that those that studied a little bit might not have done great. I guess it depends on everyone’s definition of “a lot”. I just finished an MBA in Finance and also have a Masters and BBA in accounting. I probably studied close to 75 hours…which I think is a good bit (and I do think I passed). I have studied (and been tested on) all of those areas before, though. It is definitely alot of material to be tested on at once.

#19

Why do people fail this exam (at L1). 1) A substantial number are career-switchers without a finance background (lots of IT, Engineering, CS, Physics, Econ, etc.) 2) People underestimate the amount of time required to review for the exam, and allocate a week or two instead of several months. Whether or not you think it’s hard, it is a lot of material. 3) People underestimate the effects of a six hour exam. What’s clear in your mind at 9:00am may start to get very fuzzy at 3:30pm. 4) People don’t manage their time properly and can’t answer the questions in 90 seconds each (but may be able to do it if given 120 seconds each). 5) People panic over questions they think they should know but don’t, and this undermines their ability to answer other questions they do know. 6) People think the exam is really really easy, but find out that the CFA is very good at offering seemingly correct answers to the most commonly made mistakes.

#20

i bet canadians have aboot the lowest pass rate, eh?