I have read the first 200 pages of Level 3 (not including ethics), and while I give full respect to level 3, it sure does start a lot easier. Level 2 first 200 pages is essentially all of quant - multiple regression, violations (heteroskedasticity, serial correlation,) time series. Ouch. For a guy who hasn’t taken a stat class in over 20 years, that stuff was brutal. Level 3 first 200 pages: behavioral finance, IPS, tax aspects of port mgmt. Not only is it not as difficult conceptually, it is just plain easier to read. I know I will regret saying this in a few months, but so far the readings have been (cough) mostly tolerable. Okay repeaters, let me have it.
I think some of the behavioral finance stuff is interesting, but could certainly be difficult in the form of essay questions.
The computationally heavy stuff (marginally heavier) are at the back end, make sure to make time for those.
goes to eleven: your experience with the first 200 pages sure makes me feel better. Just received the CFAI material yesterday…I’ll crack open the 2nd book tonight and see how she goes. RE: Tax aspects: Are the topics similiar to that of 2009 Level 2 curriculum? PVIF = (1+r)(1-tcg)+tcg and the like? TVNerd: treat Level 3 with respect then, I hear you. K
- Level3 students are more clever than Level2 students in average. - The pass rates are almost equal --> Level 3 is at least as difficult as level 2. Why? Because the exam is difficult. Don’t get fooled because there aren’t that many formulas. The exam questions are still very difficult!!
Baca, I hear you, complacency is preparing for failure… Going to have to bring my game face come June 2010…CFAI material all the way, making my own notes - just like Level 2. K
It’s tempting to underestimate the level 3 material upon first glance. The problem is, it is mostly qualitative jargon that can be applied very subjectively. The actual challenge is retaining all of it and spitting it out on exam day under time pressure in the manner the graders want to see it.
goes to eleven Wrote: ------------------------------------------------------- > I have read the first 200 pages of Level 3 (not > including ethics), and while I give full respect > to level 3, it sure does start a lot easier. > Level 2 first 200 pages is essentially all of > quant - multiple regression, violations > (heteroskedasticity, serial correlation,) time > series. Ouch. For a guy who hasn’t taken a stat > class in over 20 years, that stuff was brutal. > > Level 3 first 200 pages: behavioral finance, IPS, > tax aspects of port mgmt. Not only is it not as > difficult conceptually, it is just plain easier to > read. > > I know I will regret saying this in a few months, > but so far the readings have been (cough) mostly > tolerable. > > Okay repeaters, let me have it. Beware: based on my experience, most people were border line fail cases because of these sections (behavioral finance, IPS, tax aspects of port mgmt) and they were extremely surprised when they saw there breakup in these sections. All these sections are in AM so take it lightly on your own peril
From a repeater: Jobsearch hit the nail on the head. I sort of had the same feeling last year…I found the behavioral finance/IPS stuff interesting. I took it very seriously, and thought I nailed it on exam day. Turns out that’s exactly what made me fail - band 9. Also, keep in mind the AM section (essays, including IPS) is challenging also from a time management perspective. I went to about 2:58 before I could put down my pencil, and my hand and forearm were numb from writing nonstop. I recommend doing LOTS of practice IPS questions.
goes to eleven Wrote: ------------------------------------------------------- > I have read the first 200 pages of Level 3 (not > including ethics), and while I give full respect > to level 3, it sure does start a lot easier. This is a mistake to think this way. Remember that EVERYONE taking this test has passed level I and II while last year only 49% were able to clear level III. It does seem easy, but I assure you the exam will not be. I believe that one of the main reasons people fail this level is they believe in the myth that once you are past level II it is a cake walk. Buy into this myth at your own peril. It certainly isn’t true. > Level 2 first 200 pages is essentially all of > quant - multiple regression, violations > (heteroskedasticity, serial correlation,) time > series. Ouch. For a guy who hasn’t taken a stat > class in over 20 years, that stuff was brutal. While I agree it was brutal, once your understood the material you had it. I felt like anything could be asked and I could answer the question. > > Level 3 first 200 pages: behavioral finance, IPS, > tax aspects of port mgmt. Not only is it not as > difficult conceptually, it is just plain easier to > read. Easier to read, yes, but you could read it 100 times and still be asked questions in a way that you won’t be able to answer. It is WAY more qualitative and this leads to less concrete answers. In fact, I am sure you have noticed already that many terms in the behavioral finance section are defined at least two different ways (for different situations) > > I know I will regret saying this in a few months, > but so far the readings have been (cough) mostly > tolerable. > > Okay repeaters, let me have it. There it is. Find a way to get jacked up about the material, because if you don’t you will have a terrible feeling walking out of the exam center. Good luck!
i thought behavior finance is very easy until the day of exam
also concentrate on the IPS. it is crucial. BF does not weight that much, and the questions are really a pain… you could lose a lot of time on this and miss easily. my advice, if you want to be efficient, do ALL available IPS cases. these make the difference. also what was curious for me in 2009 is the weight that some of the not-so-relevant subjects had in the AM. I didn’t expect econ to have 19 points in AM (10%), or the testing of the WACC… my guess is LIII is turning into a LII, where any detail could be tested and could weight a lot in the exam.
The first few chapters of Vol#2 seem pretty wishy washy; much like ethics… I’m preparing for a lot of ambiguity come exam day ): K
I had the same reaction a year ago… IPS readings seem easy, but the exam questions aren’t. You’ll understand once start the EOC questions for indiv./instit., which are good practice for the exam. Do all of them, multiple times. Agree that there are surprises… I wasn’t expecting any Econ on the real test, and there it was for 20% weight (19 pts in am, 18 in pm). no wonder i’m a re-taker.
yeah, for whatever it’s worth, none of the readings are difficult, it’s just hard to put the stuff to bed, and you’ll find BF stuff (for example) is all over the curriculum. and then the questions were hyper-obscure (not from the main BF reading to a large extent… open to correction on this point). i studied so much (and passed, thankfully) but i was still finding obscure sections the last couple of weeks that were like breakouts “oh yeah, i forgot about this!” FWIW, in my opinion, if you are quantitatively oriented then level3 is the hardest by far. if you’re more someone who might think of going to law school, then L3 should be ok… if you think you’d be a top student at chicago business school or harvard law, then you’re a star and all levels should be fairly easy. i find at most people are very strong at one or the other.
Bacaladitos: Danish, Norwegian? Quick note on your assumptions… After my first read through of the material, I thought level III was super easy and the myth about Level III was given to us was true. Then I started doing questions, and I realize it was not the case… Don’t get fooled, the questions requires a comprehensive understanding of the material. Not just memorization of some quant formula. I did pass though, barely… Good luck