How to pass the CFA® exams on the first try
The pass rates for the CFA® exams can be discouraging. Don't get overly optimistic yet. While these pass rates may seem high, they do not factor in retakes or the numerous candidates who simply decide not to show up for the exam every year.
So why is the CFA® exam so difficult for candidates to pass the very first time? Believe it or not, many do not take the following steps:
1. Actually allot the 300 hours that the CFA® Institute recommends!
If you study for 15 hours per week, that amounts to approximately 20 weeks or 5 months of study time. I cannot believe how many candidates still try to cram the material inside of a month. Don't try it; it probably won't work (unless you're Stephen Hawking).
2. Focus on learning the material, not trying to game the test
Ideally, you work in finance (or aspire to) so much of this material will be useful to you anyway. The test favors candidates who understand the material and penalizes those who simply memorize formulas. This means doing the reading and actually learning the material before doing practice problems.
3. Pay attention to the study session weightings!
While you want to study all of the sections, there are certain sections that you want to spend more time on. Your likelihood of passing is much higher if you fail the lower weighted sections but do very well on the higher weighted sections.
4. Be prepared to sacrifice your time
That's right - weekends, evenings, whatever it takes particularly as the test date gets closer. Don't plan vacations within a couple weeks of your test date. Can you do this and still pass? Every now and then I hear of someone who accomplishes this, but you want the odds to be in your favor.
5. Don't be afraid to use other resources to solidify concepts
Some resources do a better job of explaining some of the concepts or just help hit home some of the theory in the readings. Don't be afraid to also consult the Kahn Academy website (great statistics lectures), university PowerPoint slides, or whatever else you can find.
Good luck and happy studying!
So why is the CFA® exam so difficult for candidates to pass the very first time? Believe it or not, many do not take the following steps:
1. Actually allot the 300 hours that the CFA® Institute recommends!
If you study for 15 hours per week, that amounts to approximately 20 weeks or 5 months of study time. I cannot believe how many candidates still try to cram the material inside of a month. Don't try it; it probably won't work (unless you're Stephen Hawking).
2. Focus on learning the material, not trying to game the test
Ideally, you work in finance (or aspire to) so much of this material will be useful to you anyway. The test favors candidates who understand the material and penalizes those who simply memorize formulas. This means doing the reading and actually learning the material before doing practice problems.
3. Pay attention to the study session weightings!
While you want to study all of the sections, there are certain sections that you want to spend more time on. Your likelihood of passing is much higher if you fail the lower weighted sections but do very well on the higher weighted sections.
4. Be prepared to sacrifice your time
That's right - weekends, evenings, whatever it takes particularly as the test date gets closer. Don't plan vacations within a couple weeks of your test date. Can you do this and still pass? Every now and then I hear of someone who accomplishes this, but you want the odds to be in your favor.
5. Don't be afraid to use other resources to solidify concepts
Some resources do a better job of explaining some of the concepts or just help hit home some of the theory in the readings. Don't be afraid to also consult the Kahn Academy website (great statistics lectures), university PowerPoint slides, or whatever else you can find.
Good luck and happy studying!