CFA LEVEL 1 2 and 3: FAQ

Showing posts with label FAQ. Show all posts

FAQ about CFA Exam

General

Does CFA Institute offer the exam in languages other than English?

In order to ensure fair, global consistency both in administering the exam questions and in grading candidate responses, we offer the exams in only one language.

Exam Enrollment and Registration

Sample and Mock Exams

What are the benefits of taking the sample and mock exams?

Sample and mock exams can provide a realistic assessment of your mastery of the CFA Program curriculum, and they provide valuable experience by mimicking the format and difficulty of the actual CFA exam.

When are the sample and mock exams available and when should I take them?

You should take the sample exam after working through the complete curriculum at least once. Two sample exams at each level are typically available for approximately 12 weeks prior to the exam.
You should take the mock exam close to the actual exam date. One mock exam at each level is typically available approximately 30 days prior to the exam.

How up-to-date is the material on the sample and mock exams?

All material is directly sourced from the current CFA Program curriculum and presented in the same manner as actual CFA exam questions.

How are the sample and mock exams like the actual CFA exams?

Each exam is designed to reflect the question formats, topics, length, and level of difficulty that candidates will experience on the actual exam. Please note that the sample and mock exams are intended only as a representation of the actual exams and do not mirror all possible question types or formats. Performance on a sample or mock exam should not be used in any way to predict performance on the actual exam.

What do the "recommended" and "required" score fields in the sample exam results mean?

For our sample exams, the two mean the same. In general, the required score is what you need to pass, and the recommended score is what you need to be confident that you know the material. For the sample exam, we recommend a score of at least 70 percent to be able to make a statement that your study has been effective.

Grading and Results

Why don’t candidates who pass the CFA exam receive information similar to candidates that fail the exam?

The score band information is intended to help failed candidates determine whether to continue in the CFA Program by giving them more detailed guidance on their performance. Reporting similar information to passing candidates would encourage classifications such as "high pass" and "low pass." We consider such classifications counterproductive. All candidates receive information on the score achieved within each topic area (<50, 50-70, >70).

Why don’t you post our exact scores on each section?

We do not consider one passing candidate to be more (or less) accomplished than another passing candidate merely because of their ranking relative to either the minimum passing score (MPS) or other candidate scores. To release scores would inevitably lead to such ranking, which would be especially unfair for candidates taking the same level exam in different years.

Do the pass/fail numbers published by CFA Institute include all the registered candidates or just the ones who took the exam?

The published pass rates include only those candidates who actually took the exams. The numbers do not include no-show candidates or those who withdrew.

Does CFA Institute recognize the highest scores annually or create an honors list?

No. CFA Institute posts scores as pass or fail and does not consider one candidate as more (or less) accomplished than another merely because of their relative ranking in a particular year.

Why doesn’t CFA Institute let candidates know what score is required to pass an exam or what score candidates achieved on the exam?

The minimum passing score (MPS) for each level of the exam is determined by the CFA Institute Board of Governors each year after the administration of the exams. Neither the MPS nor individual candidate scores have ever been released. To set the MPS before the administration of the exams would require that an absolute standard be applied without regard to the difficulty of the exams; this could potentially be very unfair to candidates, especially across time. The Board's determination is based largely on standard setters' evaluation of exam difficulty, which can vary from one administration to the next.

I received at least 50 percent on almost all topics on my results score matrix, but I still did not pass. How can that happen?

Candidates should not attempt to interpret an overall passing or failing score from the results matrix information. The minimum passing score for the exam is determined by many factors, and is not a predetermined or specific percentage of the points either for individual topic areas or for the entire exam. Specifically, candidates should not necessarily interpret scores between 50 and 70 percent as passing.

What is the "ethics adjustment"?

The Board of Governors instituted a policy to place particular emphasis on ethics. Starting with the 1996 exams, the performance on the ethics section became a factor in the pass/fail decision for candidates whose total scores bordered the minimum passing score. The ethics adjustment can have a positive or negative impact on these candidates' final results.
CFA Institute has a policy of not releasing either the minimum passing score or individual candidate scores. Consequently, CFA Institute does not release specific information about the ethics adjustment or the candidates who were affected. The adjustment has had a net positive effect on candidate scores (and thus pass rates) in most exam sessions. The published pass rates always take into account the ethics adjustment for borderline candidates.

Do I have to pass each of the individual topic areas in order to pass an exam level?

No. As long as you achieve a total score above the minimum passing score (MPS) set by the CFA Institute Board of Governors, you would pass the exam regardless of your performance on any individual topic. However, we advise against any "test wise" strategy that recommends ignoring a topic in your study. Offsetting a zero score in a topic could be difficult. Also review the ethics adjustment FAQ for additional information.Most important, an objective of the CFA Program is to develop candidate knowledge and skills to a generalist level in all covered topics. Employers have found this is one of the competitive advantages of charterholders.
Also be sure that you have clearly stated your intended answers. Candidates who change an answer or copy material from a template to lined pages (or vice versa) should cross out any material they do not intend as part of their answer. Graders must consider all material you submit, and if there is confusion or contradictory information, you will not receive credit.

On the Level III exam, I wrote my answer on a lined answer page instead of on the template. Was my answer graded?

CFA Institute grades answers that are written on pages labeled for a specific answer, regardless of whether you used the template provided. You will not be penalized if you did not use the template. Be reminded, however, that you waste valuable time by redrawing a template that is already provided for you. Instructions in bold print immediately following a question will direct you to the page numbers of the template if a template is provided. Candidates should answer on the templates provided and should follow the instructions given in the template. Answers written on the question pages or on the pages marked "Intentionally Left Blank" are not graded.

If my answers differ from those in the published guideline, will I receive any credit?

Possibly. The guideline answers are intended to show a representative candidate response given the CFA Program study materials assigned. Guideline answers may not include all alternative acceptable answers. Your answer may have received partial or even full credit.

What is the purpose of the score band information provided in the results report?

We want to provide failed candidates with information that might help them decide whether or not to continue in the CFA Program. We understand this can be a difficult decision, and we hope that failed candidates find this information useful.

I wrote in the margins of my essay book. Will this cause problems with scoring my exam?

Writing answers in the margin will not affect your scores; your answers will be graded. The only answers not graded are those written on question pages or pages marked "Intentionally Left Blank."

What about stray marks I may have made on my item set or multiple choice answer sheet?

Candidates are instructed not to make stray marks on the answer document as this may affect how the scanning machine reads and records information on the scan sheet.

What if I did not complete my candidate number?

Our experienced grading staff carefully reviews each answer sheet for completeness. A staff member will complete your candidate number to ensure your information is recorded correctly.

Approved Calculators

Will I be allowed to use a screwdriver during the exam to replace the batteries in my calculator?

Yes. You may bring one and keep it in your pocket or place it under your chair.

Why are only two calculator models allowed for use during the exam?

Many calculators have text-storing capabilities which could create an unfair advantage and compromise the integrity of the exam. It is a standard practice of many professional testing organizations to provide a short list of permissible models. In the current policy, the HP model is available for candidates who prefer Postfix notation entry, and the TI model is available for those who prefer algebraic notation entry.

During the Exam

Why can’t I bring my mobile phone into the testing room?

It is a standard practice of many professional organizations to prohibit all electronic devices from the testing room. This not only ensures a fair and equitable testing experience for all candidates, but also maintains the integrity of the exam. If it is discovered that you possess a mobile phone or any other electronic device in the testing room, it will be confiscated and you will be reported to CFA Institute for disciplinary action.

Should I be concerned that the HP 12C automatically rounds up when computing the time required to accumulate a given future value?

No. CFA Institute is aware that the HP 12C rounds up when computing the time required to accumulate a certain sum. We have taken that into consideration in the creation of questions and in the grading process.

On the exam, when trying to calculate a ratio that mixes income statement and balance sheet statement information, when should I use the average values of the balance sheet information as opposed to the beginning- or end-of-year values?

The way ratios are calculated depends on the availability of data and how particular ratios are going to be used. There is no "one size fits all" solution, and such differences are part of the nature of financial analysis. Candidates should be familiar with the assigned curriculum and be prepared to perform calculations and interpretations based on that curriculum. If it is relevant, the exam questions will normally specify how the calculation is to be performed (e.g., "use beginning-of-year balance sheet data for your calculations"). Candidates must determine the most appropriate data to use in any calculations. The intended use of the ratio will help you to choose the appropriate data.

In quantitative methods we refer to the z-table, t-table, and F-table. Will these tables be provided during the exam?

No. CFA Institute does not provide distribution tables with the exam. If a question requires information from a specific distribution table, that information will be provided with the question, but the tables themselves will not be provided. Similarly, time value of money tables (present value, future value, etc.) are neither needed nor provided. The two approved calculators are capable of performing any required present value and future value calculations.

When answering constructed response-essay exam questions, may I use abbreviated words to save time or must I write out all words in full?

Use of abbreviations is acceptable. Candidates are responsible for the clarity of answers and for ensuring that there is no uncertainty or ambiguity of meaning in the abbreviations used. Candidates should be cautious about abbreviating highly technical, specialized, or less widely used terms.

Why am I not permitted to have water at my table during the exam?

Exam books and answer sheets could be damaged as a result of spills. Water stations are provided in the testing rooms at convention halls/exhibition centers, and drinking fountains are accessible to candidates during the exams at universities and schools.

Will I be allowed to use scratch paper during the exam?

No. However, you are permitted to do scratch work in the exam book on question pages or blank pages. Exam admission tickets must not be used as scratch paper

What topics will I see on the exam during the morning session or during the afternoon session?

Traditionally on Level I, all topics are covered in the morning session and all topics are covered again (with different questions) in the afternoon session. On the Level II and III exams, some topics are covered in the morning session only and other topics are covered in the afternoon session only.

Should I use pen or pencil on my answer sheet?

Candidates are instructed to use a #2 or HB pencil only when completing their answer sheet. Using ink or other pencil types may affect how the scanning machine reads and records the information. Your answer sheet will be graded as it was submitted.

Can medicine be brought into the testing room and used during the exam?

Yes. You may keep medicines, tissues, and other necessary medical or personal items in your pockets or on the floor beneath your chair during the exam. They may be accessed as needed.

What if I did not complete my candidate number?

Our experienced grading staff carefully reviews each answer sheet for completeness. A staff member will complete your candidate number to ensure your information is recorded correctly.

What if I did not complete my name?

We primarily use your candidate number as an identifier during the scan sheet grading process; we only use names for reference when someone has written his or her candidate number incorrectly.

Will my using a pen cause a problem with scoring my exam?

Candidates are instructed to use a #2 or HB pencil only when completing their answer sheet. Using ink or other pencil types may affect how the scanning machine reads and records the information. Your answer sheet will be graded as it was submitted. Please ensure that only a #2 or HB pencil is used for future exams.

Exam Day

How will I know the exact location of my test center?

The exact location of your test center will be listed on your exam admission ticket. Learn more about test center locations and exam admission tickets.

How do I change my test center?

Follow the instructions on the test center change request page (login required). CFA Institute will grant such request if space is available.

Is there a dress code for the exams?

No. CFA Institute advises candidates to dress comfortably and in layers. Temperatures in the testing room should be comfortable; however, sometimes candidates get hot or cold during the exams. We also suggest that you wear soft-soled shoes to keep noise in the testing room to a minimum.

What is the CFA Institute contingency plan in the event of inclement weather?

CFA Institute will make every effort to administer the exam as scheduled. Please view the reservation of right to cancel policy.

What is the exam day schedule like?

Read about a typical exam day.

I have a medical condition that requires me to consume food at frequent intervals. Am I permitted to keep and eat snacks during the exam?

No. You are not permitted to eat or drink at your desk. Food and drinks must be left in the designated area away from the testing room and may be accessed during the lunch break only. If you have a medical condition (such as diabetes) that requires you to eat frequently, you may request an accommodation under the Americans with Disabilities Act (regardless of your nationality or where you’re taking the exam).

Exam Preparation

Where can I view past exam questions?

Many actual exam questions are embedded in the curriculum and included in the online sample and mock exams. We take great care to eliminate past questions that are no longer consistent with the current curriculum and question-formatting conventions. We also provide free sample questions for each exam level.

Are Level I candidates expected to memorize all the formulas presented in the study materials?

Candidates are expected to be able to perform the actions specified in the learning outcome statements (LOS). If a formula is required, then it should be committed to memory.

What features of the approved calculators should I be prepared to use on the exams?

You should practice and become proficient at using any of the specific calculator features needed to address the learning outcome statements (LOS) in the curriculum. Examples include, but are not limited to, present and future values, annuity payments, square roots, and exponents. You should also know how to use general features of your chosen calculator, such as changing the number of decimal places displayed.

Should I be concerned that the HP 12C automatically rounds up when computing the time required to accumulate a given future value?

No. CFA Institute is aware that the HP 12C rounds up when computing the time required to accumulate a certain sum. We have taken that into consideration in the creation of questions and in the grading process.

On the exam, when trying to calculate a ratio that mixes income statement and balance sheet statement information, when should I use the average values of the balance sheet information as opposed to the beginning- or end-of-year values?

The way ratios are calculated depends on the availability of data and how particular ratios are going to be used. There is no "one size fits all" solution, and such differences are part of the nature of financial analysis. Candidates should be familiar with the assigned curriculum and be prepared to perform calculations and interpretations based on that curriculum. If it is relevant, the exam questions will normally specify how the calculation is to be performed (e.g., "use beginning-of-year balance sheet data for your calculations"). Candidates must determine the most appropriate data to use in any calculations. The intended use of the ratio will help you to choose the appropriate data.

In quantitative methods we refer to the z-table, t-table, and F-table. Will these tables be provided during the exam?

No. CFA Institute does not provide distribution tables with the exam. If a question requires information from a specific distribution table, that information will be provided with the question, but the tables themselves will not be provided. Similarly, time value of money tables (present value, future value, etc.) are neither needed nor provided. The two approved calculators are capable of performing any required present value and future value calculations.

When answering constructed response-essay exam questions, may I use abbreviated words to save time or must I write out all words in full?

Use of abbreviations is acceptable. Candidates are responsible for the clarity of answers and for ensuring that there is no uncertainty or ambiguity of meaning in the abbreviations used. Candidates should be cautious about abbreviating highly technical, specialized, or less widely used terms.

What are the benefits of taking the sample and mock exams?

Sample and mock exams can provide a realistic assessment of your mastery of the CFA Program curriculum, and they provide valuable experience by mimicking the format and difficulty of the actual CFA exam. Find out more about the sample and mock exams.

When are the sample and mock exams available and when should I take them?

You should take the sample exam after working through the complete curriculum at least once. Two sample exams at each level are typically available for approximately 12 weeks prior to the exam.
You should take the mock exam close to the actual exam date. One mock exam at each level is typically available approximately 30 days prior to the exam.

How up-to-date is the material on the sample and mock exams?

All material is directly sourced from the current CFA Program curriculum and presented in the same manner as actual CFA exam questions.

How are the sample and mock exams like the actual CFA exams?

Each exam is designed to reflect the question formats, topics, length, and level of difficulty that candidates will experience on the actual exam. Please note that the sample and mock exams are intended only as a representation of the actual exams and do not mirror all possible question types or formats. Performance on a sample or mock exam should not be used in any way to predict performance on the actual exam.

I think I found an error in the curriculum. What should I do?

If you believe you have discovered an error in the curriculum materials, please submit full details to CFA Institute. The error can then be investigated and, if needed, a correction will be included in the appropriate errata list.

How can societies assist with the Prep Provider Guidelines Program?

Societies can assist with the program by helping to ensure that the prep provider they have selected is either a Prep Provider Guidelines Program participant or is in compliance with the program. In addition, societies can assist by helping to reinforce the messages of the educational purpose, rigor, and principles of the CFA Program.

Exam Enrollment and Registration

If I pass the Level I exam in December, can I register for the Level II exam held the following June?

Yes, candidates who pass Level I in December can register for the Level II exam held the following June. Candidates should consider whether they will have enough study time to prepare for Level II, given the approximately four-month period remaining until the June exam administration.

How long will it take to process my program enrollment and exam registration application?

Program enrollment and exam registration applications are processed within 48 hours, and you will be notified of your status via e-mail.

May I withdraw my registration for the Level I exam?

Yes, withdrawal from a Level I exam is permitted. Read complete information on the Level I withdrawal option.

How is the curriculum shipped and when will I get it?

The curriculum is shipped via UPS (Worldwide Saver for international shipments/UPS Ground for North America shipments). Candidates should allow six to nine business days for delivery. For international candidates, the package should reach the customs department within nine business days. It is the candidate's responsibility to clear the package from customs.

I just moved and sent in my address change form. Will you automatically change my test center?

No. Changing your address and changing your test center are two separate processes. To request a test center change for a CFA exam, follow the instructions for submitting a test center change request (login required).

I am not able to sit for the exam. Can I request a refund or transfer my registration to the next exam?

No. Once you submit your application for the CFA Program, all of our policies immediately go into effect. As our refund policy states, your CFA Program enrollment fee and exam registration fee are non-refundable and non-transferable (i.e. another candidate cannot use your fees and you cannot apply your fees to another exam offering). Your CFA Program enrollment fee will remain valid throughout your candidacy.

Pages