The typical pass rate for CFA stage I examination has been round forty two–43 p.c for last few years. The minimum passing rating for cfa study material level 1 stage I examination ranges from sixty five to 70 percent. It is not that troublesome to score those many marks within the CFA level I exam if one is well prepared. But nonetheless, why so many candidates fail to cross the hurdle? The answer is easy: The candidates are beneath-prepared.
The CFA Institute conducts a survey and asks the candidates about the common hours required by them for passing the exams. The common hours as reported by the profitable candidates have been round 300–310 hours. So, a new entrant would plan his research time as per those hours. However can an average candidate pass the examination by finding out 300 hours? Well, it depends on many factors. However there’s one thing we all should keep in mind that folks have a tendency to overestimate their abilities and underestimate their reporting hours. So, it is potential that these guys on an average might need devoted four hundred+ hours for preparation but reported solely 300 hours on the survey.
The CFA Institute curriculum books for CFA level I has around 3,000 pages of content. Many of the third party content material providers also have round 1,200 pages of content. If one is finding out those matters for the first time, then it is not expected to review and take up more than 5–6 pages in an hour. An experienced fellow is perhaps able to finish 8–10 pages in an hour but there is plenty of content material in the CFA curriculum, and many of the guys are not conversant in that. So, assuming that you’re new to the matters, it could take approximately 200 hours only for first reading in case you are reading it from the third party content providers. And it could take around 500 hours to finish that from the curriculum books. We’ve finished just the primary reading. It is difficult to retain the content in one reading. It’s good to revise it at the very least as soon as more to retain the topics. The revision would easily take 50–100 hours.
Assuming that you take 200 hours for first reading and 70 hours for the primary revision and let’s say 30 hours for the last revision. Then, you’d require around 300 hours of reading the content only. It’s essential to follow the inquiries to turn out to be proficient in answering these within the exam. Making an attempt 2,500 to 3,000 high quality questions is nice enough for that. It takes round 1.5 minutes on a mean to attempt one query after which it’s good to assessment these questions as well. Assuming 2 minutes per query for trying and reviewing, you would need 6,000 minutes or a hundred hours for working towards the questions. These 3,000 questions also include the query from a couple of full-size mock tests that you plan to attempt. So, an average candidate who will not be much acquainted with the CFA exam matters would want approximately 400 hours of the preparation.
That’s the primary reason why plenty of candidates are under-prepared once they write the examination on the examination day. Candidates plan their schedule as per 300 hours after which find themselves lacking in complete understanding as either they must rush through the topics or fail to attempt required number of questions for practice.
So, how should one plan the schedule for the examination preparation? The best way is to allocate more time than you think that you’d require for it. It’s good to allocate 25 percent additional time. Should you think that you are able to do it in 300 hours, then allocate 375 hours. But then one cannot even estimate accurately because the syllabus is huge. One should start with two subjects: Financial Reporting and Analysis and Quantitative Methods. These two are excessive areas, and they require completely different ability sets. Note the total period of time spent in reading those areas and then modify your schedule accordingly by taking a median of that time. Allocating more time is also vital because it’s possible you’ll end up dealing with some undesirable occasions like illness.