I told myself that if I do not pass CFA level I exam then I will give up on studying because it would be impossible to pass next levels as level I is the easiest one. Was studying really hard for about 5,5 months and scored around 95 percentile on CFA level I. I have never been an extraordinary student. Passing those exams is very much achievable so ignore the noise, push and focus on your goal.
I share your thought.. Exactly.. So True, reminded me those days when you see the stressed out students in campus before exam - All browsing though their books Minutes before exam... So much Drama...
I told my self the same so when I didn't pass level I i gave up. I did hard jop studying and could answer most practice questions correctly but not as fast as the real exam needed and that was my weakest point. I had to skip long questions answering them randomly while focusing on short questions only. I dont think am gonna waste my money and time again
same, I passed the July exam with >95 percentile. I didn't study very seriously because I have other commitments and things going on in my life but the exam itself is not that difficult.
I think fewer questions definitely plays into it. It's obvious. We're being tested on less material, yet the amount of material we need to cover as candidates has increased. Essentially, much less margin for error. Particularly when the institute wants to test fringe topics of no relevance.
Hi Mark, why do you think moving from paper based to CBT is not a factor ? Especially for item set questions where you have to keep on scrolling up and down for questions and contents. Also my experience is that it is far better to concentrate on questions in paper than in a screen ?
I completely agree... I passed L2 in May but hated having to scroll around so much... it breaks focus vs having everything on paper right I'm front of you.
I dont agree, while I do think that CBT is not as good as PBT but I dont think it can contribute to you failing. I wrote Level II in May and because of software glitch my computer was not allowing me to put questions and vignettes side by side which made me to read vignette first and close it then look at the questions and do that back and forth, but I still passed. I just think if you know your stuff it doesn't matter in what form the exam are.
I sat L2 in May 2021 and failed for the second time. First L2 try was June 2019. After I received the result, I decided immediately that I am not going to try again, and focus on getting a new job. It worked out: I started a new job in October 2021, and invested my previous usual CFA prep time in investment research, gym, and quality time with my girlfriend. Best decision I could make.
To anyone thinking about using MM. I switched from another provider I used in L1 to him for L2 and it made all the difference. I have dyslexia so reading can be really frustrating for me. His lectures as a supplement to wordy sections and the EOC question videos are phenomenal. Starting L3 studying this week and here's to one and done on all 3 sections! Thanks Mark!
Occams Razor : This philosophical razor advocates that when presented with competing hypotheses about the same prediction, one should select the solution with the fewest assumptions. What's more likely - the new shorter CBT exam is much more difficult, or that thousands of candidates did worse on an exam after most were given more time to study?
Consolation… I do think factor 3 and 4 are the most significant…but all responsibilities go to CFAI then…it’s CFAI decision to have fewer questions…and candidates have no choice but to accept it…manipulating the MPS to fail more candidates will only have side effect and low pass rates will only discourage new candidates to the test and candidates to retake…so a very serious message to CFAI…give a pass to those who deserve and fail those who really did poorly…do not manipulate the mechanism and fool candidates
Sorry to hear about your dog sir. I just want to thank you because without your help it would have been very difficult for me to pass level 2 august. Your content was very useful and it helped me reach 90th percentile. A huge thanks again.
I wrote LVL 1 for the second time in August and unfortunately failed by what I believe to be either one or two questions(I was right on the line). I used MM and saw significant improvements in my scores. I was able to study more efficiently the second time around and hence studied less hours but was able to grasp and master the information more easily compared to my first round. I am debating whether I should write the exam again ASAP in Feb 2022 given my circumstances. Work has been piling up so I don’t believe I’ll have as much time to devote towards studying. But since I’m right on the line and only need to brush up on a few topics, perhaps I can just devote my little time towards the two topics I scored in the low 60s. I am slightly frustrated that I merely failed due to the unprecedented high MPS during COVID and may consider waiting it out before I am confident I can pass given I have already wasted $2k. But I don’t want to wait too long and lose the information/have the CFA significantly update the content from Aug 2021 exam info.
I am on the same boat. Failed Feb 2021, and Aug 2021 by a hair (was right on the MPS). I was determined to give up if I failed the second time around. However, it also hurts me so much to see how close I am into passing. Since you can only take maximum 3 times per level now, I decide to give it one more go for Feb 2022 might as well. Third time is a charm right?
CFAI just wann fail more candidates to enforce them register again! Not every body earn in dollars bro! Why should pass rate drop to be so high!!!? Is it FAIR with CLIENTS as repeatedly mentioned in ETHICS??!
Sat for second time, L2 and failed. If the graphical representation of my score-to-mps is accurate. I scored much better, but my score-to-mps didnt change.
I sat for level 2 and passed comfortably. I didn't have any deferrals from level 1 and 2 so I was lucky in that regard. I took level 1 as a paper based test and level 2 as computer based. I must say, the computer based testing was not on level with paper. Having to use a white board to do math problems instead of paper and pen definitely threw me off a bit. I'm not sure if others felt the same way but I think that'd be a factor to consider in the lower rates.
So sorry about Buddy. I just lost my Spout on July 8. Studying has helped me get through this painful time. Thank you for all of the insight on the pass rates. As an FYI, I was registered to sit in July as a first timer. Two knee surgeries prompted me to defer to November.
Everyone seems to forget that February 2021 also had deferred candidates (from July 2020 + December 2020) and had a "normal" pass rate of 44%. Additionally, February 2021 also was the first time the CBT was introduced with fewer questions, and again, "normal" pass rate.
Here is my hypothesis: cfa requires time,at home, studying. That kind of time has dramatically increased recently.My guess is that passing score got higher.The strong had time and are scoring much better now.
When CFA first announced moving from 6 hour paper to 4.5 hour electronic exams there were huge amounts of charter holders screaming that "this will dilute our designation, we need to boycott this, etc. etc." Hate being conspiratorial but is it possible CFA attempting to appease those people?
One thing that I yet don't understand is how it is possible that the deferred scored LESS (???) Shouldn't we assume that having more time to study should increase your chances to pass instead of decreasing them?
the only argument that makes sense is they're reducing the pass rates so more candidates retake the exams and make up for the 2020 dramatic reduction in applications. They don't want to tell the truth because it'll dishearten applicants and prevent them from signing up for the exam, they need steady flow of applicants to generate revenue. This deferred exam argument doesn't add up because none of the other financial designations have experienced anything similar to this. They put such great emphasis on ethics in the curriculum but they are being hypocritical by not being transparent.
This couldn’t be more discouraging for those taking level 2 next month. I think the low pass rates, especially at level 2, has to do with fewer questions. Level 2 has way more material with much more depth and they dropped the amount of questions by 26%. If the pass rate did in fact increase to 70%, that means you can only get ~26 wrong to pass. So discouraging. And all that scrolling on a computer is going to be such a distraction. They should provide paper copies of the item sets to avoid the scrolling.
Dear Mark, thanks for the videos and sorry to hear about your dog. Just a thought, maybe there is a philosophical factor? Candidates just don't see the point of working that hard in this disrupted world. Recently the US media reported record high of number of people quitting their jobs who claimed the Covid-pandemic put them in a new perspective of life. This could also be the reason of reduced motivation and level of commitment towards the CFA exam.
I think unquestionably another Factor has to be the job market right now. Specifically how many job openings there are and for people that would have been passing the test (smart, determined) it is not very hard to gain employment right now. I know my firm is begging people to join for six figures and the candidate pool keeps getting smaller and smaller. I think some people therefore are not pursuing the CFA at this time because they don't feel like they need it for their employment chances.
I have seen here in India, a set of people losing jobs, another set with salary reduction of 50%.Then the 3rd set which has no trouble finding better paying jobs.. there is a shortage of qualified people in some sectors.
Begging for people to join 6 figure jobs? What is the name of the company begging to pay people 6 figure salaries? Take alook around you and around different countries and maybe rewrite the part about begging cause it make no sense at all.
MM with charter in rearview still listen to your updates...Godspeed on pooch...As been thru that ..finally wife ready to get a Pup and Kitty as I started lev3 prep in 19. Circle of life...
I would say that cbt allowed cfa to look and analyze other variables, like time scrolling trough questions, order that a certain candidate choosed to answer them, It even allows to estimate the probability that the candidate is taking blind shots based in his/hers own statistics, and they are still figuring out the best way to apply this new analysis and how this translates to candidate performance, it's definitely certain that they aren't just looking at overall hit rate anymore
@Mark Meldrum Is it possible that the pandemic has led more people to enter the candidate pool? - This hypothesis can suggest that more people who otherwise won't have taken the CFA exam are giving the exam for the sake of upskilling due to the devastation caused on their careers by the pandemic. If more people are indeed giving the exam (we can assume that these candidates are lesser able on average than the historical average passing candidate), then the Level 1 pass rates do make some more sense. It still won't explain the Level 2 pass rates entirely.
I went to August exam without studying anything and got 63% questions right just by remembering things studied 12 months ago... I scored high in the percentile table and I was quite suprised about my memory. I got 70% questions right in 4 topics and more than 50% in everyone. I left it because I started a new job and had to learn some financial modeling but in any case my view is that people are not studying hard... don’t be afraid about the results and keep pushing forward!!
Hi Mark, I wonder why you didn't consider in my opinion one of the main factors that might affect low pass rates - the transition to use third party - Prometric. Even if CFA Institute has no shareholders and it is a nonprofit organization, the third party might have a conflict of interest. There are many candidates that suffered due to quality of PCs used for the exam and not only computers.. I think there is a clear conflict of interest for the third party provider - less favourable conditions for candidates -> lower pass rates -> more new attempts -> more profit. Do you know are there people from CFA Institute who check the quality of the exam conditions and validate that answers chosen by candidates are the same that actually get to CFA Institute for marking?
I've failed LVL1 for the 2nd time in july, deferred one. After that I've realized that such numbers (22% and more than 70% MPS) are overwhelming for me, so I think I give up now, I'm done with CFA. With the old numbers I've had some chances, with these - zero. Maybe I'm just too old for this sh*t (I'm 37)
Sorry for your dog. I wrote L1 on August and passed on first attempt (got deferred twice, June 2020 and Feb 2021), I used MM and I think the exam was harder than them the CFAI mock, which was harder than CFAI Qbank. I ended up getting all 70 or more, except ethics which was high 60s. I watched all MM videos and did CFAI Qbank once and did 90% of the CFAI Qbank again when I went to review phase, but yeah the mock was harder and the real test even harder (my scores on CFAI question bank was around 80-82%). I studied around 350 hours.
I think they raised the MPS, one of the reasons that I think it happened to lower the pass rates is the people who grade the questions on difficult are probably saying a question was easy when it wasn`t that easy and them this happens to increase the MPS.
In the sake of having a level view out there, I have written and passed lvl 1 in dec 2020 and lvl 2 in august 2021, but i have felt the opposite, that both mark meldrum's and CFAI practice exams and questions were more challenging than the actual test. I guess that will depend in part to whom you ask.
@@felipegonzalezgomez8898 I did not use any prep provider so I was comparing CFAI practice exams to the actual exam. For level two I will be using MM. I really would have benefited from the video lectures, because as you know the CFA text is not always written in the most effective way.
@@felipegonzalezgomez8898 took level 1 Dec 2019 and exam was easier than cfai Qbank and mocks. Or could it be I was prepared a lot because I kinda was. So that also factors in as who finds a exam difficult or easier than certain mock/Qbank etc.
Hi Mark, I was thinking about your comment about the 1 question per 13 pages and I would agree with what you laid out. However, that would be if we wanted to test for knowledge of every specific page. My question is, don't you think that at a certain point, whether the CFA tests from specific pages or not within a a topic area, there are still, with rough math, 16 questions per topic area assuming equal weighting. Surely, statistically you could still make the argument that adding another 4 questions to the topic area wouldn't give more information as to the candidates knowledge of the entire topic area? I would be curious to hear your thoughts. Cheers and thanks for the quick update!
Well, for example - 18 questions to cover 6 readings at quant - that is three per reading - three MCQ - not problem solving, not essay questions, just MCQ. No, I don't think that would tell me much about your true knowledge. Either they are all superficial - hence the higher MPS, or they are not, hence the belief that the questions are harder. It seems to me that preparing for 18 MCQ on 6 readings is a lot harder than if there were 100 MCQ - then I could let some things go - but with 18 - I can't take the chance.
@@MarkMeldrum Fair enough, I will defer to you in this area given your background in teaching/testing student knowledge. I do wonder though, we're assuming less questions bias scores downward, couldn't they also be biased upward to the same degree?
There is also another point, espicially last part of the exam is negatively effected by exaustion. after 200 question, the performance in the last 40 questions certainly drops off. Many countries like india and korea used to it but 6 hours of exam in a single day is tough. so lowering exam time may increase the focus of the candidates
You’re assuming the normal pass rate is 100% new candidates though and it’s not. So really on your math you would need the pass rate of first times even higher and make the pass rate of the differed even lower, correct?
Btw, Mark. On the Ethics section for L1 they removed the major 9 sections of GIPS and the conflicts when reporting with a Country Version of GIPS right? It seemed to me that something was missing at the end of the session. And they added a last reading called "applications of ethics" ?!? , don't we have a video about that on your web? Thanks! L1 candidate failed for the second time in Aug here! :(
I dont understand how can they say that the pandemic is affecting the scores as none of the candidates would write the exam if they are not fully prepared. I tried my level2 exam the 2nd time (Aug21) and I dint clear it. And seeing my score and the min passing mark has a small difference. I dont think CFA blaming the pandemic is right.. Aug 21 exam rate is 29% its really surprising.
Hi Mark, I think it has something to do with the demographic of candidates. I know the July and August exams were deferred in some countries such as Vietnam where the passing rate is (typically) higher.
Hi Mark. Thanks for your help throughout. With 20 days remaining for CFA L3 papers, we candidates are waiting for your video for the strategies to follow in the last 20 days for going through mocks and revision. It would really really help if you could please put a video on the same asap. Thanks
Appreciate these videos! As a data point, I'm someone who used your level 2 content to pass in May and then decided to take a break from CFA tests. I'll probably take level 3 in late 2022
Finishing 4th year honours spec. finance undergrad in Ontario, writing level 1 in Feb. 2022; have had friends comment on the recent pass rates. Thank you for the analysis!
I think you are missing a very obvious reason for high failure rate now compared to the paper based exams. Before it would have been super easy to cheat on the exams. The exact same exam was given to all time zones. A group of persons could take the exam in east asia put the answers in the calculator and send the answers to people writing in later time zones (who could put the answers in their calculators). Now every person gets a random test so this would not work any more. I remember writing the L1 in London in Dec 2018 and the ratio of non english speaking (as a first language) asians was extremely high compared to a normal day in London.
So unlike the written exam, the CBT is different for each candidate as I understand it. I don't believe they can adequately grade candidates because of this. The deferral excuse is nonsense, as most people taking level 2 would not have deferred..... December was level I.
Aww, sorry to hear about the loss of your friend Buddy. May he rest in peace. I already have had the tragedy of two of my dogs passing away previously, so I can fully empathise with the emotions that you’re probably going through due to his loss. I wish you well Professor.
