Financial professional

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Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2011 Hello!

May I request someone to brief me on "Chartered Financial Analyst" course.

And could you let me know on how best this course would suite for a working techie and in what manner this course needs to be pursued?

Thanks in advance!

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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02 August 2011 The basic requirements for participation in the CFA Program include holding or being in the final year of a university degree (or equivalent as assessed by CFA Institute), or having four years of qualified, professional work experience in an investment decision-making process. To obtain the charter, however, a candidate must have completed a university degree (or equivalent) and four years of qualified, professional work experience, in addition to passing the three exams that test the academic portion of the CFA program.[1]
Year Level 1 Level 2 Level 3
2011 39% 43%
2010 42%/36% 39% 46%
2009 46%/34% 41% 49%
2008 35% 46% 53%
2007 39% 40% 50%
2006 40% 48% 76%
2005 35% 56% 55%
2004 35% 32% 64%
2003 41% 47% 68%
2002 44% 47% 58%
Weighted Mean 39.7% 44% 57.7%
All three levels have a strong emphasis on ethics. The material differences among the exams are:
The Level I study program emphasizes tools and inputs, and includes an introduction to asset valuation, financial reporting and analysis, and portfolio management techniques.
The Level II study program emphasizes asset valuation, and includes applications of the tools and inputs (including economics, financial reporting and analysis, and quantitative methods) in asset valuation.
The Level III study program emphasizes portfolio management, and includes strategies for applying the tools, inputs, and asset valuation models in managing equity, fixed income, and derivative investments for individuals and institutions.
Candidates generally take one exam per year over three years (assuming a pass on the first attempt). Fees as of December 2009 for each exam range from $710 to $955, depending on the date on which the candidate registers to take the exam, plus an additional $400 to $480 for program enrollment for new members. Exams are challenging, with only 38% passing the Level I, 39% passing Level II, and 46% passing Level III exam in June 2010.[5][6] In December 2010, the CFA exam pass rate for Level I was 36% [7] In 2006, Europe achieved the highest average pass rate for the Level I, II and III of the exam with an overall success rate of 57% of candidates versus 54% for the USA and 49% in Asia and Pacific. It should be noted that level 2 and 3 pass rates apply to candidates that must have already passed the prior level. Roughly 11% of all candidates who sit for the level 1 test, go on to pass level 3 and achieve chartered status.
All three exams are administered on paper on a single day; the Level I exam is administered twice a year (usually the first weekend of June and December). The Level II and III exams are administered once a year, usually the first weekend of June. Each exam consists of two three-hour sessions. Level I has 240 independent, multiple-choice questions - all information required to answer the question is contained in the question. Level II has 120 multiple-choice questions, organized as 20 six-question item sets, each set having its own vignette of facts. To answer each question, the candidate must refer to the vignette as there is insufficient information in the question stem. Level III consists of a session of constructive response, essay-type questions, and a session of 10 six-question item sets as in the Level II exam. On the multiple-choice/item set sections, there is no penalty for wrong answers.
Candidates who have taken the exam receive a score report that is intended to be fairly unspecific: there is no overall score for the test, only a Pass/Fail result, and a range within which his or her performance for each topic area falls: below 50%, between 50% and 70%, and above 70%. Additionally, failing candidates are informed of their decile rank within the body of failing candidates. The passing grade for the exams had been defined as 70% of the top percentage of exam papers until 1989; since then, the grading method is not explicitly published[3] and the minimum passing score is set by the Board of Governors after each exam. The Board of Governors reviews the results of the standard setting process and input from psychometricians.
Standard setting is a process that defines the passing score of the exam. The CFA exam utilizes the modified Angoff method which is a commonly-used approach to setting standards for certification and licensure examinations. Subject matter experts review the exam and recommend a minimum passing score for the "just-qualified candidate". The minimum passing scores are presented to the Board of Governors in a report. The Board of Governors is not bound by this recommendation, but does recognize it as very important information.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2011 Thank you very much indeed, for the comprehensive information. I'm a working professional (for around 4 years now. And I do not belong finance sector rather to science sector). Could you please advise me if I can take up this program? If yes, could you please confirm me on the procedure/approach for it (your suggestions/inputs in the way I can proceed with this program).

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