We’ve covered two of the top five reasons candidates fail in the previous weeks’ posts. I was going to finish the series up with this one but could not wait. I figured there are candidates studying for the December exam now and they need to read this before it’s too late to get back on track.
Frequent readers of the blog will recognize this common hurdle that candidates face. It is a problem all students face. Worst of all, it is not something you can overcome once and not worry about it again. You have to continuously watch for it to keep yourself on course.
The number one reason candidates do not pass the CFA exams is the difference between active and passive learning.
Passive learning is those activities where you do not participate but really just absorb the material through sensory perception. This includes reading, listening to a lecture or watching a video. Studies have shown that students remember only about 10% to 30% of the material through passive study.
Active learning, by contrast, is those activities where you engage the material in an interactive manner. This includes discussion, presentation and problem solving. Students are able to remember up to 90% of the material when they use active studying as part of their routine.
Just Reading the CFA Curriculum isn’t Going to Make It
Now that you know the difference, you are probably saying, “Oh crap, I am doing nothing but passive learning!” Don’t be too hard on yourself. Most school systems are built around passive learning (listening to lectures and reading textbooks) and students only grudgingly engage in active learning.
For me, it was only with the realization that the CFA exams were nowhere near as easy as most of my college curriculum and that passive learning was not going to cut it that I made the commitment to active learning. Its not the easier route, but would you rather spend a hundred hours reading to remember 10 hours of material (people typically remember about 10% of what they read) or would you rather work practice problems for about 11 hours to remember the same 10 hours worth of material?
Practice, Practice and yet more Practice for CFA Exam
1) Practice problems are the most obvious form of active learning. Make sure you do all the end-of-chapter questions and ‘blue-box’ examples in the CFA curriculum. These are going to be the most closely related to actual exam questions and are pretty close to the same level of difficulty.
The FinQuiz test bank includes almost 5,000 questions created directly from the curriculum and more than 500 item sets. It is a great supplement to the textbook questions and will help avoid boredom from doing the same questions multiple times.
Study groups for CFA Exam
2) Study groups are a good way to discuss and think about the material, but make sure you are efficiently spending your time on the curriculum and not talking about unrelated things that happened over the week. Flash cards are a good resource to use for study groups. You learn first by developing your own set of cards, then learn by working through other group member’s cards as well.
Level III candidates absolutely MUST work old essay questions.
3) The Institute releases the last three years’ essay questions with guideline answers. We worked through about 12 of these before the exam this year and are available on the blog. Do not let the essay section surprise you. It can be extremely easy or extremely difficult.
I first wrote about active versus passive learning in a post earlier but thought I would include it in this ‘top 5’ list because it trips up so many candidates. Click here for more information on active learning and how it can help you remember 90% of what you study.
‘Til next time, happy studyin’
Joseph Hogue, CFA
Last updated: July 28, 2016 at 4:02 am