What to Expect on CFA Exam Day

The day of the CFA exam is quickly approaching and I am getting questions from candidates about what to expect on that first Saturday in June. The CFA Institute has a page on its website that outlines the day’s structure but I thought I would walk you through it and provide some additional insight.

Your CFA Exam Day Begins

The day of the CFA exam is fairly straight-forward and simple. Most testing sites open their doors hours before registration begins. Getting to the testing facility early is a great opportunity to sit back and relax, study your flash cards or get to know some of the other candidates. Don’t overlook this networking opportunity!

Wear comfortable and layered clothes for the CFA exam. This is no time to impress people by wearing a three-piece suit. You do not know how warm it will be in the exam room. Many will have the air conditioner working and some will have it turned up too high. Dress in layers that can be removed depending on the inside temperature.

Before 8am, you will be allowed to check-in for the exam. This is basically just telling them you are there and presenting your identification. You will still need to present your admission ticket and ID to get into the testing room later.

At 8am, candidates will line up to enter the testing room and find their seats. You will leave all your personal belongings outside the testing room so either don’t bring anything valuable or leave it somewhere safe. Check the CFA Institute website for what you can and cannot take into the testing room.

The exam rules will be read at 8:30 am. It is extremely important that you pay attention and be patient. Do not open your exam book or do anything until told to do so. You will be given a candidate pledge and reminded of the CFA Institute’s strict code of ethics, after which you will sign the pledge.

At 9am, testing will begin. You are allowed to use the restroom while testing but it will still count against your time. Better to use the restroom before the exam begins, especially if you are a coffee drinker.

Do not ask the exam administrators any CFA-related questions. They have been hired to proctor the exams and most likely know nothing about the CFA other than how to conduct the exam.

If you finish the session early, you are allowed to leave the testing room. If you are still testing at 11:30am, you must stay until everyone is dismissed at noon.

The exam administrators will verbally notify the room when there are 30 minutes and 15 minutes remaining. In addition, they may note the time remaining on a whiteboard at 30 minute intervals.

The afternoon session is exactly like the morning session. You will begin the check-in at 1pm and the announcements will begin at 1:30pm. The test will begin at 2pm and go until 5pm.

Remember, you must sit for both morning and afternoon sessions for your exam to be valid. You are allowed to leave the test site for lunch but do not go too far. Eat a moderate-sized lunch so you are not too hungry but not too full for the afternoon session.

While you will want to talk to other candidates, resist the urge to talk about specific exam details. There are plenty of other things to talk about besides the exam and many candidates will be nervous enough without discussing it anyway.

By this time in your life, you have sat for countless exams. The CFA exam is really no different other than perhaps a little longer. The best thing you can do for exam day is try to relax. Staying calm and confident will actually help you recall the curriculum and pass the exam.

Being ready for CFA Exam Day Problems

We posted an article last November, what you need in your CFA Exam Emergency Preparedness which is definitely worth your time to look over. Most candidates have their basic exam resources ready but fail to have what-if resources available. It is unlikely that you’ll ever need any kind of emergency resources, I didn’t in the three years I took the exams, but that worst case, what-if scenario should be enough to convince you to take the time.

  • Admission tickets are now available on the CFA Institute page linked above. I always printed out two copies in case something happened to one of them.
  • Bring at least three or four pencils, all pre-sharpened. You probably won’t need more than one or two but it is nice to have them ready and not spend time sharpening.
  • Bring an extra calculator battery and screwdriver. Better yet, just bring an extra calculator to save yourself the time of changing out a battery.
  • Bring ear plugs just in case something threatens to distract you at the test site.

Don’t wait until the day before or even a few days before the CFA exam to plan your day. This day is too important and you cannot afford to let anything go wrong. Besides making sure you get to the exam as planned, putting everything together will really help to lower your stress level on the day of the big test. You are going to be nervous enough with the CFA exam itself, don’t add to it by worrying about logistics.

‘til next time, happy studyin’
Joseph Hogue, CFA

100 hours of CFA Study in 3 Weeks!

I took an informal survey of my CFA candidate contacts recently and was pretty happy with the outcome. Of the nine candidates I talked to, most had started studying for the 2015 CFA exams sometime between late January and early March. Candidates reported spending around 10 or 15 hours of studying and had just over 200 hours total on the CFA curriculum.

There were a few outliers in the group. One candidate had started studying in December and had been over the curriculum for more than 400 hours so far. She was very confident she wouldn’t have a problem on the exam.

Another candidate though was not as confident. He was one of those starting later and had not devoted as much time. He estimated that he had only spent about 150 hours studying and wasn’t quite through the entire curriculum yet.

Asked if I thought he could still pass, I told him that I would not feel confident going into the CFA exams without at least upwards of 250 hours of studying under my belt. To which he replied, “How do I get 100 hours of studying in just three weeks?”

CFA Study-thon Weeks One and Two

Studying 100 hours for the 2015 CFA exams, or even more, in three weeks may not be a problem for some candidates. If you can put other classes or responsibilities aside for a few weeks while you cram for the exams, then it doesn’t even amount to a full-time schedule.

Other candidates are not as fortunate. Devoting all your time to the CFA exam isn’t possible when you have a full-time job, a family or a full schedule of college courses.

But you can still get in another 100 hours of studying before the exams, picking up a ton of additional points and maybe putting you over the pass-no pass level.

Many candidates are expecting to take the last week before the exams off to study but would find it hard to take the whole three weeks off work. It is still possible to spend around four hours a day studying over six days a week. This would accumulate 48 hours of study time over the next two weeks.

I wouldn’t recommend you study all seven days of the week. You need time to relax and studying every single day is just going to leave you strained and not retaining information. I would take one of the weekend days off from studying. It may be tempting to take a workday off from studying but it is much more relaxing if you have one day where you don’t have to work or study. You’ll come back to your schedule much more recovered.

We’ve talked about ways to find more time to study for the CFA exams here on the blog before. With just a few weeks left, you will need to find more time and use that time as efficiently as possible.

Start your week with a full-length mock exam or a full set of questions, hitting every topic area from the curriculum. After working through the questions you missed, remember to review the ones where you got lucky guessing, you will review the percentage score in each topic to guide your studying over the week.

If you are consistently scoring less than 50% on any topic area, you will need to go back to the curriculum or summary sheets to review. Even on the non-core topics, scoring less than half of the points available will severely drag your overall score down.

For those topics in which you consistently score above 80%, I would review a one-page summary once or twice a week just to keep the material fresh.

In those topics where you are scoring between 50% and 80%, you will want to work out a schedule of flash cards, summary sheets and practice problems. Time spent on these three resources is about as effective and efficient as you are going to find. Use all three resources and cover a topic area each day, finishing up with a small set of practice problems. Do another set of practice problems on the following day, before you start the new topic area, to make sure you retained the information.

You might have to stretch it a little and get a little less sleep, but studying four hours a day should not be impossible for most people.

Your CFA Last Week Study Plan

Longtime readers of the blog will know that the last week before the exam was my favorite time of the year when I was a candidate. Not only is the excitement of the upcoming test like chugging a keg of coffee, but really devoting the week to the curriculum is a lot like being a professional analyst.

You are going to be spending around half your time as an analyst researching and reading information about your coverage universe. Really digging into the curriculum and studying for eight or ten hours a day is a lot like that and you may be surprised how excited you feel to get started every day.

I’ve covered study schedules for the last week before the CFA exam as well. There are really two key points you want to build into your schedule.

  • First, treat your study schedule like a job. If you can take the time off work for that last week then the CFA exam will become your job. Put in at least an eight-hour workday, stopping for a five minute break each hour and half an hour for lunch.
  • Second, don’t stay home to study. There are too many distractions at home and you need a more test-like environment. The public library is usually a good place to study since it is fairly quite but has some background noise that will simulate the actual exam noise.

Start each day with an hour or so of practice problems. Too many candidates put practice problems off until later in the day and end up either not having the time or are too tired to really do their best. Do a few sets of practice problems early to review the previous day’s information and to make sure you get them in. You retain much more information when you use active learnings strategies and practice problems are some of the best.

The rest of the day’s studying will be a lot like your previous schedule, just at a longer interval. Try hitting one or two topics in detail each day and review another one or two topics. You don’t necessarily have to review every study session over that last week but should cover at least 12 to 15 of the sessions.

If you studied for four hours a day, six days a week during the previous two weeks then you’ll need about 52 hours to meet your 100-hour study mark over the week to the exam. That amounts to just under nine hours a day over six days. These will be long days, especially towards the end of each day but you have to stay focused. Just keep telling yourself that it is only a few days to one of the biggest exams of your life.

This is only an example of what you might do to prepare for the 2015 CFA exams over the next three weeks. Your own plan may differ and you may find it easier to do more or less studying. Spending 300 hours isn’t a formal rule for the CFA exams, just an average we’ve seen across successful candidates. More important than the total time you spend is how well you do on practice and mock exams, so use them as a guide.

The countdown is on! Just 26 days left to the 2015 CFA Exams! Good Luck!

 

‘til next time, happy studyin’
Joseph Hogue, CFA

Last updated: October 27, 2017 at 1:43 am

Which Level of the CFA is Most Difficult?

Logging in to the CFA Program Candidates group on LinkedIn last week, the first post I saw was a common question I get from candidates. The candidate had been preparing for the Level 3 CFA exam and was wondering how it compared to the first two exams.

I get this question, or variations of it, quite a bit. Candidates want to know what they’re up against with the next exam and everyone wonders which is most difficult.

As usual, candidates on the LinkedIn Group came through for their peer and the post had 21 replies in about a week. I thought I would address the question here on the blog as well.

Are the CFA exams as easy as 1 -2 -3?

My own experience was that the first CFA exam actually seemed fairly easy. The second exam, living up to what I had heard from most other candidates, was much harder. The amount of formulas and detail you are expected to remember seems to increase by ten-fold from the first to the second exam. Unlike the third CFA exam, where you know some topics will appear in the morning section, you really have no idea what will be on the level 2 exam. This means you really need to spend a lot of time covering as much of the curriculum and in as much detail as possible.

I’ve heard a lot of candidates say that the level 3 CFA exam seemed more difficult than the second exam. I think this depends greatly on your preparation and comfort for the essay section of the exam. The afternoon section of the level 3 exam is no different than the second exam in format or difficulty (in my opinion). As for the morning essay section, I was actually surprised how easy it seemed after studying prior years’ exams.

You’re experience may be different but I would say the second exam was clearly the most difficult for me. The level 1 CFA exam was the second most difficult but only because you have no idea what to expect so you’ll need to study more to cover the uncertainty. The third exam can actually be relatively enjoyable if you study the prior years’ essays.

Do you need the same amount of studying on each CFA exam?

When it comes down to answering how much time is needed for each exam, it’s not really about time but about how you study. Each exam is a little different and requires a different approach to studying.

I spent way more time than was necessary studying for the first CFA exam, but then it is always hard to say how much is going to be enough. Between reading the curriculum, study notes and watching videos, I covered the material seven times and that’s not counting practice problems. When I got to the exam, I was surprised how easy and generalized the questions seemed. Knowing now that the CFA level 1 exam focuses on general concepts, I would suggest that you cover everything multiple times but don’t worry as much about the details. Understand the idea behind each LOS and broad concepts in each section.

The CFA level 2 exam is very different from the first. You will need to know deep details in the LOS to do some of the longer calculations and process. For this exam, I would concentrate on really mastering the more important topic areas. Using the topic weights for the exam, make sure you are scoring above 80% or higher on the most important topics. To get to this level of mastery, you might have to spend a little less time on other topics.

Responses from CFA level 3 candidates on the forum post were typical of what I usually hear and easily remedied with a smart adjustment to your study plans. More than a few of the candidates ran out of time or did really poorly on the morning essay section of the exam. While I thought the CFA level 3 exam was much easier than the second exam, it would have been impossible if I hadn’t spent so much time practicing prior years’ essay questions. This is something we talked about in last week’s post and absolutely critical to your success on the last CFA exam. If you spend your time studying the essay questions from prior exams, you can spend less total time than on other exams and still do well.

Last month ahead of the exam. You’re almost there!

‘til next time, happy studyin’
Joseph Hogue, CFA

Last updated: October 27, 2017 at 1:43 am