Each year, thousands of candidates take the CFA exams and I get a lot of emails from those with good outcomes and those with outcomes that were not so great. One thing always seems to separate the passing candidates from those in one of the fail bands, practice problems.
Now it felt like I did a million practice problems and problem sets every year that I took the exam but the average I get from most passing candidates seems to be around 900 problems. Yes, of the candidates that tell me they passed, the average number of practice problems completed is around 900. Of those in the fail bands, it seems the average is just under 500 problems.
Not a formal study and probably some biases in the data (you tell me which ones), but there is definitely a difference. It doesn’t take any leap of imagination to figure it out. Practice makes perfect, right? 900 practice problems is about five full exams worth of problems. If you can do this many practice problems, learning from your mistakes, then you should have picked up enough to get more than two-thirds on the actual exam. Of course, learning from your mistakes is important. Sitting there getting 30% on each round of practice problems without reviewing the answers isn’t going to help anyone, but that’s another topic.
Your challenge for the next exam!
My challenge to you is this, for the next exam, do 1,440 practice problems. That’s about 8 full-length tests and more than 1.5 times the average number reported to me by successful candidates. It may seem like a lot but its still less than half the number of practice problems in the Finquiz Web-based Test Banks. For the first four, do not worry too much about your score. Do the practice problems and review any incorrect answers. Make sure you review the questions that you guessed correctly as well because you may not be as lucky the next time around.
After your first four exams, start keeping track of your overall score and your percentage score within each topic area. Plan out your study schedule so you finish the last set of practice problems approximately two weeks before the exam.
If you finish the last problems with an average score of at least 75% over the last 360 questions (2 full exams), then you can relax and just do some maintenance studying up to the exam. I hesitate to talk about an alternative because if you have finished more than 1,400 problems and are not scoring very well then a few more hundred problems are probably not going to help.
You will want to check your average scores in the individual topic areas. If you are scoring less than 60% in any one area then you’ll need to work on it regardless of your overall score, but after 1,440 practice problems I have gotta believe that you are going to be golden for the exam.
I can’t give you any guarantees but if I wanted just one way to assure myself that I would pass the exam, it would be the 1,440 challenge. For you December testers, that’s about 40 problems a day with a week left to the exam. For June testers, you could start in February and do just 96 problems a week.
You will need to do the readings or at least read the study guides to be able to work the practice problems but achieving your 1,440 should be the goal.
That’s it. Seems easier when you can focus on just one goal rather than trying to elaborate on a lengthy and intricate study plan. Work those practice problems, meet your goal and you will not be disappointed!
‘til next time, happy studyin’
Joseph Hogue, CFA