The Black-Scholes-Merton (BSM) model is not typically featured in the CFA Level 1 curriculum, which focuses more on the foundational concepts of options and basic pricing, such as the binomial model, rather than complex formula derivations. The BSM model and its intensive valuation calculations are primarily covered in Level 2.
CFA Level II Exam Material is More Complex
For example, swap valuation, CDS valuation, binomial options valuation, and Black–Scholes–Merton can all be mind-boggling topics.
The CFA Level 1 Exam tests knowledge in 10 different sections, including ethical and professional standards, quantitative methods, economics, portfolio management, and asset classes.
The CFA Level 1 passing score is not fixed every year, but it usually stays between 65% and 70%. CFA Institute does not publish an official cut-off, but this range is considered the minimum benchmark to pass.
However, let's put things into perspective: the CFA Level 1 exam is not a math test. The CFA Institute has made it clear that calculations will account for no more than 30% of the questions on the exam. To put it in numbers, that's a maximum of 54 out of the 180 questions.
Is CFA tougher than CA? A: The CFA and CA (Chartered Accountant) qualifications have different focuses and challenges. While both are demanding, many find CA to be more rigorous due to its extensive practical training and exams.
Listing CFA Level One in the education section of the resume
Write "Chartered Financial Analyst." Include a hyphen and "Passed Level 1" next to it with the year you earned the qualification.
3 months can be enough if you're disciplined and can actually put in 20–30 hrs a week. With a math/stats background you'll likely move faster through Quant and FI, so the key is drilling CFAI QBank, EOCs, and mocks once you cover the readings.
Financial Statement Analysis, or FSA, is often regarded by students to be the most challenging topic in CFA Level 1, not just because of the subject's difficulty but also because of how heavily weighted it is on the exam (13–17%).
Neither the CFA nor the MBA is universally "better"; their value depends on your career goals, with the CFA offering deep investment expertise for roles like portfolio management and the MBA providing broad business skills for leadership and strategy, often through strong networking. The CFA is ideal for specialized finance careers (research, asset management) and is globally recognized for technical depth, while an MBA offers flexibility across industries (consulting, general management) and often higher senior leadership representation, with top school prestige being crucial.
On the final exam, students who slept ≥8.0 hours performed better than students who opted-out or slept ≤7.9 hours, even after controlling for pre-final grades. The Eight Hour Sleep Challenge provides proof of principle that many students can maintain optimal sleep while studying, without sacrificing test performance.
The Black-Scholes option pricing model (also called the Black and Scholes Model, the Black-Scholes-Merton Model, or simply “BSM”) is one of the most commonly used methods to value stock options and is generally accepted as the standard across all option-pricing models.
CFA Level 2 Difficulty
The Level 2 test is widely considered to be the most difficult of the three exams. The biggest change when moving from Level 1 to Level 2 is the questions taking the form of what is referred to as “item sets.”
qualification in the USA education system, CFA Level I can be considered broadly comparable to completion of Year 3 of a 4-year US Bachelor degree.
For example, once you have earned your CFA Level I and are preparing for the Level II exam, you should state, "Earned CFA Level I; CFA Level II Candidate (Exam Date: Dec. 2023)." You may not use the CFA letters after your name until you have passed all three exams and have earned official CFA Charterholder status.
Yes, you can get a job once you clear CFA Level 1, as it shows your strong financial reporting, quantitative, corporate finance, and income-based skills to employers.
CFA Exams Pass Rates
The CFA exams are perhaps the most challenging exams out there. They are often referred to as “bar none” the toughest exams—even harder than medical school or law school exams—with pass rates that hover around 50% and were much lower during the recent pandemic.
All Big 4 accountancy firms – Deloitte, PwC, EY, and KPMG – are active recruiters of ACCA-affiliated accountants. Choice often depends on your interest area: audit, consulting, tax, or advisory.
Here are the hardest CFA Level 1 topics to watch out for: