Fixed Income, Derivatives, and Financial Statement Analysis (FSA) are widely considered the toughest subjects across all three levels of the CFA program. Fixed Income is consistently difficult, particularly with duration, while Derivatives and FSA are frequently cited for their complexity and high formula count.
Fixed income is generally regarded as one of the most difficult CFA subjects in CFA studies. Its difficulty lies in grasping bond features, pricing models, yield computation, and sensitivity to changes in interest rates.
Fixed Income: Consistently one of the hardest topics at all three levels, fixed income does not get any easier. Understanding duration and duration measures is critical at all three levels, but especially at Level III. If you do not know this stuff by heart, it's hard to see how one can successfully clear Level III.
Most candidates find Financial Statement Analysis and Fixed Income to be the most challenging CFA Level 1 subjects based on the number and difficulty of questions. Quant Methods is also challenging for candidates from a non-quant background.
Level I of the CFA Program usually has the lowest pass rate which could imply it's the most difficult exam in the program. However, this will not apply to every candidate because each person will have different strengths and weaknesses.
The 3 most important level 1 CFA exam topics are:
Most difficult areas: governmental accounting, bonds, pensions, leases, deferred taxes, consolidations, revenue recognition, depreciation, accruals/deferrals, and cash flows. The key to success is to prioritize high-weight, high-difficulty topics; revisit them often in your study rotation.
Three months can be enough time, but typically it takes a candidate at least six months to prepare for the CFA Level 2 exam.
Since 2014, the historical CFA pass rates for: Level 1 ranges from 22%-49%, with a 11-year average of 41%; Level 2 ranges from 29%-59%, with a 11-year average of 45%; Level 3 ranges from 39%-56%, with a 11-year average of 50%.
CFA is one of the toughest courses in the field of finance. To clear every level, the candidate needs to dedicate at least 300 hours of learning. MBA, on the other hand, is much easier as compared to CFA.
Hardest topics by CFA Level
Meanwhile, CFA Level 2 most difficult topics are typically Financial Statement Analysis, Portfolio Management, Ethics and Derivatives. Finally, CFA Level 3 hardest topics are Fixed Income, Ethics, Equity Investments, Alternative Investments and Derivatives.
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.
No, studying for any CFA exam for less than 6 months will not give you enough time to adequately prepare unless you have a relevant background in the curriculum. According to CFA Institute, candidates study on average 348 hours for the Level I exam, 364 hours for the Level II exam, and 365 hours for the Level III exam.
If you are currently a candidate in the CFA Program:
Include your participation in the CFA Program in the education section of your resume. (For example: “CFA® Program participant, CFA Institute.”) You may also list the levels completed. (For example: “Completed Level I in 2020.”)
Many CFA charterholders consider the Level 3 CFA Exam the most difficult because of the time and thought needed to answer the constructed responses successfully. While the typical Level 3 CFA Exam pass rates are the highest of the CFA Exams, only around 56% of CFA candidates pass the exam.
Common Graduation Options for CFA Aspirants
Offers a strong base in accounting and corporate law, which helps with CFA's financial reporting section. However, it often lacks depth in investment-specific topics and quantitative analysis.
The one thing standing between you and success on the Level I CFA Program exam is hard work. CFA Institute recommends you aim to spend at least 300 hours preparing for the Level I exam.
1. USMLE (United States Medical Licensing Examination)
Here's a list of contries with the toughest education system. 1-China 2-Russia 3-Korea 4-India 5-Singapore 6-Hongkong 8-Italy 9-Poland 10-Czech Do you think this list is incomplete?
List of Easiest Exams in the World