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Asked: January 23, 20192019-01-23T18:06:18+05:30 2019-01-23T18:06:18+05:30

Which CFA level is the most difficult?

Which CFA level is the most difficult?
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  1. Arpan Chadha
    Arpan Chadha
    2021-07-07T13:51:41+05:30Added an answer on July 7, 2021

    Level 2 is more difficult than Level 1 and Level 3. A lot of information w.r.t. models and formulas need to be memorized which makes it a bit tricky because the formulas and models are closely related to each other for different financial instruments. Generally, people start studying 5 to 6 months bRead more

    Level 2 is more difficult than Level 1 and Level 3. A lot of information w.r.t. models and formulas need to be memorized which makes it a bit tricky because the formulas and models are closely related to each other for different financial instruments.

    Generally, people start studying 5 to 6 months before their CFA Level 2 exams to hold a sound grip on the concepts and perform in exams.

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  2. Anonymous
    Anonymous
    2022-01-06T06:42:01+05:30Added an answer on January 6, 2022

    The CFA level 2 questions require more concentration and attention, so in my experience, this level is the hardest. You must concentrate more on Practicing MCQs in level 2.  The testing format is more difficult in Level II. A multi-page vignette (or mini-case study) precedes six multiple-choice quesRead more

    The CFA level 2 questions require more concentration and attention, so in my experience, this level is the hardest. You must concentrate more on Practicing MCQs in level 2. 

    The testing format is more difficult in Level II. A multi-page vignette (or mini-case study) precedes six multiple-choice questions (MCQs) that demand knowledge of the vignette. Six-MCQ item sets have a time limit of 18 minutes, which necessitates greater focus and the capacity to remember pertinent details from the item set.

    The knowledge you have from Level I is expanded upon in several Level II topics. Therefore, Level II quantitative methods will be significantly harder for you if you did poorly on Level I Hypothesis testing (or skipped it entirely). This time around, any weak points or outright omissions will come back to haunt you.

    One moves from level 1’s understanding of the fundamentals of options to level 2’s binomial and Black-Scholes models to solve how options are priced. Most people find Level 2 to be daunting. The ideas are complicated and difficult to understand. Some people may require a few days to fully comprehend. To pass Level 2 tests, one needs to be committed as well as practice a lot.

    All the best!

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  3. Raghu Bartwal
    Raghu Bartwal
    2022-03-14T16:55:31+05:30Added an answer on March 14, 2022

     Every level is challenging in a different manner. In terms of the number of questions you must answer in the exam, Level 1 is challenging. The curriculum is not difficult, but it could be challenging for someone without a strong financial foundation. For instance, a lot of engineers say that LevelRead more

     Every level is challenging in a different manner.

    In terms of the number of questions you must answer in the exam, Level 1 is challenging. The curriculum is not difficult, but it could be challenging for someone without a strong financial foundation. For instance, a lot of engineers say that Level 1 is the most difficult. Once they gain a fundamental understanding, everything else looks simple to them.

    Level 2 is difficult in my opinion because it uses a new question format, goes further into specific curricular areas, and the MCQs demand much more attention and focus.

    Even though Level 3 is less challenging, you should still be ready for the specific question structure.

    In summary, I’d say that Level 2 is the most difficult CFA level.

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  4. Hitesh Nagi
    Hitesh Nagi
    2022-06-21T04:16:22+05:30Added an answer on June 21, 2022

    Hello, this question is actually quite subjective. You may find out from others that they believe levels 1 and 2 to be challenging, but in my judgment, level 3 is quite challenging. Constructed response questions appear in the morning session of Level 3 exams, while MCQ questions do so in the late aRead more

    Hello, this question is actually quite subjective. You may find out from others that they believe levels 1 and 2 to be challenging, but in my judgment, level 3 is quite challenging. Constructed response questions appear in the morning session of Level 3 exams, while MCQ questions do so in the late afternoon. This is the hardest part of CFA. You are required to write and explain some of the ideas from level 1 and level 2 exams during the AM session.

    Not only that, but you’ll also need to handle the challenging portfolio management questions like a professional. The AM exam will evaluate your practical problem-solving abilities in portfolio management even if there are only 7 subjects in Level 3 as opposed to the previous 10 subjects. This is because all 7 subjects are somehow interwoven with portfolio management.

    One must put in a lot of practice for this. In comparison to the other two levels, level 3 is seen as being more uninteresting because it requires reading about several concepts and topics—such as behavioral finance—without really solving any problems. It is the AM session with its “crafted response” that strains the students because one becomes accustomed to the MCQ-type exam pattern from Level 1. Therefore, out of the three levels in the CFA program, Level 3 is, in my opinion, the most difficult.

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  5. Anonymous
    Anonymous
    2022-10-05T15:35:00+05:30Added an answer on October 5, 2022

    Level 2 includes some difficult-to-understand, heavily formulaic, and numerical concepts. I, along with many others, believe that level 2 is the hardest. Level 3 calls for greater subjectivity and comprehension of investor psychology and behavior. It includes theories, and only 50% of the exam's queRead more

    Level 2 includes some difficult-to-understand, heavily formulaic, and numerical concepts. I, along with many others, believe that level 2 is the hardest.

    Level 3 calls for greater subjectivity and comprehension of investor psychology and behavior. It includes theories, and only 50% of the exam’s questions are of the multiple-choice variety. However, the topics themselves are not particularly complex or formulaic. This made it simpler for me to understand.

    In general, it is believed that if a candidate can pass level 2, they can also pass level 3.

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  6. Daksh Deshwal
    Daksh Deshwal
    2023-04-21T16:54:09+05:30Added an answer on April 21, 2023

    This is a subjective query since, while level 1 may seem simple to me, you might find it challenging. Everything varies greatly from person to person. Thus, my experience might not be typical of others'. But here's how I see it: The most challenging part of Level 1 was getting used to the format. ThRead more

    This is a subjective query since, while level 1 may seem simple to me, you might find it challenging. Everything varies greatly from person to person. Thus, my experience might not be typical of others’. But here’s how I see it:

    The most challenging part of Level 1 was getting used to the format. The subject matter is quite wide yet not particularly challenging. In essence, the CFA is evaluating foundational ideas here.

    Level 2 is completely the reverse. The subject matter is not only extensive but also complex. L2 is typically regarded as the hardest exam of the three: This line of thinking is one that I support.

    Comparatively, Level 3 was simpler. The new format for the AM segment of Level 3, which focuses on creating an investor policy statement among other things, is the most challenging aspect of Level 3. Because of my education and prior work experience, I was more comfortable with level 3, which made it simpler for me.

    Once more, your background plays a big role in this. You’ll probably claim that Level 2 or Level 3 are harder, and if I had to guess, I’d say that L2 is the hardest according to the majority of CFA charter holders.

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