How difficult is fixed income in CFA Level 1?
CFA Level 1 Fixed Income is considered one of the more difficult topics on the exam, and for most candidates, it is also one of the least familiar. Fixed income securities are typically more abstract than equity investments.
Hardest topics by CFA Level
Generally, our research shows that candidates' CFA Level 1 hardest topics are Financial Statement Analysis, Fixed Income, Quantitative Methods, Derivatives and Economics.
How Much of the CFA Exam Tests Fixed Income? The Fixed Income topic represents 11%-14% of the Level I exam, which is approximately 19-25 questions. This topic is tested in the afternoon session, within the Assets Functional Area, alongside Equity Investments, Derivatives, and Alternative Investments.
| CFA Exam Topics | 2024 Level 1 Weight (MIN-MAX) |
|---|---|
| Equity Investments (EI) | 11-14% |
| Fixed Income (FI) | 11-14% |
| Derivatives (DER) | 5-8% |
| Alternative Investments (AI) | 7-10% |
- Equity Investments (EI)
- Corporate Issuers (CI)
- Portfolio Management (PM)
Very few candidates pass all three CFA exams on their first attempt. CFA Institute estimates it takes the average successful candidate four years to complete the CFA Program. So failing one level, if not two, makes you an average candidate.
Historically, around 43% of test-takers pass the Level 1 exam on average. Recently, the pass rates have been much lower than that. Some people take the test numerous times before they are successful. If you fail the CFA Exam on your first or second attempt, you may feel ashamed, confused, and defeated.
CFA vs CPA Exam difficulty
Both are challenging and require gaining skills and knowledge in complex topics. However, the CPA Exam generally requires less studying - around 80 to 120 hours per section compared to 300 hours per section of the CFA Exam, and the CPA Exam also has a higher pass rate.
- Define the key concepts of the basic fixed income instrument – bonds.
- Explain who buys bonds, who issues bonds, and the bond market.
- Examine the concepts of yield, coupon, and day count.
- Discuss the yield curve, credit spreads, and what they represent.
The demand for money refers to the amount of wealth that households and firms in an economy choose to hold in the form of money, which includes notes and coins in circulation, as well as very liquid bank deposits.
What percentile is good for CFA Level 1?
The score needed to pass the exam is approximately 70%. I observed that students who scored near 70 in all subjects passed. There were some cases where a person missed 70 in one subject but still passed. The score required for the 90th percentile is around 85%.
| Mock CFA Exam Level | Target Mock CFA Exam Score |
|---|---|
| Level I | 75% or higher |
| Level II | 70% or higher |
| Level III | 65% or higher |
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.
Here's what you should know about pass rates on the CFA: Average pass rates tend to fluctuate. Level 1 pass rates have hovered around 37% Level 2 pass rates have been around 45%
The average pass rate for the CFA Level 1 is only 41%. For Level 2, you're looking at a passage rate of 45%. And Level 3 is not much easier at 52%. Overall, less than 11% of all candidates pass all three levels of the exam and earn their charter.
Many candidates handle their studying exclusively in short, one-hour chunks then do poorly on the exam because they are not prepared for the level of mental fatigue. Further, mock exams force you to answer problems across the curriculum instead of only looking at specific sections.
If you retake any level of the CFA exam, you will be charged the same examination fee. The fee will range from $700 to $1,450, depending on when you register to retake the exam. In addition, if you used a CFA exam preparation software solution, you may be charged a fee if you have to extend its use.
The answer is yes; Schweser is good for CFA Level 1. However, it is essential to note that Schweser notes should be used as a supplement and not as a replacement for the CFA Institute books.
The problems will be either you didn't cover the entire curriculum and, as a result, had gaps in your knowledge, or you did not have time to properly utilize your CFA practice questions and mock exams. The longer you can have to review and practice, the greater the chances of success.
How many times can you retake the CFA? Candidates have six maximum attempts to pass each level of the CFA exam, and each level can be attempted only twice per year (at least six months apart).
Why is CFA so difficult?
The CFA exams test your knowledge in four areas: ethics and professional standards, investment tools, asset analysis and valuation, and portfolio management/wealth planning. The tricky part is that all these areas are interdependent, and you need to know about all of them to pass the exam.
The math involved in the CFA program is not very advanced. Most of the math is in: Quantitative methods (probability, time series analysis, hypothesis testing, correlations, mean/variance analysis, cash flows, etc).
| CFA Exam Candidates Dwindle | ||
|---|---|---|
| Level I | Level II | |
| 2022 | 82,435 | 40,120 |
| 2021 | 127,733 | 61,678 |
| 2020 | 26,212 | 18,136 |
CFA Calculator Policy
The CFA Institute (CFAI) is very straightforward when it comes to its calculator policy for the CFA exam; only two types of calculators are permitted: Hewlett-Packard 12C (including the HP 12C Platinum, 12C Platinum 25th anniversary edition, 12C 30th anniversary edition, and HP 12C Prestige)
CFA vs CPA Salary: Everything You Need to Know. The average salary for a CFA charterholder ranges anywhere from $51,000 to over $274,000, while CPAs may earn an annual salary ranging from $50,000 to upwards of $240,000.
