CA EXAM TIPS:

Passing the CA exam is not as difficult as it is made out to be. Several students clear it in the first attempt and even secure ranks. Why, then, are others unable to crack it? The reasons are several.

Every student knows the importance of studying. However at times studying can be tedious and boring. Studying is not usually a favorite past time of most students, although there are those who enjoy it. It is however a necessary part of academic life whether you are in elementary school, high school or university.

Studying is the key to success. Every student knows this but with all the enticements and entertainment available studying can easily fall by the wayside and for most of us that means failure. Studying is therefore something that students must find the discipline to do.

The very first step for exam is to decide, whether to go for one or both the groups together. I mean, I think its on every individual to think wisely and not just intellectually or so called “PRACTICALLY”. Whether you are a poor student, an average student, or a good student, you can become a better student.

At present you may believe that the more time you spent and the harder you study the better student you will become. It is not so because the most important thing is to use effective study skills.

Every CA Student remains in a dilemma as to whether to appear for one Group or both the group.

It is only a matter of mental decision. When people have little work to do they stretch it out to fill up the large amount of time at their disposal? Thus it’s always better to appear for both groups.

Do you make most of your time? If you would introspect yourself honestly certainly the answer would be” No”.

Therefore get maximum time out of all the time you invest in studying. The real art in studying is to achieve a great deal in a short span of time. Give yourself the deadlines for each task and do your best to stick to it.

And if someone asks me that how much time should be given to one group or both groups. Then I would say that for PCE, even 2.5-3 months are more than enough to get clear and secure desired marks. While for FINALS, both group require utmost 3.5 months for an average student (who hardly exists in FINALS, all are converted in above average student).

PREPARING FOR EXAMS

As such, how difficult CA is or say what is the level of studies here, everyone knows, so don’t want to discuss about the level of sincerity requires one. Its expected from every student that he should dedicate his time to studies atleast in exam time. What we do during our academic career at tuition classes or in colleges or in institutions is tested at exams, it is the time when everyone can do his/her best, not to prove anyone else but to himself/herself.

Medium of instruction

Those who study in regional-medium schools, often complaint that they face a lot of difficulty in comprehending the subject. While I consider it as a bull-sh*tt. Sorry, but the rankers at 10th or 12th or any colleges or even in CA are these students only. Its their desire to study without any complaints and regrets. If a bunch of such students can do, why can’t all?

I know, there can be difficulties in understanding few concepts, but it should never be because of language problem. If one argues that he/she didn’t get some topic or some point due to negligence towards the topic or difficulty of topic, that is valid. But not understanding the concept merely on the basis of language problem, should not happen.

Though ICAI provides facility of writing paper in HINDI, but I would suggest everyone to write it in ENGLISH only. If you won’t do this time, you will never get diverted to this global language.

Exposure

Another factor is the exposure to the business world, terminologies, and so on. Students from rural and semi-urban areas face difficulty in understanding the subject due to inadequate exposure. Another drawback could be the lack of access to reading material, non-availability of textbooks, Internet facilities, so on. While these students are sincere, they may lack the right guidance. Students can overcome the fear of the examination by following a regular and systematic study routine.

Moreover, they should try to use internet (now that is possible in every village) and get books downloaded, printed or get the same through any other such source.

General study

If possible then start preparing for the examination immediately on joining the course. Study regularly and conscientiously. It does not matter how many hours you study, but how much you understand. Qualitative study is important.

Keep track of the latest updates in all the subjects: accounting standards (new standards, revision of old ones, interpretations, etc.) auditing and assurance standards, amendments to company law and other laws, Finance Act and Income-Tax law. Contribute and subscribe to a good business newspaper. Essays on capital markets, tax matters and other subjects will be helpful.

There are few qualities inside you which will leads to you your goals. Some were success and some were failure. Other interesting factors that success continues to be success. But all the failures not continued to be failure. That is the wise saying that the failures are the stepping stone for the success...

Firstly, you have a strong believe inside (Burning desire) that things will be happen and do the hard work for achieving the same. This is called the self confidence.

When you have thrust for knowledge, no doubt, a teacher which is sleeping inside you will present. I really hope that god had given a wonderful instrument which is known as Brain.

Fortunately, there are many resources are present with you in the form of good reference book and coaching for the entire subject. If you fail, think, why do you fails?

Did you tried to seek the answer? It is simple; you had traveled the route of failure. Everybody start their journey towards the success. But some got diverted and traveling the route and the ultimately reaching towards Failures...

If you are a positive thinker, you can’t think that ICAI had done manipulation in the result and standard deduction of the mark.

Simply if your handwriting is bad, blaming for the pen. What an idea Jee!

All the human being was created by the lord with equal capacities. But someone success and others failed.

Assessment of strength and weakness..

When you joining the course, every thing is Blank. How to study? Which book to follow? Etc. Take your past schooling days and plus 2  stages.

You may be master in solving mathematical problems or Accountancy problems but find very difficult to memories the history like theory papers.(Left brain is strong and Right brain is weak)

The above categories can score good mark with MAFA, Cost, Accounts, But poor performance in the theory section may be make the difficulties

There is reverse combination. Good with memorizing theory section but  find difficulties with Maths papers or accounts papers (Right is powerful and Left is weak)

These categories will find some degree of Difficulties for studying and scoring MAFA, Cost management and accounts papers. This will leads to failure of the Problems papers like cost management and MAFA and will loose.

Some were so good with Mathematical papers as well as problems papers (Both are balanced)

The above categories of the students were so ideal for writing both group papers

Some were average students(Neither powerful nor weak)

Getting Minimum marks for the entire subject. But in the CA course, you may be clearing all the papers but fail for want of aggregate only

Some others were below average categories Also.

These categories will fail forever...

But All the above categories can Success the CA course.

Understand one thing clearly, all the above categories can success the CA course. First step towards this is believe strongly that you can success the course.

Secondly correct the weakness which i had specified above. If you have necessity, then, you will be an innovator.

If you weak in mathematic paper, it may be a difficulties for solving the cost , accounts and MAFA papers. Don’t waste the time further. Buy good book  and start the preparation from the grass root level...

Pick a smallest and easiest component and find the additional time for the toughest subject...

For clearing the cost management papers, you must be conceptually strong. If you see the problems , try to understand what is the information is available and what information is missing or Hidden and what is required to be find to reach the solution.

All the problems of the cost management were based on a particular Concept. This may be explicit or implicit in the book. Unfortunately, our ICAI module is  good but not structured... This was emerged the need for good reference book too.

If you determine to overcome the weakness you may be find the way to success. But unfortunately those who had failed is not in a position for the reason for failure.

If you had failed in cost and MAFA papers, it indicates you need to improve for conceptual aspects and problem solving aspect. Both are inter inked aspect. Try to learn the concept and then only solve the problems and that too without depending the solution to the extent possible..

IF you are weak in the theory papers

There are two type of categories

First categories

Students are trying to Mug up the theories without understanding the logic behind that. If a Ditto Question is set in the CA exam. You can simply crack the good mark.

What is the wrong with you?

You are not able to present the content of given questions in the exam.

What is the difference between a CA course and graduation course?

In the CA course Application oriented and practical questions such as true or false is set. But for graduation course ditto course were set.

See some scoring good mark in their graduation was fails frequently for this course alone!

What is wrong with you?

Firstly, Not understanding the logic behind the theory papers. Logic will be present if and only if you thing for it.

Second, understand the requirement of question and start writing relevant point with heading and sub heading.

For Audit, Law, DT , IDT, inter linking  method is need to be adopted. One AAS may be having application in much area. Take the same and arrange it and present it in a better way of you...

Sure you can crack the same...

Note is required for the entire theory subject....

Read the matter

Try to understand it

Document the main point with heading and sub heading

Revise the same in a good time interval Present the same in your way to the exam point of view...Those who are average and below...

You can also crack the course...But Believe strongly that you can crack the CA course , understand what is your strength and weakness. Rectify the weakness as specified above

Skills required for CA Exam...Dont miss it out

CA exam is a professional exam and the question will be set with a view to measure your knew ledges. you must understand few tips for writing your exam effectively.

Time management skills

This is one of the important quality that a student must possess. Allocating your total time to total marks. This is nothing but total time is divided by total marks.

Now a days some question papers were lengthy and students find it difficult to complete it within the time. ( Costing and Fm , Direct tax ).In this scenario, time mangement skill is warranted.

A good and proper time management skills will help you to find time for writing all the question

Care should be taken from your part for not spoiling the quality of the answer for sake of the time.

If you not able to complete a particular answer within the allocated time, better you can switch to the other confident questions at the disposal.

Example

Suppose there are 5 questions @ 20 mark each, you can allocate 36 minute for one 20 mark question section.

Suppose there are 5 sub questions of 4 marks each in one particular section of 20 marks then you can allocate a maximum time of 7.2 minute for one 4 mark question.

Make a prioritize the questions

Select more confident question to answer first and the unknown or difficult questions shall be taken to write during last 30 or one hour before your exam..This will boost up your confidence and you can write better.

Good presentation

This is the most important skill that a CA student need to adhered to during the time of your exam. Better presented questions will fetch good impression in the mind of examiner as he need not wander in an essay type of answer.

Do the following

Try to write the answer in point wise with heading and sub heading

Try to present the base content of the concepts in your way

Please give numbers for each of your point

Try to avoid irrelevant point as it will create a negative impact and will prove harm for you

If there is two views for a particular answer, better give the two views in the form of notes

If a particular questions have an implication in more than one area, adopt inter linking concept

Example

Special provision for computing profit and gains from business and provison

Section 44 AD Computing the profit and gains from Civil construction

Eligible Business (Heading)

1. Civil construction

2. Supply of labour for civil construction

Deemed income

1.Sum equal to 8 % of gross receipts paid or payable to the assessee on account of such business carried on by him during the previous year

2.A sum higher than above as may be declared by the assessee in his Return of income.

Notes

1. Provision of section 28 to 43 c shall not be contrary contained

2. Provision of sec 44 AA and 44 AB in case of above business

What was the advantage of above method, the examiner will have a better impression over you because no need of wandering of relevant point in essay type answer set up.

Try to write your way to the concept will fetch you extra marks. If you taking care the above aspect then no one can deny you for clearing the CA exam

Tips for Studying for the CFA Exam

The CFA Program is a self-study, distance learning-based program that takes a generalist approach to investment analysis and portfolio management and emphasizes the highest ethical and professional standards.

The goal of the Candidate Body of Knowledge (CBOK) and the assigned CFA curriculum readings is to educate candidates on topics of importance to the investment profession. The CFA Institute strongly believes that you will gain a better understanding of a topic by reading the curriculum materials than by reading a summary of the reading. Reading only a summary risks fragmenting the topic and missing key points.

The CFA examination measures your degree of understanding of the assigned curriculum. This document provides tips for studying for the CFA exams (in general, as well as for each of the three examination levels) and tips that might improve your performance on exam day. This document is organized into several sections:

1. General Tips for Studying for the CFA® Examinations

2. Tips for Taking the Level I Multiple-Choice Examinations

3. Tips for Taking the Levels II and III Item Set Examinations

4. Tips for Taking the Level III Essay Examinations

5. Myths about the CFA Examinations

6. A Final Word

If you are taking the Level I examination, you might skip sections 3 and 4. If you are taking the Level II examination, you might skip section 4.

1. General Tips for Studying for the CFA® Examinations

The tips in this section are general advice for all three levels of the CFA examination. More specific tips are given below for taking the Level I multiple-choice examinations, the Level II and III item set examinations, and the Level III essay examinations.

• There is no secret to success on the CFA examinations:

o Preparation

1. • Minimum of 250 hours per level

2. • Read and study the material

3. • Focus on LOS – a CFA Institute contract with candidate

4. • Review

o Confidence

• Mindset – 70% is a fine score

• 100% is not the goal – passing is the goal

• Organize your study well in advance of the examination. Divide the material into manageable units (for example, by Study Session) and then allocate a certain number of hours per day or week to studying. Then stick with it! A common study plan is to complete one study session per week.

• Read the 2009 CFA Level I (or II or III) Study Guide, which has a wealth of information and will help you organize your study plans. For Level I candidates, this information also appears in the front of Volume I of the custom curriculum.

• Save the candidate web site and refer to it often: http://www.cfainstitute.org/canservices/. This site will link you to several frequently used candidate services.

• Purchase your curriculum early.

• If you have not yet purchased the calculator you will use for the examination (http://www.cfainstitute.org/cfaprogram/calculatorpolicy.html), it is strongly encouraged to do so. Learn your calculator completely. Valuable time will be wasted if you have to refer to the keystroke instructions during the examination.

• Experts agree that more learning takes place when study is spread out over several sessions. In other words, people generally learn more from six two-hour sessions than from one 12- hour session. Structure your study program so that your time is used effectively.

• When developing your schedule, make sure to leave time for relaxation so that you don’t get overwhelmed.

• Before approaching an assigned reading, review the reading-specific Learning Outcome Statements (LOS). These learning outcomes indicate what you should be able to accomplish after studying that reading. When you have finished the reading, close the book and

determine whether you can accomplish the action specified by the LOS.

• LOS are written to help focus your study; they are not intended to signal that candidates should only read the specific paragraphs supporting that LOS. Think of some good books you have read. Would you have attained the same level of understanding from a summary? Although summaries can be useful in reviews, we urge you not to consider summaries as substitutes for the source materials.

• Create your own notes, flashcards, and practice questions. The time spent writing concepts on paper or into your computer will help you remember them.

• Don’t try to guess what topics or areas will be tested—you may guess wrong. If something is covered in a LOS, it may very well be on the examination.

• Pay attention to the specific command words. In the LOS, command words indicate the depth of understanding required. Command words are defined in the Study Guides and in the Level I custom curriculum.

• In the ethics section for all three levels of the CFA examination, candidates are not required to know the number associated with a particular Standard.

• Each exam question is linked to one or more LOS. The language, terminology, and symbols used in the questions are consistent with the LOS and the candidate readings.

• The examination is faithful to the CFA Institute assigned curriculum. Questions are carefully reviewed to guarantee adherence to the curriculum, and further reviewed to make sure theexaminations are free from biases related to language, business practices, and cultural issues.

• If possible, spend the final three weeks to a month before the examination reviewing the assigned readings and your notes and answering sample questions (the online sample examinations will be helpful). This gives you time to go back and review your weaker areas.

• CFA Institute has developed online sample examinations for the multiple-choice exams at Level I and the item set exams at Level II and Level III.

o The sample examinations were developed in response to candidate demand, and theircontent, format, and style are reflective of the upcoming live examinations. They aretimed, and provide immediate feedback on the correct answer and its explanation, page references in the assigned curriculum, and the LOS reference. The online sampleexaminations are available at: http://www.cfainstitute.org/cfaprogram/onlinesampleexams.html.

o CFA Institute publishes Level III structured response (essay) questions and answers from the past three examinations as Book 5 of the Level III curriculum readings.

• There are two popular strategies for taking the examination. One strategy is to take the examination questions in order, beginning with question 1 and going straight through to the end. The second strategy is to begin the examination with the topic area where you feel most confident in your knowledge. This can help you build confidence, which is an important factor on any examination. In addition, you can generally answer the questions in your area of expertise more quickly, giving you more time in the areas where you have less proficiency.

• You are strongly advised to record your answers on the answer sheet as you take theexamination rather than wait until the end of the examination session. Some candidates mark their answers in the question book and wait until the end of the examination to fill out the computer scan sheet. If time is called before you have transferred your answers, you will not be given additional time.

• Your total score on the examination is the number of questions answered correctly. No deduction is taken for incorrect responses and you will not be penalized for guessing. You should attempt to answer all questions.

• If you finish early, go back and review your work. Many candidates skip questions with the intention of answering them later, and then forget that questions were left unanswered.

• Don’t discuss specifics of the morning session of the examination with other candidates over the lunch break. Too often, candidates’ confidence is shattered after discussing the examination with other candidates, which can lead to poor performance on the afternoon session of the examination.

• Remain calm and confident. When you have prepared well, you should be able to use logic to deduce many of the answers. Don’t be upset if there are several questions you cannot immediately answer.

• Think carefully about your own background and strengths and weaknesses. Then consider devoting special attention to the areas of the curriculum where you are not up-to-date (to build up your general knowledge) and taking the online sample examinations (for good test-taking practice).

• Even if you have not had a chance to fully prepare, consider taking the examination anyway. (1) You will be more “testwise,” knowing more about the skills and abilities it tests for the next year’s exam. (2) Taking the examination may give you more motivation and background as you study for next year’s exam.

• Before the examination:

o Visit the test center a week before the examination to get an idea of traffic, parking, public transportation (if available), and how long it will take to get to the center onthe day of the examination.

1. o Get a good night’s sleep so that you arrive at the test center well rested. Don’t attemptto do too much last minute studying on the night before. Success or failure on theexamination is determined by what you have done over the past few months—not

what you do on the night before the examination.

o Arrive at the test center early so that you don’t add to your stress level by wondering if you will make it to the test center on time.

2. Tips for Taking the Level I Multiple-Choice Examinations

The 2009 Level I examinations will include 240 total multiple-choice questions, 120 on themorning session of the examination and 120 on the afternoon session. Each multiple-choicequestion is free-standing (not dependent on other questions) and has four possible answers: A, B,C, and D. All questions are equally weighted and there is no penalty for guessing. These are some ideas that may help you while you are taking the Level I multiple choice examination.

• Carefully manage your time. Don’t spend too much time on any one question or topic area. On average, you should allocate 1.5 minutes to each multiple choice question, including timeto record your answer on the answer sheet.

• Read the questions carefully. A careless “skimming” of the question may lead you to a completely different, and incorrect, answer.

• Read each item carefully and eliminate obviously incorrect answers. If you have to guess and you can eliminate one or two of the responses, your odds of answering the question correctly are much higher. There is no penalty for guessing.

• No individual has ever received a perfect score on any level of the CFA examination; there will be some questions on the examination that you will not be able to answer correctly. This is not by design. There is a great deal of material to master, and examination questions are challenging. A score of 70% is very good on the CFA examination. This means that on Level I, for instance, you can miss 72 (out of 240) questions and still earn 70% of the points.

• Examination writers use a standard set of formatting conventions on the selected response questions (multiple choice items on Level I and item set items on Levels II and III). Many sample exams produced by third parties do not follow these conventions, so you should review the CFA Institute format presented here:

Formatting Conventions Used for 2009 Level I Examinations

Item Construction:

Each item on the Level I multiple choice and Levels II and III item sets consists of a stem (question, statement, and/or table) and four distracters, A, B, C, and D. There are three basicformats used:

1. Stems using sentence completion with four unique distracters

2. Stems phrased as questions with four unique distracters

3. Stems using sentence completion or stems phrased as questions with pairs of distracters

arranged in two columns

The first two formats are routinely used for multiple choice items regardless of the nature of the

examination:

Example 1 (Stem using sentence completion)

An analyst suspects that a particular company’s U.S. GAAP financial statements may require adjustment because the company uses take-or-pay contracts. The most likely effect of the appropriate adjustments would be to increase that company’s

A. return on assets.

B. debt-to-equity ratio.

C. interest coverage ratio.

D. return on common equity.

Example 2 (Stem phrased as question)

An analyst suspects that a particular company’s U.S. GAAP financial statements may require adjustment because the company uses take-or-pay contracts. Which of the following is most likely to increase as a result of the appropriate adjustments being made to that company’s

financial statements?

A. Return on assets.

B. Debt-to-equity ratio.

C. Interest coverage ratio.

D. Return on common equity.

The third basic format is used extensively on the CFA examination and has several variations.

Alternative versions of the two-column distracter format are illustrated below:

Example 3(a)

An analyst suspects that a particular company’s U.S. GAAP financial statements may require adjustment because the company uses take-or-pay contracts. The most likely effect of the appropriate adjustments on the company’s return on assets (ROA) and debt-to-equity ratio, respectively, would be

ROA Debt-to-equity ratio

A. Increase Increase

B. Increase Decrease

C. Decrease Increase

D. Decrease Decrease

Example 3(b)

An analyst suspects that a particular company’s U.S. GAAP financial statements may require adjustment because the company uses take-or-pay contracts. What is the most likely effect of the appropriate adjustments on the company’s return on assets? debt-to-equity ratio?

A. Increase Increase

B. Increase Decrease

C. Decrease Increase

D. Decrease Decrease

Example 3(c)

An analyst suspects that a particular company’s U.S. GAAP financial statements may require adjustment because the company uses take-or-pay contracts. Will the appropriate adjustments most likely increase the company’s return on assets? debt-to-equity ratio?

A. No No

B. No Yes

C. Yes No

D. Yes Yes

Item Stems:

The Level I CFA examination does not use EXCEPT, TRUE, or FALSE in item stems and avoids the use of NOT in item stems whenever possible. When appropriate, stems will include one of the following qualifiers: most likely, least likely, best described, most appropriate, most accurate, least appropriate, least accurate. Each stem supports only one item on the examination.

Distracters:

The Level I CFA examination does not use any of the following distracters:

all of the above, none of the above, I and II only, II and III only, cannot determine,

cannot calculate, not enough information to determine.

Distracters consisting of words or sentences are typically ordered from shortest to longest; distracters that are quantitative are ordered from the smallest number to largest number. The distracters agree grammatically with the stem; language common to all distracters is placed in the stem.

3. Tips for Taking the Levels II and III Item Set Examinations

The 2009 Level II CFA examination consists of 20 item sets—10 on the morning session of the examination and 10 on the afternoon session. The 2009 Level III examination uses the essay format in the morning, and the item set format, with 10 item sets, in the afternoon.

Item sets are sometimes called “mini-cases.” Each item set on the CFA examination consists of a vignette (or case statement) and six multiple choice items (questions).

The length of a vignette ranges from about 1 page to 2.5 pages. The longer vignettes are those that include several tables of information, such as for a financial statement analysis, statistics, or fixed income item set. The average length of the vignettes on the examination is about 1.5 pages.

The six items in each item set can only be answered based on the information in the vignette. Hence, the items are not free-standing (as in Level I), but are drawn from the vignette. You will need to read the vignette before answering the items, and you will need to refer back to the vignette for information. The six items can be answered independent of each other, but they do require information in the vignette.

On the Level II examination, you will have a total of 120 items (20 vignettes with 6 items each) compared to 240 multiple choice items on the Level I examination. The examination formats (including the essays at Level III) adapt to the changing topic focus and learning focus at each level. The topic focus on Level I is on investment tools, the topic focus on Level II is on asset valuation, and the topic focus on Level III is on portfolio management. The learning focus also changes, from knowledge and comprehension (Level I), to application and analysis (Level II), and to synthesis and evaluation (Level III).

The Level II and III examinations are graded for 360 points, corresponding to the number of minutes on the examination. The 120 Level II items are equally weighted, 3 points each, with no penalty for guessing. At Level III, the morning essay examination is 180 points and the afternoon item set examination is 180 points.

• Read the formatting conventions (above in section 2) that are followed for writing multiplechoice questions at Level I. These same “best practices” are followed for item sets questions at Levels II and III.

• Expect to go slower on the Level II examination than on Level I. You are answering 50% fewer questions, but spending twice as much time thinking about each one (including time for reading and analyzing the vignettes).

• You may mark up your examination book. Circle or underline important information in the vignette and write down your equations or logic. However, only your final answers recorded on the answer sheets are graded.

• If you do not know the answer to a question:

o You might be able to eliminate one or more choices based on what you know about the topic. There is no penalty for guessing.

o Use reasoning and logic. The concepts that you know on one topic often apply toanother topic.

• No one has ever made a perfect score on the CFA examination. A 70% score on the Level II examination means that you got 84 items correct (and 36 incorrect). Study the curriculum, practice your test-taking skills, and be determined to score well on the examination.

4. Tips for Taking the Level III Essay Examinations

The 2009 Level III essay examination is given in the morning session, and has a maximum score of 180 points. The essay examination typically has 12–15 questions, and questions may have multiple parts. The points for each question and each question part are given in the examination. Copies of the past several years’ essay examinations and guideline answers are available online at http://www.cfainstitute.org/canservices/practiceexams/ and Book 5 of the candidate readings.

The following are some general tips for Level III candidates on the essay examination:

• The published guideline answers on past essay examinations are more complete and betterwritten than actual examination answers that receive full credit.

• Answers are graded only on content. They are not graded for language and style.

• Use short phrases and bullet points to save time, but be sure your meaning is clear.

• Handwriting is rarely so poor that the answer cannot be graded.

• Points are awarded for direct answers to a question.

• No points are awarded for general knowledge that is not responsive to the question.

• Do not spend too much time writing an answer. This is particularly tempting when you know the topic well. Formulate a direct response to the command words, and use the amount oftime allotted.

• The following are common reasons that graders give for poor candidate performance on theessay portion of Level III:

1. o Not responsive to command word (list, define, etc.).

2. o Answered a question they wish had been asked instead of the question that was asked.

3. o No work shown on a calculation question and the answer is incorrect.

4. o Hedging on questions that ask for a recommendation and justification (recommended A, but justified B).

5. o Neglected to answer part of the question (especially if a several part question. You can still answer part E, even if you do not know the answer to part D).

o Content area experts spend too much time on their area of expertise, leaving too little time for weak areas.

5. Myths about the CFA Examinations

You may have heard several of the “myths” about the CFA examination, which are given here:

• Myth: “The item sets are less rigorous than the essays.”

The feedback from many Level III candidates is that the item sets were more difficult. In reality, comparing the difficulty of item sets and essays is problematic because they cover different topic areas of the curriculum. In June 2005, the average scores on the essays and item sets were identical.

• Myth: “New readings are not tested in the CFA exam during the first year they are in the curriculum. They will be tested in the second year, and you should skip new readings in your studying.”

This is absolutely not true! New readings are as likely to be tested the year they are first added to the curriculum as existing readings.

• Myth: “CFA Institute sets a low passing rate so that it can make the most money.”

The Board of Governors sets the minimum passing score for the “just qualified candidate,” a score for someone judged to be just qualified to become a practicing investment professional. Candidates are judged against the knowledge, skills, and abilities expected in the profession, not CFA Institute finances. The passing rate is the percentage of candidates whose score is equal to or above the minimum passing score.

• Myths: “If you don’t know the answer, pick C.” “If you don’t know the answer, never pick the longest answer.” “Never pick the shortest answer.” “Never pick an answer that includes words like ‘never’ or ‘always.’”

Don’t waste your time with these games. There are several well-known behavioral idiosyncrasies of examination writers and examination takers. The CFA examination writers are well educated on these and they are written out of the examination. Tricks will not help you pass the examination. Just give your honest, best answer to every question.

• Myth: “CFA Institute writes the examination questions based on what is, or is not, in the notes prepared by review course providers.”

The examination development process begins long before any review course has published its notes. Question writers begin drafting examination questions several months before any review course materials are published. At no time during the development process do question writers or CFA Institute staff consult review course materials.

• Myth: “There is the right way, the wrong way, and the CFA way.”

Although this is a cute saying, it not helpful. The assigned curriculum is academically and professionally sound. (We receive emails from candidates on any instance where the curriculum is not tight.) The examination is designed to be sound, also. The “correct

answer” and the “CFA answer” should be the same.

• Myth: “The key to passing the exam is to get the most points on Financial Statement Analysis. You should skip Derivatives because everyone misses those anyway.”

This is bad advice. Statistical analysis of examination results shows that all topics are contributing proportionately to success on the examination. If you decide to skip some ofthe study sessions, you may be making a mistake. Studying twice as hard on your favorite

topics and skipping your least-favorite topics will probably lower your total score. Try to study all topic areas assigned for the examination.

6. A Final Word

Over the years, the reputation of the CFA Program has been built by the thousands of charterholders involved in developing the curriculum and in writing and grading the examinations. The reputation of the CFA charter has also been built by the ethical and professional conduct of our members in their professional and personal lives. This reputation continues, and there are hundreds of charterholders involved in developing the 2009 curriculum and examinations.

The CFA curriculum and the Candidate Body of Knowledge represent the knowledge that a broad group of global investment professionals has identified as critical to the success of a person entering this profession. The CFA examinations are designed to measure a candidate’s degree of mastery of the CFA curriculum. Examinations are developed to be faithful to the curriculum, fair to candidates, and valuable to members, employers, and investors.

Put in the recommended amount of study time and hone your test-taking skills for exam day. Good luck. We hope that the process of studying for the examination is valuable to you, and that you are successful in earning your CFA charter.

Since CFA Level 1 scores just came out, a good number of people who passed L! are now beginning to stress about whether they can pass Level 2 with less than 20 weeks of study time. Without a doubt, it’ll be tough. But there are some things you can do to maximize your chances of passing.

One of the best resources out there is Analyst Forum. It’s an online forum populated by people who are studying for (or have already passed) the various CFA levels. I read it regularly, and you should too - it’s absolutely superb.

One poster (BBD) recently shared his strategy on how to pass the exam on limited study time. I’ve copied it below. I’d also note that (while the poster recommended the Schweser study notes, Stalla also has good material):

I have learnt several things on this forum during the 3 years I studied for CFA. There were 10 of us who started CFA together and 3 of us completed it 3/3; 4 did not complete the course. I thought I would share some ideas that might help others.

The key challenge in CFA is huge volume of material. The subject matter is generally not very complex (except one or two areas like Derivatives or Bonds). If some folks find the complexity to be severe, they need to a) allow more time to studies and b) perhaps reconsider their reasons for doing CFA. For most people with some financial background, volume and not complexity will be the main issue.

To master the challenge posed by volume I suggest the following steps with consideration that only 2 months are left. These steps apply to all levels. In the brackets I note some anecdotes:

1. Master the basics - this comprises roughly 50% of the volume. This also represents the easiest marks that you cannot afford to lose. The way to do it is noted in the steps below.

2. Get hold of Schweser VCDs. In 2-4 hr sessions you can cover a SS. The lectures give a good overview of the most important points. Jot down the main points in on a note pad as you listen to the CD. [I often found learning new concepts easy by listening to something instead of reading a large amount of text. Also it improved my retention. I bought my set second hand from another friend who also did CFA 3/3 and recommended it highly.]

3. Next read the Schweser Secret Sauce. This is a condensed version of all the notes and consists of roughly 200 pages. After listening to the DVDs, it’s quick and easy to do it. On average you could cover SS in 1-2hrs. [Make sure you always have the Secret Sauce notes with you. Read these often. They are the basics and you must master it. I read these during my commute, at breakfast etc and knew it inside out]

4. Go for the kill - attack all the questions you can find on the SS. These must include all the old exam questions. Do not restrict the questions you answer. You must attempt all the questions you can find. Practise, practise, practise. Some questions you will not be able to answer because you dont know enough of the SS. Don’t panic. Follow the step 5 below.

5. For the questions you cannot answer, refer to the Schweser notes. Scan through the whole notes, you will already be familiar with most of it by covering the Secret Sauce and VCD, and then focus on the area you find difficult or don’t know about.

6. With ~2hrs on DVD + 2hrs on Secret Sauce + 4hrs on questions + 2 hrs on weak areas, you can cover a SS in 8 hours. Depending on the time available, you could comfortably cover a SS in 2 days. That was roughly my average. 18 SS took +/- 36 days and the remaining days were for revision.

7. Volume can only be mastered by revision. Don’t try to learn a SS 100% the first time. If you know 70-80% the first time that is good. You will learn an additional 10-20% the next time round and that will be enough to get through the exam.

8. Time management is key. Be very strict on the time spent on one SS. Don’t exceed the time on any one SS at the sacrifice of another. Easy marks are available across all SS. [ I know its easier said than done. I too spent much longer on Derivatives than I expected to however that is also because I really enjoyed the subject].

9. Make sure you take a break. Let the mind relax. A tense mind makes many mistakes. That is I noted 50 days above - leave some time to relax and do something else.

10. D-Day is key. In my opinion the exam day stress management is one of the most important factors in passing or failing. Be relaxed on the exam day. I remember in my L3 exam I made a few silly errors in the morning session. I had many friends in the same exam and we ended up asking how it went during the break. When the mistakes surfaced, I left their company and went to my car and sat with the AC on till the end of the break. This helped me relax and I had a good afternoon session.

There is no time left to argue which notes or whether or not to refer to the text books. This is the time to just do it - imagine you are driving at 120mph and focus fully.

Read the whole thing (and the associated comments) here.

While BBD most likely came to the table with a better background than most candidates , a number of his suggestions can be applied (with modification) by almost everyone. Here’s what I’d take from it:

1. Time and money are substitutes (to a point). If you can afford to spend the money to buy supporting resources (videos, classes, study guides), it will save you time spent studying. In particular, the DVDs from the prep providers can potentially allow you to grasp material much more quickly than you could reading it from the CFAI material alone. Many people get material much more quickly from a lecture than from reading a book. In addition, study guide are a great way to distill the material down. T his doesn’t mean that you don’t need the CFAI curriculum. In a perfect world, that’s all you’d get, and you’d focus solely on the CFAI materials. But it’s not a perfect world. As an example, I’ve signed up for a two-day intensive review course for the FInancial Statemen Analysis material. I’ll gladly shell out $500 if it’ll save me 30-50 hours of additional study time.

2. Major on the majors. Although there’s a lot of material, there’s a lot of “low hanging fruit” on the exam. At the minimum, you should make sure you get the key concepts in every section.

3. Work questions. It’s hard to get material down merely by reading material or watching a video. These are essentially passive learning strategies, and they simply don’t work - learning is an active, participative exercise. Work as many problems as you can, and answer as many questions as you can. This is one way that prep providers can be really helpful. Both Schweser and Stalla have test banks. While the quality of their questions can vary, answering ANY question can be helpful. In addition, if you’re near a local society that gives a mock exam, take it.

4. Time Management is critical. Don’t shoot for perfect the first time through the material. Since the curriculum is extremely broad, you don’t have the luxury of spending too much time on any one section. For your first pass through a given segment, shoot for 60-70% on the questions at the end of each section, then move on. Once you’ve done every section, go back and brush up. Remember - you’re shooting for a B to a B+, not an A.

5. If you do have to focus, focus on the “Big” sections. Financial Statement Analysis (now called Financial Reporting and Analysis), Ethics, Fixed Income, and Quantitative Methods count for almost 60% of the level 1 exam, and Equity, FRA and Ethics are about 50% of the L2 exam. If you nail the “Big 4 (for L1)” or “Big 3″ for L2, you’ll be in good shape. You still have to cover everything (see #4), but if you have extra time, put in extra here.

6. Don’t neglect any section. Although the “Big 4″ (See above) count for a lot of the exam, you only get 20 item sets (with 6 questions each). If you miss one of them, that’s 5% off your grade right there. As an example, a lot of the L2 candidates who failed last time around noted that they completely missed an item set on Treynor-Black.Good luck - it’s a lot of material, but there’s a big payoff.

Ten Tips to Pass the CFA Level 1 Exam

CFA is the most prestigious designation in Investments you can have after your name. Here are the first steps to acquiring it.

10. Start Early

Spend some time reflecting on why you want to be a CFA. Work out how much prep you would require. The CFA institute prescribes at least 250 hours. However if you do not have any background in finance you might require considerably longer time. On the other hand if you already know most of the stuff even a concerted prep for 1 month might suffice. If you are totally a greenhorn do not apply for the nearest date, pick the next one. Not only would you save money but also buy precious time you need for preparation.

9. Get the Right Study Material

Unfortunately the material supplied by the CFA Institute is bulky and cumbersome. In fact it has put many a candidates off. Majority of the people who clear the exam use Schweser Notes and Software. We also highly recommend this based on personal experience.

8. Calculator

The CFA Institute prescribe only 2 or three calculators. Buy your Texas BA II Plus or Texas BA II Plus Professional as soon as you intend starting with your prep. It is important you get used to the calculator and adjust its settings to your convenience.

7. Work on a Schedule

Take time out from your daily schedule. Diligently follow your plan. Weekends are ideal for studying, also figure out if you are a day or a night person. Try to compete against yourself and keep a score of your regularity.

6. Ethics and FSA

These should be two pillars in your preparation. They have 15% and 20% weightage respectively and there is no way you can afford to do badly in these. For ethics read the prescribed material over and over again. Do the same with caselets and practice questions.

5. Build on your Strengths

Your strengths can be quant or fixed income and equities. Whichever they be make sure you know that topic inside out. Try to max your score in them with no wrong answers. This would really help to push your cumulative score. Needless to say the greater your strengths better your chances.

4. Form a Study Group

Forming a study group that meets on weekends is your chance to evaluate your performance relative to others. No matter how good or badly you compare remember not to get too carried away. Broadly this exam requires self study group sessions are simply a way to encourage yourself to perform better.

3. Seek Help

Do not shy away from joining coaching classes for this exam. Sometime concepts that seem cryptic to you might just dissolve if you have a good teacher explaining them to you. Take time out to investigate a good prep program, ask current students before committing yourself.

2. Develop Exam Temperament

It is important to hit the ground running on D-Day. You must be able to effectively time yourself and finish attempting all your questions on the OMR sheet. Simulate exam environment as far as possible. Enroll for some mock exam. Even if you are preparing from home use an OMR sheet for your practice.

1. Work Hard

There is no substitute for this one. I myself a Finance graduate from a top B-School had to work exceptionally hard. Know and accept ‘Nothing worth having comes Easy’

Tips for the CFA Exam Day

The CFA Level I exam is 100% multiple choice questions, the morning and afternoon paper will each contain 120 questions.

You will be under time pressure in the exam and need to answer on average one question every 1½ minutes so you must keep moving through the questions. We recommend the following strategies:

1. There is a strong argument for working methodically through the questions in the order they are set but you might wish to start with a subject where you feel confident and which you can work through fairly quickly. But avoid hopping from one subject to

another, this will waste time and you may end up missing one section of questions out.

2. Don’t panic if you hit some difficult questions, you can probably get as many as 30 or 40 questions incorrect on each paper and still pass the exam.

3. Ethics in study session 1 is an important topic, if you are a marginal candidate your ethics score could be the deciding factor whether you pass the exam.

4. There is no penalty for getting an answer incorrect, so if you don’t know the answer eliminate any obviously wrong answers and guess which one is correct.

5. Mark questions in the exam booklet when you are not sure of the answer or where the calculation needs checking and come back to them when you have finished all the other questions.

6. Do not get distracted by a question that does not make sense, if the question turns out to be ambiguous then it will be excluded when it comes to grading the paper.

7. Read the questions carefully, particularly when there is a negative statement in the question.

8. Leave time to check your answers on the answer sheet, be careful you don’t miss answering a question and mark subsequent answers against the wrong question number on the answer sheet.

. Technical is still IMPORTANT

There is a rumor that after CKE, technical is no longer that important. It is partially true that you no longer have to memorize all the tricky detailed rules applicable to those rare circumstances. However, you are still expected to know, or memorize all the general rules, especially in accounting.

Unlike UFE, most SOA issues have a definite answer. Either you get it or lose it. How can you score a C (Competent) without having the correct knowledge of the accounting treatment? Your case writing skill is the skeleton, but you still need the technical knowledge to fill in the content. Therefore, a wise candidate will set aside certain time (a lot of time) to study, to memorize the technical, and then learn how to apply them to the cases.

2. Template is helpful, but NOT always

You probably heard a lot about those wonderful templates such as RAMP (risk, approach, materiality, and procedures)for audit planning. They are useful in many cases as a checklist, which reminds you what to do next without much thinking. However, they are NOT always applicable.

Let’s say we have a case without too much information about users or income figures. Follow the template, we would need to talk about materiality in the response. And we know that simply state that materiality is 5% of income from continuing operation will not get you any points. . But would you be able to write a sound response of materiality without information about users or income figures? The answer is no. In this case, it does not give you any info to write the materiality, which means you are not expected to do that. Do not blindly follow the template and waste your precious time on something you can’t get points. Go over the templates if you like, but do SKIP the ones you have nothing to say.

3. Time management and ranking

How to make a moderate difficulty level SOA case becoming a harder one? It’s easy, just shorten the time of writing the case by 20 minutes, and you will know what the mission impossible is. Norgrove says this is the exam that fails perfectionist, and I totally agree on that. Most of the time in writing the SOA exam, you have to choose, to rank what issue you’ll spend more time on writing. Sometime, it’s even a bet. My recommendation is to answer the issues from most important to least based on your assessment. The following ranking skills are something you could consider:

* by materiality

* by the nature of the issue.  e.g. revenue recognition is usually important, but not always

* by testing areas, e.g. PM has more weight than governance, if you have to choose, spend more time on the heavily tested  area).

As I said, it’s some sort of bet. It’s a peer to peer exam, you only need to write ONE more (not all) primary issue better than the rest candidates to win the battle.

4. When you are not sure, choose one, and stick to it

We study, a lot, but there is always more to learn. You never know what will be on the exam because they like surprises. When you see topics make you feel dizzy and want to skip, DON’T. Your peers probably feel exactly the same as you are. When you are unsure about the treatment, pick one side and argue for it as if it is real, and you will score better than others. Remember that do NOT ever let the markers see that you are uncertain. You can argue both side, but you must have a sound conclusion.