Format Change For 2009 CFA Exams

[CFAMaven]

mo34 Wrote:
-------------------------------------------------------
> They'll probably see a jump in L1 candidates. Many
> bozos will like they're chances with the new
> format.
>
> Next step would proabably be to offer L1 4 times a
> year.

Yeah all the village idiots will hear about the news and tell each other to apply (sarcasm). And you can't let more bozos try the CFA, bozos such as engineers, physics grads, lawyers, and general hard-working people.

mo34, trust me on this, I highly doubt the pass rate will shoot up because of the change. Though I agree the initial perception looks bad, as this is the only test Ive ever heard that will have 3 multiple choice, I doubt completing the CFA program has suddenly become easier.

 

[Dreary]

More bozos mean better chance for the hard working candidates. I wouldn't think of it as bad.

 

[mo34]

CFAMaven Wrote:
-------------------------------------------------------
> mo34 Wrote:
> --------------------------------------------------
> -----
> > They'll probably see a jump in L1 candidates.
> Many
> > bozos will like they're chances with the new
> > format.
> >
> > Next step would proabably be to offer L1 4 times
> a
> > year.
>
> Yeah all the village idiots will hear about the
> news and tell each other to apply (sarcasm). And
> you can't let more bozos try the CFA, bozos such
> as engineers, physics grads, lawyers, and general
> hard-working people.
>
> mo34, trust me on this, I highly doubt the pass
> rate will shoot up because of the change. Though I
> agree the initial perception looks bad, as this is
> the only test Ive ever heard that will have 3
> multiple choice, I doubt completing the CFA
> program has suddenly become easier.

The perception I get by reading posts on this forum, is that the CFA charter is turning into a lottery ticket of some kind. We've had people from every possible background imaginable post the famous question " Career Change Possible ? "

For some reason people believe that all you've got to do is pass 3 MC tests and you've made it to unlimited riches (disclosure: I am personally an Aerospace Engineer, so no disrespect meant.) ...

With the new "easier" format, the CFA institute should be able to cash in on this trend by giving the L1 test more often and possibly build an entire business around this lottery ticket image now growing; at the end of the day all they care about is their bottom line.

Look at the number of people taking the GMAT everyday all around the globe and for $250 a pop and for what ? to get into a Shi**y MBA program (99% of them) and waste more money ..

 

[LICandidate]

I think this is solely a perception issue. Yes the average raw score will go up obviously as the chance of getting an answer right by purely guessing rises to 33% from 25%.

This however does not make the test easier. As stated many times before in this thread the CFAI sets the minimum passing score. They will surely not let any big spike in the passing rate occur.

If anything I think this will make the exam harder. If before the mps was set at 67%, that is what a fully prepared candidate needed to score to pass. An unprepared candidate who guessed randomly would receive a 25% on average and it would be a statistical impossibility for them to pass.

Even with that person getting a 33% it is still nearly as statistically impossible for them to pass, even if the mps doesn't change. However, it will change and will go up slightly.

This probably leaves it just as impossible for a guesser to pass as under the 4 choice system, but makes the mps higher for the prepared candidate.

As the CFAI noted in the faq the fourth choice almost never gets selected. A well prepared candidate would have known the fourth choice was wrong on basically every question. This leaves the well prepared candidate in the same position as before with just a higher mps to achieve.

As a result I think this causes a perception of the test being easier, but in fact would likely make it harder for those prepared, and not change the chances for the unprepared. Still I don't like it. I am hoping I can pass L2 this June, so that i will only have to take L3 under these new criteria.

 

[z3159712]

Maybe next they'd listing CFAInstitute on the NASDAQ and start hawking CFA Charters on ebay.

(That was a light hearted joke for everyone under stress from work)

As a Level II candidate for June 08, I'm very suprised at these changes and daresay will affect me if I fail the coming exam. A common feeling I read from the messages above is that the education board who determines curriculum failed to notify current Charterholders, but rather made it an internal decision (reminds me of News Corp, which only issues pref shares).

For better or for worse, this has gone ahead and I haven't seen any backflips by CFA Institute before. The only thing i can say for certain is people are still going to debate this change in the future also.

 

[JoeyDVivre]

I dunno about that. Flash back to the CE initiative that AIMR thought was a certainty.

 

[WillyR]

Has anyone here actually taken a AIMR CE credit program?

Willy