Hardest Area of CFA Exam?

the derivatives sections on level 1 are very straightforward. I guess if you've never seen the stuff, it might take a while to really grasp, but it's not horrible. i think a lot of people don't give it enough time simply because there aren't that many questions on the test about them. if you take the time to study them, though, these should be fairly easy points for you to score. put/call parity, the basics of forwards and futures, etc... it's not simple, but they don't really throw you curveballs either on the test.

for june 2nd, i'd say econ was the surprise that might've kicked my butt- far more 2 part questions in there than maybe any other section, so you really had to know 2 questions for every one to get the sure thing points. going 50/50 in econ wasn't that tough. ethics i knew going in was going to be challenging. read the handbook and more than once.
know those examples inside and out.

FSA is the topic you really should focus on and study until you "get" it. that might take you a long while, it might take you a short while, everyone is different. that is the meat of the test right there, so read it and do examples until you are very confident going in. if you have FSA down, chances are you'll dominate level 1.
 
I have to agree with Bannisja on that one. There must have been at least 2-3 questions almost exactly like the examples in the ethics section in book, with a few others very quite similar in nature of the ethical situation. Knowing FSA well is no doubt a must. It's also a confidence booster knowing you've mastered about 20 % of the exam (excluding CF). I also hate to say this, but taking all the online CFAI sample exams might be a good, albeit expensive option. Ethics, FSA, Asset Valuation make up 65% of the exam though (156 questions). Its a good idea to know these inside topics pretty damn well.
 
FSA part was a one of the toughest for me, even though I majored in Accounting in my undergrad school. The material tests your fin. statements analysis skills, but without good understanding of accounting concepts and basic premises that part is a killer. My advice for all those who will take Level I - master FSA part!
 
I agree with aza. Understanding FSA is very important for L1
 
The general consensus is that FSA is the hardest. However, I found bond valuation the hardest (especially convexity and term structure of bonds, bootstrapping etc.).

I had very little knowledge of both FSA and bond valuation before I started studying for Level I. Ironically, I scored 70%> in both of these sections. The only section where I scored under 70% is alternative investments, which I thought was piece of cake (and was doing well in the practice exams in that section).

This world is full of surprises.

-ron-



Edited 2 time(s). Last edit at Tuesday, July 24, 2007 at 12:48PM by ronyusa.
 
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