CFA 300 Hours Exam Insights 2015 PDF

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CFA® Exam Insights

2015 edition
Proven CFA exam advice and guidelines

Analyses from 2012-2014 CFA exams
Levels I, II & III
300Hours.com
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Table of Contents
Getting Started 4
Section 1: What are the topics that matter in each CFA level? 12
Section 2: How large are the differences between failing bands? 25
Section 3: What is the estimated Minimum Passing Score? 31
Section 4: When should I start my CFA study preparation? 39
Section 5: How many practice exams should I aim for? 44
Section 6: How important is having a background in finance? 49
Section 7: How can candidates better address the Level III essay section? 59
Frequently Asked Questions 69

Getting Started
An introduction and how to use this book

300 Hours CFA Exam Insights

What’s this book about? How can it help me?
This book contains all our analytics, conclusions and lessons from analyzing the largest sample of exam
results collected outside of CFA Institute.
There’s a lot to learn from thousands of past experiences. Difficult topics, passing scores, an
assessment of how competitive the field is, the importance
of your work and education background – these are just a
few things you will learn from this book. The Minimum Passing Score
(MPS) is the score you have to
So what’s this Minimum Passing Score that you talk beat to pass your CFA exam.
about?
In simple terms, the Minimum Passing Score (MPS) is the
score you have to beat to pass your CFA exam. This normally is around the 55%-70% range. Do not
confuse this with the pass rate, which is normally lower and represents the percentage of candidates
that passed a particular exam.
CFA Institute strongly feels that the MPS should not be a focus of the exams as it leads to unfair
comparisons across years. Consequently CFA Institute has never made any MPS for any level public.
In earlier days, the MPS was a simple formula - 70% of the highest scoring candidate for that year. If the
highest-scoring candidate scored 90%, the MPS would therefore be 70%*90% = 63%. Some candidates
still mistakenly believe that this is the method used to determine the MPS today.
Presently, the MPS is determined by a custom methodology devised by CFA Institute, and one of the
primary inputs is a series of workshops based on the Angoff model. A large, diverse group of CFA
charterholders evaluate the entire exam individually question by question and makes a judgment on the
performance of the just-competent candidate. In
other words, envisioning a candidate they judge to be
just good enough to pass, they estimate the

One of the primary inputs probability that this candidate will get this question
(into the MPS) is a series right.
of workshops based on the
Angoff model.
Once all the evaluations are done, the charterholders
take a look at actual candidate performance and the
evaluation process is repeated again. Psychometricians oversee the entire process and the results of
this workshop is the main reference (but not the final word) for setting the MPS.



The CFA Institute Board of Governors then puts all information on the table. All available information is
considered including recommendations from the Angoff workshop (which is the most important input),
and then a final decision is made on the MPS. The objective is to set a consistent competency level
across years.
You therefore pass by being better than what CFA Institute defines as a ‘just-competent’
candidate. This may be indirectly influenced by the performance of candidates taking the same exam
as you, but it definitely is not a primary driver. So remarks such as ‘bringing down the curve’ are not
exactly accurate.
So I should aim for a score similar to the MPS then?
No. In short, always aim to beat 70%. Always, always, always.
The MPS calculations in this book are for your reference, and to see how this has changed over the
years. Aiming to just beat the MPS is still terrible practice. No matter what information is disclosed on
the MPS, with the exam format as it stands, you should always aim for 70% and above. Difficulties
change across papers and years as well.
If you aim to be just good enough, all it takes to be burned is one or two slips, or for the bar to be
raised slightly.
Where’s my actual score? What do the score categories mean?
Your actual score is not released by CFA Institute. Don’t ask us why; we don’t know either.
Exam results will be emailed to you and topics will receive ‘grades’ in 3 categories:
• Poor – less or equal to 50%
• Poor to average - between 50% and 70%
• Above average - more than 70%
Your actual score is not released by

the CFA Institute. Exam results
will be emailed to you and topics
will receive ‘grades’ in 3 categories.


A typical exam’s results email may look like this. This is an actual email from one of us in the 300 Hours
team, with some details changed:
Dear So and So,
Congratulations. I am very pleased to inform you that you passed the June 20XX Level III CFA exam. You are
one step closer to achieving your goal of earning the globally respected CFA charter.
XX% of candidates passed the June 20XX Level III CFA exam. Your detailed exam results, including a matrix
outlining your strengths and weaknesses, are in the table below.
Now that you have passed Level III, you must be a regular member of CFA Institute to be eligible for the award
of the CFA charter. Log in now to verify your current membership status or complete the application process.
Again, congratulations on your achievement.
Sincerely,
John D. Rogers, CFA
President and Chief Executive Officer
CFA Institute
The three columns on the right are marked with asterisks to indicate your performance on each topic area.
Essay
Max 51%-
Q# Topic <=50% >70%
Pts 70%
1 Portfolio Management - Individual 15 * - -
2 Portfolio Management - Individual 23 * - -
3 Portfolio Management - Institutional 26 - * -
4 Economics 23 - - *
5 Portfolio Management - Asset Allocation 20 * - -
6 Fixed Income Investments 19 - * -


7 Equity Investments 22 - * -
Portfolio Management - Risk

8 16 - - *
Management
Portfolio Management – Performance

9 16 * - -
Eval.
Item-Set
Max 51%-
Q# Topic <=50% >70%
Pts 70%
- Alternative Investments 18 - * -
- Economics 18 - * -
- Equity Investments 18 - * -
- Ethical & Professional Standards 36 - - *
- Fixed Income Investments 36 - - *
- Portfolio Management - Execution 18 - - *
- Portfolio Management - Individual 18 - - *
Portfolio Management - Risk

- 18 - - *
Management
As you see you get an indication of what range you scored in for each category, but not your exact
score. If you’d like more insight as to what the implications of your results are, that’s what our Analyze
Results section (go.300hours.com/results) is for.
Pass rates are low because they’re counting all the people
that didn’t show up. Right?
Wrong. No-shows are excluded from the official pass rates. No-shows are not
counted in the official
pass rates.


Pass rates for the CFA exam are not great - usually coming in at <= 50% especially at the lower levels.
They however do not include candidates that were absent on exam day, who are about 25% of all
registered candidates every year. So if you were thinking to yourself that the pass rates are low
because loads of people weren’t serious about it and didn’t show, that’s just not true, unfortunately.
I entered my score into go.300hours.com/results. What do the calculated maximum, minimum
and 40/60/80 scores mean?
This is a bit of a long one. But see if you can follow us through this.
As your score comes in three categories with a corresponding points range, there are several simple
assumptions we can make about this. This is best illustrated using a table:
Simple view:
Score category <=50% 51%-70% >70%
Minimum score 0% 51% 71%
Maximum score 50% 70% 100%
40/60/80 score 40% 60% 80%
This is the easiest way to understand how the various sets of scores are defined and calculated.
In practice, however, we at 300 Hours have taken this to a more detailed level. There are further
implications depending on the format of the exam of what actually can be the possibilities of the
minimum, maximum and 40/60/80 scores.
Let’s take the first category of the Item-Set portion of the Level III score in the sample email,
Alternative Investments, as an example. The ‘max points’ for this category is 18, which means that this
was a 6 question item-set (6 questions at 3 points each).
The actual assumptions that should be made for a more accurate calculation should therefore be as the
following table. Note that many numbers for the minimum and maximum assumptions are now different
compared to the simple view above.


Accurate view (for Alt Investments, six questions, Level III example):
Score category <=50% 51%-70% >70%
Minimum score 0/6 = 0% 4/6 = 66% 5/6 = 83%
Maximum score 3/6 = 50% 4/6 = 66% 6/6 = 100%
40/60/80 score 40% 60% 80%
If this category had 12 questions, such as Ethics in the example above, the scores change again.
Accurate view (for Ethics, 12 questions, Level III example):
Score category <=50% 51%-70% >70%
Minimum score 0/12 = 0% 7/12 = 58% 9/12 = 75%
Maximum score 6/12 = 50% 8/12 = 67% 12/12 = 100%
40/60/80 score 40% 60% 80%
All our analyses use the accurate view
generated for our calculations for each

Band scores divide all failing
individual category, each individual level, each
candidates into 10 categories,
with Band 10 being closest to a individual exam year. A lot of work? You bet it is.
pass.
This is also why you may find small differences
if you use the ‘simple’ set of assumptions.
What do the ‘bands’ mean?
In your results email, you will receive a pass / fail grade. In the case of a Fail, you also get an additional
Band 1-10 score. Band scores divide all failing candidates for that particular exam into 10 categories,
with Band 1 being the furthest away from a pass, and Band 10 being the closest to passing.
The differences between bands are not made public, but they are naturally a function of how close the
distribution of scores of failing candidates are. For our analyses we also always include an assessment
of how close these band differences were for each exam. This will give a better indicator for failing


candidates as to exactly how far from passing they got to this time (in terms of % or number of
questions).


Section 1: What are the topics that

matter in each CFA exam level?



Introduction
So what makes a particular CFA topic ‘matter’?
It’s a difficult question to answer at first, and of course the traditional answer should be that ‘they all
matter’. But from a pure pass-the-exam perspective, some topics do matter more than others.
We’ve identified three reasons why candidates should pay attention to a particular topic:
• Because it has a significant weighting in the CFA exam
• Because usually candidates find it challenging to obtain a high score
• Because it’s Ethics (see the “Note on Ethics” in the following section).
We’ve used these guiding principles above to distil the
key areas that each CFA candidate should be focusing From a pure pass-the-exam
their attention to. Follow them well, and you’ll optimize perspective, some topics do
your preparation for the CFA exams.
matter more than others.
What you will learn in this section:
• Which topics matter to your specific CFA Level
• Which topics do candidates perform well or poorly
• Our recommendations on how to group and approach these topics


A Note on Ethics
Ethics is an important subject matter for several reasons:
Highly Transferable Knowledge
Ethics is 15% of Level I, and 10% of Level II and III. Although not the largest section, the topics and LOS
statements on Ethics are very similar across all levels. This means that the information you retain in
Level I will still be exactly applicable in Level III questions. Combine that with the relatively little amount
of time needed to master Ethics and suddenly you have a very effort-efficient topic in your hands. Be a
master of Ethics in Level I, and you'll see benefits throughout the subsequent levels.
The “Ethics Adjustment”
Besides its transferable knowledge across levels, Ethics is also unique in a very important way. The CFA
Institute implements a factor called the 'ethics adjustment' for candidates within the passing score.
Taken from the CFA website:
“The Board of Governors instituted a policy to place particular emphasis on ethics. Starting with the
1996 exams, the performance on the ethics section became a factor in the pass/fail decision for
candidates whose total scores bordered the minimum passing score. The ethics adjustment can
have a positive or negative impact on these candidates' final results.”
This means that if you're a borderline fail, you can be lifted into the passing zone by a strong
performance in Ethics. Similarly, if you were a borderline pass, you could be failed if your Ethics
performance was particularly weak. However, the CFA Institute has stated that you're more likely to be
be 'passed' through ethics adjustment than 'failed'.


Level I topic analysis

The three following charts show how candidates have done across topics in the most recent 4 Level I
exams (Dec 12, Jun 13, Dec 13, Jun 14). In general, performance by topic has been steady across
exams in the past 3 years.
Topic-by-topic breakdown: All candidates in sample
Performance by topic has been steady

across exams in the past 3 years.


Topic-by-topic breakdown: Passing candidates in sample
Topic-by-topic breakdown: Failing candidates in sample


After iterations of discussions and analyzing each topic, we found that the most useful view was
through 3 tiers or approximately increasing difficulty:
• Tier 1: Basic. These are the subjects where candidates tend to do well in. This includes
Ethics, which is an extremely important topic and is shown by the candidates’ performance,
and Equity Investments.
• Tier 2: Advanced. Some topics, such as Alternative Investments and Portfolio management,
can be polarizing. What this means is that there is a high percentage of candidates that do
very well or very badly, with little in
between. Take the time to understand
the underlying principles behind these

Level I topics can be
topics. The other topics in Tier 2 are
grouped into 3 tiers: Basic,
Corporate Finance, FRA and Fixed
Advanced, and Tough
Income.
• Tier 3: Tough. These are the difficult
and often heavy-weighted topics: Derivatives, Economics and Quantitative Methods. Take
care to pay attention to these topics from the start.
Each of the individual topics are outlined in the table below. Use this table as your guiding principle to
approaching your topics in Level I.


The least you need to know:
Tier Topic % weighting Recommendations
Ethics 15%
Key topic areas. Master them early in
Basic Level I to pay dividends later at every

Equity
10% level.
Investments
Alternative
3%
Investments
Alt Inv and Portfolio Management are
Corporate highly polarizing - either candidates
8%
Finance get it, or they do badly in it.
Advanced
FRA 20%
Invest in the time to understand the
Fixed Income 10% subject matter - rote memorisation
will not be of much help.

Portfolio
5%
Management
Derivatives 5% Derivatives questions can be some of
the trickiest you’ll encounter in Level

Economics 10%
I. Quant Methods is a challenging
Tough
topic, but highly important as it
Quantitative
10% underpins a significant amount of the
Methods
CFA material.


Level II topic analysis

In general, strong and weak areas are less distinct compared to Level I - the differences between
candidates seem to have diminished in Level II. The data below is from the past 3 Level II exams (2012,
2013, 2014)
Topic-by-topic breakdown: All candidates in sample
Strong and weak areas are

less distinct in Level II
compared to Level I.


Topic-by-topic breakdown: Passing candidates in sample
Topic-by-topic breakdown: Failing candidates in sample
We’ve not grouped topics by difficulty for Level II. Instead, we’ve split the topics into 2 main groups:
Heavyweights, and Others.


Heavyweights (total weighting 60%)
• Corporate Finance
• Equity Investments
• Ethics
• FRA
Heavyweights are incredibly important for Level II, for 2 simple reasons:
• Together, they are responsible for a whopping 60% of the exam
• These are topics where the passing and failing candidates differ the most in performance
What does this mean? Make sure that you hit these topics with everything you’ve got, and prioritize
these until you’ve gotten them mastered.
Heavyweight topics are

incredibly important for
Level II.


Tier Topic % weight Recommendations
Corporate There is a large difference between

10%
Finance passing and failing candidates in these
topics. Make sure you’ve mastered these
FRA 20% topics when you approach the Level II
exam.
Heavyweights
Equity
20%
Investments Ethics again is key especially with Ethics
adjustments. For more information on
the Ethics adjustment, see ‘A Note on

Ethics 10%
Ethics’ at the start of this section.
Alternative
10%
Investments
Derivatives 10%
Economics 5%
Derivatives, Alt Inv and Fixed Income
Others Fixed questions can be devilishly tricky –

5%
Income practice is key.
Portfolio
5%
Management
Quantitative
5%
Methods


Level III topic analysis

Level III sets a significantly different trend compared to the previous 2 levels, so we’ve taken a different
approach to this section compared to the previous levels.
The essay format, a.k.a. one of the largest factors in
passing or failing Level III. The largest curveball in Level III

The essay format is one
is the constructed response format, better known as the
of the largest factors in
essay format paper in the morning session. Get to know the
passing or failing CFA
format early in your Level III preparation as this will have a Level III.
significant influence on your chances of passing.
Knowing that this is a very important factor, we spoke to Level III respondents of our survey that did
exceptionally well in the essay section, and asked them to share their own preparation and test-taking
tips. The detailed lessons from this can be found later in this book in Section 7.
Instead of focusing on the performance on candidates by topics and questions, the most useful analysis
we carried out for Level III is a breakdown of topics by weighting and format for the past 3 years, as
found in the following chart.
Level III 2011-2013 topics by weighting and question format


Not all topics are created equal. Individual Portfolio Management, including Behavioural Finance and
IPS (Investment Policy Statement), has consistently been the highest-weighted topic for Level III in the
past 3 years.
Topics are not represented equally in the essay or item-set format. When revising topics for Level
III, it is also key to understand which format (item set vs essay) the topic is likely to be tested in. Some
topics such as PM Individual, PM Institutional and Derivatives are often concentrated in the essay paper,
whereas topics such as Ethics and Alternative Investments typically are found in the item-set paper.
• Make sure you focus on Individual Portfolio Management and IPS-type questions. (A great
IPS discussion on the 300 Hours forum can be read at go.300hours.com/sophieips)
• Ensure that you know what format (item-set vs essay) that each topic is likely to be tested in
and practice accordingly.
• Get familiar with the essay format as early on in your exam prep as possible.
Not all topics are the

same in Level III, both
in weighting and
format.


Section 2: How large are the

differences between failing bands?



Level I failing bands

If you failed a CFA exam at some point, you might have wondered exactly did your failing band mean.
How far were you from passing?
From observing the Level I data across 2012 to 2014,

The average difference
the average percentage difference between bands is between Level I failing
about 4%, or about 9 questions in the Level I exam. bands is about 9 questions.
This means that if you got a Band 7, you were on
average 9 more correct questions away from being in
the same point in Band 8.
We’ve now collected data across 4 different Level I exams – results have been consistent across exams.
The chart for Level I band differences is shown below.
Level 1 band difference: 3.8%, or about 9 questions between bands


Level II failing bands

The percentage differences between failing bands are much smaller compared with Level I. For Level I,
the difference between bands was about 9 questions. In Level II, the difference between bands is only
about 3.5%, or 4 questions.
This means that assuming you were around the mid-point of your band, you were just a few questions
away from reaching the next band.
Level 2 band difference: 3.5%, or about 4 item set questions
Why do so few questions separate the bands compared to Level I? Two reasons:
Reason #1: Competition is fiercer. The variation of quality between Level II candidates is also much
lower compared to Level I. Remember, all Level II candidates would have already passed Level I, so the
more casual candidates would have been weeded out already.
Since the bands are defined in relative terms (e.g. Band 10 meant you are in the top 10% of failing
candidates and so on) this would mean the differences in bands would be much smaller. We see this
intensify further in the Level III analysis.
Fiercer competition and less Reason #2: Less questions, therefore worth more
questions lead to a closer points. There are less questions in Level II compared
failing band difference in to Level I (half, actually), so even if the percentage
Level II.


differences remain the same, the number of questions between bands would be halved. Questions are
worth more, so pay closer attention.


Level III failing bands

The band differences continue to establish the Level III exam as competitive. Very competitive.
The differences in bands are very, very close in Level III.
Just 1.57% on average separates each band, which is the
equivalent of 1-2 questions in the item-set, or 6 essay points. The differences in Level
That's the difference that could push you from Band 9 to III failing bands are
Band 10, and so on. very, very close: 1.7%
on average.
The competition is obviously the hottest at Level III. At the
last level, there are very few 'casual candidates'. These guys
are nearly at the peak of Everest, so they're going to plant the flag, or die trying. That's probably why
there is such a small difference between bands (and passing/failing).
The following graph shows the band difference estimation for Level III illustrated by the dark blue line
(2013) and the grey line (2012).
Level 3 band difference: 1.7%, about 2 item set questions or 6 essay points
We can see (perhaps expectedly) the band differences become smaller and smaller as we progress up
the levels. This is shown in the following chart – note that the slopes of the line graphs decrease with
each level, indicating a smaller difference across failing bands.


2012-2014 average exam band differences: Levels I, II, III
The Level II line, while not significantly decreased in gradient compared to Level I, is significantly higher.
This shows the increased level of difficulty in the Level II exam compared to Level I. The sharp
decrease in gradient in the Level III line again highlights how close-scoring candidates are in the Level III
exam.
CFA failing bands on the whole are set incredibly close. Quite often, just one or two questions separate
you from the next band. So if you’ve failed, take comfort in the fact that you’re likely to have been
much closer to passing than you’d probably thought based on your failing band.
Quite often, just one or two questions

separate you from the next band.


Section 3: What is the estimated

Minimum Passing Score?



Introduction, and a few important points

Before we dive into the details - a very important reminder to you, as a candidate. Do not use the
Minimum Passing Score (MPS) as a benchmark to aim
for in your prep. Aim to beat 70%, not the MPS. For
more information, see the “Getting Started” section.

The MPS numbers in this
section are from our
deductive analysis, not the
Another very important point - the MPS numbers we
CFA Institute.
talk about here are from our deductive analysis and is
in no way endorsed by the CFA Institute. The CFA
Institute does NOT release MPS figures (which is the point of our analysis in the first place) so if you’ve
got questions about the MPS estimates in this guide, do get in touch with us, not the CFA Institute!
• A base idea of how challenging the actual exam will be based on our estimated MPS levels
• How the estimated MPS has trended over the past years
• How the MPS changes across CFA levels


The MPS vs ‘pass rates’

The MPS, as detailed in the introduction of this guide, is the minimum score determined at each CFA
exam to be given a pass. Beat the MPS, and you pass. The MPS is never officially released by the CFA
Institute and varies across levels and years.
The pass rate is the percentage of passing candidates of all attending candidates for any given CFA
exam. This rate, on the other hand, is released every year by the CFA Institute on results day and is
notoriously low.
In this section we’ll refer to both MPS and pass rates in our tips and recommendations - make sure you
know the difference!
Estimating the MPS

The following chart shows how an estimate
for the MPS can be calculated. The chart
shows a visual representation of every
candidate submission in a particular exam and

MPS and pass rates are not
year, as a single green (passing candidate) or
the same thing – make sure
red (failing candidate) vertical line. The top of you know the difference!
the lines are the maximum possible scores for
each candidate, and the bottom of each line
are the minimum possible scores.
Triangulating maximum, minimum and pass/fail grades gives us a range of possibilities where the MPS
could lie. Given enough data points and enough performance difference between candidates, we can
deduce what the MPS is.


Estimating the MPS example – passing and failing candidates
Level I MPS analysis

This edition, we’ve collected quite a few data points for the CFA Level I exam to be able to look at
trends in the past few years. The estimated Minimum Passing Scores for the past five Level I exams are
as below, compared alongside their published pass rates. Remember, MPS is the score needed to pass,
and the pass rate is the percentage of candidates that passed that exam out of those who attended.
Level I estimated MPS and pass rates, Jun 2012 to Jun 2014
There is a clear inverse correlation between our estimated MPS and official pass rates. This is not
unexpected – lowering the MPS makes it easier for candidate to pass.


In the past two Level I exams (Dec 2013 and Jun 2014), the estimated MPS has dropped a fair bit
compared to the previous three exams (Jun 2012 to Jun 2013).
However, to be assured of a pass, we would still strongly recommend that you aim to exceed a score
of 70% when attempting practice exams to have a reasonable chance of passing. The actual exam MPS
is unlikely to exceed 70% in any given year.
• MPS estimates for Level I are around 56-64% in the past 3 years
• However you should aim for >70% in practice exams
The estimated MPS has been

declining over recent years,
inversely trending with official
pass rates.


Level II MPS analysis

Level II estimated MPS and pass rates, Jun 2012 to Jun 2014
The Level II MPS levels average higher than Level I. This means that not only is it generally a more
difficult exam due to the wide variety of topics covered, but it also usually requires a higher score to
pass.
This reinforces advice that Level II is significantly more difficult than Level I. If you’re a new Level I
candidate, do not assume that Level II will be a similar experience to Level I. Prepare harder, and aim
higher.
The estimated MPS has been fairly steady, but has increased slightly in the past year, alongside the
passing score. This may suggest that the standard of the average Level II candidate has increased.
• MPS estimates for Level II are around 63-67% in the past 3 years
• This is a higher and more tightly clustered range than Level I – meaning more consistently
challenging!


Level III MPS analysis

Level III estimated MPS and pass rates, Jun 2012 to Jun 2014
Level III Minimum Passing Scores are a lot more difficult to estimate.
The reason for this is that the constructed response AM section format and results categories yields a
wider range of minimums and maximums for each submission, making it significantly more difficult to
estimate an exact MPS.
Another reason contributing to the difficulty in estimating the Level III MPS is that the standard between
passing and failing Level III candidates are very close. For more evidence on the close performance
levels between passing and failing Level III candidates, see section 2.
Hence in the Level III section we’ve presented our MPS estimates in the form of ranges. The deduced
ranges of the Level III MPS for the past 3 years is shown in
the following chart.
For the Level III MPS estimates, as with the Level II The Level III MPS is
estimates we were able to deduce a more accurate range lower than the MPS
for 2013 compared to 2012, with an increased sample size. for Level I & II.
The 2013 Level III MPS was deduced to be in the range of
53-65%.


The upper part of the range for the Level III MPS estimates have been in the range of 65-68%, which
really emphasizes the need to maintain a high score in your practice exams to maximize your pass
chances.
However a significant issue for almost all candidates is the morning constructed response paper, better
known as the ‘essay’ paper. More information on how to approach the essay paper can be found in
Section 7.
• Level III MPS scores are difficult to estimate, but the upper ranges are fairly close to 70%
• Candidate competition is fierce at this point
• The essay section has to be mastered to pass, and cannot be ignored


Section 4: When should I start my

CFA study preparation?



Introduction
In our CFA Results Analysis (go.300hours.com/analyze) we include an optional question in our research,
asking candidates for the month they started their CFA studies.
By including this question, we can better learn how early preparation can influence pass rates, and
therefore better inform future candidates on when is the best time to start preparing. We’ve also cross-
analyzed responses with results to investigate if there is a correlation between start times and exam
performance.
• When are the most popular start times for CFA candidates
• How start times vary across CFA levels
• Our recommendations on when to start for each level
We investigate when the majority of

candidates start their CFA prep and
how this varies across exam results.


Level I
The following chart shows the candidate samples for the Level I exam by the month that they started
their CFA preparations respectively, across December and June exams in 2013 and 2014.
Level I study start months, 2013-2014
From the chart, it’s clear that the majority of candidates start their studies in January or February for the
June exams, directly after the December holiday period. This gives an average of 4-5 months of study
for the June exam: on 300Hours.com we recommend our readers to start after December for the June
exam.
For the December exam, start dates are more spread out. A sensible start month would be June or July,
however the spread across June to September is probably due to summer holiday seasons in many
countries.
There are small differences between passing and failing candidates, but on the whole they are
negligible. Make sure you start on the early side of the sample, but starting early isn’t a guarantee to
pass, it’s how you choose to spend your time that counts.
• If taking the June exams, recommended start in January
• If December exams, recommended start in June / July, but holiday season tends to influence
many candidates
• Starting earlier does not significantly influence pass rate chances


Level II
The following chart shows the candidate samples for the Level II exam by the month that they started
their CFA preparations respectively across the 2013 and 2014 exams.
The overall Level I candidate sample for the June exams 2013-2014 is also shown here for comparison.
Level II and Level I study start months, 2013-2014
Again, a similar pattern to Level I is observed. A slightly
higher proportion of Level II candidates now start in
January and February compared to Level I. Again, there is

Level II candidates start
almost no difference between passing and failing
slightly earlier than Level
candidates, and Level II candidates start earlier on
I candidates.
average compared to Level I. This difference is especially
noticeable in the ‘late’ months (March to May).
• The recommended start is still January, same as Level I June cycle
• More candidates now start in Jan-Feb rather than later
• Starting earlier does not significantly influence pass rate chances, however for Level II you
will have to step up your effort in the same time period


Level III
The next chart shows the 2013-2014 Level III candidate sample start months. The overall Level I & Level
II candidate sample is also shown here for comparison.
Level III study start months with Level I and II comparison, 2013-2014
The trends we saw in Level II continue - Level III candidates start even earlier than Level I & II
candidates, with the majority of them now having a strict start in January. There is also a significantly
higher proportion of candidates starting in the year before.
This drives home our constant recommendation to our readers that starting early is key - many
candidates underestimate how much material there is to go through, and by starting early you can get
an early warning on this. Again, for the June exams we recommend that you start in early January, and
June if you’re taking the December Level I exams.
• As you progress up the levels, the stricter you need to be with your start date
• January is by far the most popular start month for Level III
• Quite a few candidates start in Sep-Dec the previous year


Section 5: How many practice
exams should I aim for?
!



Introduction
Readers at 300Hours.com know that one of the most important aspects to preparation is setting aside
enough time for practice exams. Completing as many practice papers as possible is one of the most
sure-fire ways to improve your chances at passing.
But how many is enough? As charterholders, we know what worked for us, but is that really enough
data to conclude? We asked the thousands of candidates that submitted their results to estimate how
many mock and practice exams they attempted, to be able to provide solid recommendations for you.
• Average number of practice exams attempted by candidates across levels
• How the number of practice exams differ across CFA levels
• The correlation between the number of attempted practice exams and CFA exam
performance
• The minimum number of practice exams you should be attempting for your exam


Average practice exams attempted, by grade &
CFA level
From our analysis, it is very clear that CFA performance correlates strongly to the number of
completed practice exams.
Another important observation is that the average number of practice papers completed also increases
across Level I to III. The chart below shows the average number of practice papers attempted by grade
across all CFA levels.
Practice papers completed by result, Level III, 2013-2014
You can see that failing candidates consistently attempt less practice exams than passing candidates.
Furthermore, there is a very clear correlation between the number of attempted practice exams and
performance.
Level II candidates on the whole attempt nearly an entire extra practice exam compared to Level I
candidates, and passing Level III candidates attempt more than 6 full AM and PM sessions. This
corresponds with our research on the Level III essay paper in Section 7, where ‘more practice exams’
was overwhelmingly the dominant advice given.


Distribution of # practice papers

The first chart shows the distribution of practice papers completed for the June 2013 Level I candidate
sample, with one practice paper defined as both AM and PM papers combined.
Distribution of # practice papers completed, Level I, 2013-2014
From the chart, there is a clear difference between passing and failing candidates. Passing candidates
on average complete more practice papers than failing candidates: one whole practice paper extra on
average.
Distribution of # practice papers completed, Level II, 2013-2014


Distribution of # practice papers completed, Level III, 2013-2014
For Levels II and III, the same basic observation from Level I holds true - passing candidates on average
completed one extra practice paper compared to failing candidates.
The quick lesson from this section and the previous section is therefore simple: to pass, start early and
practice often, and increase your efforts even more with each CFA level. Use this guide to inform the
minimum amount you should be aiming for.
• Average practice exams completed by the passing candidate is about 4.2 for Level I, 4.9 in
Level II and 6.2 in Level III
• Passing candidates consistently complete significantly more practice papers than failing
candidates
• You should at least attempt 4 full practice exams for Level I, 5 for Level II and as many as
you possibly can for Level III, especially for the essay session
Passing candidates consistently

complete more practice papers
(4.2 in L1, 4.9 in L2, 6.2 in
L3)


Section 6: How important is

having a background in finance?



Introduction
Knowledge of finance is useful, but the largest factor to failing the CFA exam is complacency.
Using our candidate results database, we can cross-reference exam performance with work and
education backgrounds.
We asked candidates as they submitted their results whether their work and education background was
finance related or otherwise. The results in this section will be able to inform current candidates if their
background has any influence on their CFA exam performance – some conclusions can be quite
unexpected!
• How does a background in finance influence CFA performance
• What candidate backgrounds perform poorly
• Our recommendations depending on your own background
In this analysis, we cross-reference

exam performance with work and
educational backgrounds.


The influence of a finance background in Level I

Sample by work and educational background, Level I
In our analysis, we then cross-referenced exam pass rates with these 4 background profiles:
• Work & Edu: those with financial backgrounds in both work and education
• Work only: those with financial background in work but not education
• Edu only: those with financial background in education but not work
• No background: no financial background in either work or education
4 background
profiles were built
across all CFA
candidates.


The results were interesting and a bit unexpected: the following chart shows the result for the Level I
candidates in December 2013 to June 2014
Pass Rate by Financial Background, Level I (2013-2014)
The group of candidates with both work and education backgrounds in finance are best-placed to do
well in the CFA exams, followed by candidates with finance-related work, but a non-finance education.
This shows that work experience in finance is strongly relevant to good CFA performance. There are a
few possibilities for this – candidates could be using financial knowledge gained at work in the exam, or
have a stronger drive to perform better due to direct benefits from the CFA qualification.
Educational background surprisingly does not have much correlation to CFA performance. In fact, in
June 2013, candidates with no work or educational finance backgrounds even outperformed those who
had a finance education. This may be demonstrating a higher level of determination by candidates
trying to break into finance.
There is no doubt that having some pre-education in finance helps CFA exam performance. In the case
of the ‘edu only’ group, complacency may be the issue. Anecdotal feedback we’ve collected indicates
that candidates with finance or economics degrees may tend to regard the CFA exams more lightly
than other candidates. Additionally, without a work requirement to spur them on, candidates may find it
difficult to maintain the drive and discipline necessary to complete their preparations properly.


• Candidates with financial work experience tend to do well in Level I
• A financial educational background doesn’t improve your CFA performance
• A financial background is far from a prerequisite for success in the CFA program


The influence of a finance background in Level II
Sample by work and educational background, Level II (2013-2014)
Pass Rate by Financial Background, Level II (2013-2014)
In Level II, not only did the group of candidates with no financial background outperform the candidates
with financial education, but they were also the best-performing group of all. This result was consistent
across the 2013 and 2014 exams. However, it is challenging to definitively find out why exactly do
candidates with no financial background do well in Level II.


The groups with finance-related work experience were still high performing. The group with only
finance-related education were the lowest-performing group.
• Candidates with no financial background were the best performers in Level II for 2013 and
2014
• Financial work experience is still a strong contributing factor to performance in Level II
No-background
candidates were the best
performers in Level II.


The influence of a finance background in Level III
Sample by work and educational background, Level III (2013-2014)
Pass Rate by Financial Background, Level III (2013-2014)
A similar pattern to Level I can be observed in Level III. Candidates with financial work experience
consistently performed better than candidate groups without financial work experience.
Similar to Level I, financial education doesn’t seem to be a significant factor in performance
improvement.


However, the differences in pass rates between groups are now very small (about 5% compared to
10% in Level I), which again shows the high quality of candidates and intense competition in CFA Level
III.
• Financial work experience is consistently a strong contributing factor to performance across
all levels
• Differences between groups start to diminish in Level III
Financial work experience is consistently

a strong contributing factor to
performance across all levels.


Three important lessons from our financial
background analysis
1. Just because you haven’t any finance background doesn’t mean you’re hugely
disadvantaged. Your drive and determination is an important asset in the CFA exams, and
anyone can have.
2. A finance-related education doesn’t necessarily equate to a better CFA exam performance,
most likely due to complacency. The CFA exams are challenging, quite likely tougher than
any exam you’ve had so far. Do not assume a background in finance will enable you to take
it easy in your preparation.
3. Some CFA levels may suit you more than others. Depending on what you’re best at and your
contextual knowledge, you may find some CFA levels easier than others as the approach and
content vary significantly, especially in Level III.
Just because you haven’t any

finance background doesn’t mean
you’re hugely disadvantaged.


Section 7: How can candidates

better address the Level III essay
section?



Introduction
A very important success factor to passing Level III is performance in the constructed response session
in the morning, also known as the ‘essay format.
Besides being a completely new format to
CFA candidates from Levels I and II, it is a
session that candidates consistently perform We reached out to the best

poorly in. That is why this section specifically performers in the Level III essay
focuses on the essay session, and how to exam to gather their tips.
approach it effectively.
What is the ‘essay’ format?

What is referred to as the ‘essay’ question format is really a constructed response format in the
morning paper. Questions are more open-ended and candidates are required to show workings for
calculations and other reasonings.
This does not mean that questions have to be answered in the traditional essay sense. In fact, short
bulleted answers work best - as long as the answers are the right ones!
Learn from the experts

In our analysis, we found out that an extremely high majority of candidates did poorly in the essay
paper compared to their item-set paper – more than 80% of candidates in our sample performed worse
in their essay session across the 2012 to 2014 exams.
We reach out to the best-performing candidates in the essay paper (i.e. those mostly scoring in the
>70% bucket) and asked them for secrets to their successes. Several themes emerged quite clearly,
and we present the findings in this section.
• What are the main advice themes from successful candidates in the essay session
• How to effectively prepare for the essay format
• What traps to watch out for when answering essay questions


Lesson #1: Practice, practice, practice
Overwhelmingly, many responses stressed the importance of practice in some shape or form.
Even in the earlier levels of your CFA preparation, we’ve stressed on 300Hours.com the importance of
practice exams to ensure familiarity with the scope and format of CFA questions. Level III is no
exception, and with the new format it seems that practice is more important than ever.
This also correlates with our practice exam
findings in Section 5 – Level III candidates
attempt the most practice exams compared to Overwhelmingly, many responses

other levels. stressed the importance of practice.
Here are what some of the top performers
from the 2013 and 2014 Level III exams had to say about practicing and its contribution to their results.
• “Practice the mocks until you are better at predicting what answers will get you the most
points.”
• “Do the CFAI supplied mock/sample exams repeatedly. Even though you’ll get to know the
questions inside out, you’ll get to know the writing style they’re looking for and it’ll seep into
the way you answer questions.”
• “For the IPS questions, do not walk into the exam room without having solved at least 10
each (Individual and Institutional).”
• “I did 9 or 10 timed practice exams and for each one included an essay paper.”
• “Even if I can't finish my revision in time, I will start doing my practice exams at least 1 month
before exams. This is to let you know, from a "answering questions" perspective, what you
are weak in and for you to focus more during your subsequent revisions.”
• “…doing more practice papers is important this time because the essay questions are much
more varied so any one paper is no longer as representative of what you may face on the
exam as it was for L1/2.”
• “I went through over a dozen essay practice exams ranging from old CFA tests and various
3rd party providers. I also went through these exams multiple times carefully grading them
as well.”


• “Between Schweser materials, CFA mocks, and prior year exams I ended up taking around
10 full (AM+PM) exams.”
• “Study more than you think you need to…and then study some more after that.”


Lesson #2: CFA Institute past-year exams are your
best friends
Although CFA Institute does not release past papers for CFA Level I and II, they do have past papers for
Level III essay questions, with corresponding model answers. This is usually downloadable in the
‘example questions’ part of the CFA Institute website.
You have to be utilizing this as much as you can. Past year papers are the closest representation of the
real thing as you’re going to get, and nothing is more uncertain than the essay format. At the very least
you should be going through each and every
past paper question and model answer before
your own Level III exam.
“…doing all of the previous

• “One thing for certain though is (that) exams is the best way to learn
doing all of the previous exams is the the style in which CFA
best way to learn the style in which
(Institute) wants answers.”
CFA wants answers.”
• “I probably did each exam from 2007-
2012 at least 5 times.”
• “Just like any other CFA exam, the more practice papers you can do the better. It surprises
me that some candidates don't look at the past exams the CFA Institute releases. I thought it
was a given that you'd do that but I don't think everyone does.”
• “Had saved up 5 years worth of prior (Level III) CFA exams by downloading all samples each
year during Level I and II. Did one of those a week starting 7 weeks prior to exam.”
• “Practice cfa grey box multiple times. Do as many old am exams as possible.”
• “Exam practice for the AM session is absolutely key. Do not ignore the past exams that the
CFAI provides! Do them all, twice or three times, over the course of your study.”
• “Do every single CFAI morning paper you can find.”


Lesson #3: Take and grade exams as realistically as
possible
Questions in the essay section vary widely in length and points. The model answers also can be initially
challenging to get used to, compared to the multiple choice answers you’re used to from previous
years.
It’s therefore super important for Level III Simulate exam conditions, timing
candidates to especially make sure they and grading.
complete their practice exams under as
realistic exam conditions as possible.
Impose the exam conditions (no music or snacks), the right exam time limits, with no pausing the clock
for breaks, and be strict with your grading after you’ve completed the practice exam.
Here are what some of the Level III performers had to say:
• “Write your answer as if it was exam day.”
• “Read the actual CFA material and take as many practice exams as possible in a timed
setting.”
• “Do lots of morning mock exams, under timed simulated exam conditions as much as
possible.”
• “When practicing, strictly stick with the given time limit per each individual question. No
cheating or assume to steal time from other easier questions. If you can’t solve it, then
practice giving the best guess and move on.”
• “Mark yourself very harshly on practice tests. If you have to think whether your answer fits
the template answer, mark it wrong.”
• “There is no better way to prepare (for the exam) than by actually writing AM papers under
exam conditions.”
• “Be conservative with grading, only give points when you hit exactly what they have in the
rubric.”
• “No cheating on self-grading; if not written out clearly, give zero points.”
• “Do not underestimate the time pressure of the constructed response part of the exam.
Organize your practice exams to mimic real exam like circumstances to gain confidence and
routine in the pressures of the exam.”


Lesson #4: Train to keep ahead of time

Sophie, one of the writers on our team, completed her CFA in 18 months straight. She was also one of
the many candidates struggling for time in her Level
III exam. For more details on her Level III
experience, visit go.300hours.com/sophielevel3.

Time management is one of
the key challenges in the Level
With the huge variation of points and unclear
III morning exam.
expected length of your answers, time
management is definitely one of the key challenges
in the Level III morning exam.
Some quick pointers:
• Always use short, to-the-point answers
• Use bullet points to quickly get your points across
• Use the number of points allocated to each question to roughly estimate how
comprehensive your answer should be
• Check if the question includes an answer template – use it if it does!
Here are more tips, directly picked from Level III candidates’ comments:
• “Always use short sentences/bullets. One sentence per mark will suffice. Any more is time
wasted. Always read the question; failure to read the question can result in wasted time.”
• “The essay portion is the hardest. You are under significant time pressure, so you can't
afford to spend more than the allocated time answering a question.”
• “Focus on practicing the essay questions - they are not difficult material-wise but the small
amount of time on the exam kills you.”
• “There will be questions you can't answer. Move on, finish everything you know and come
back.”
• “It is imperative that you learn to do the individual and institutional IPS and required return
calculations in a timely manner.”
• “Answer to the point, work fast, use shortforms.”
• “Running out of time seems to be the biggest problem for most of the people I talked to
after the morning session. Keep track of time per question carefully during the actual exams.
Since each question is given a different amount, many people I know skipped around many


questions and lost track of how much time left vs. the remaining questions, not realizing that
until the last 30 mins.”
• “In the end, its not only about knowing the material, but putting it down in a quick and time
saving manner. Aiming for perfection on exam day is a luxury few can afford. Taking too
much time to write the perfect answer to get full credit in essay questions is not a good
idea.”
“Answer to the point, work fast, use

shortforms.”


Lesson #5: Research the essay format questions
and answer sheet thoroughly

The essay format will be new to you if you’re taking Level III for the first time. So it’s no surprise that
the candidates that did best in it took the extra effort to research and understand the CFA essay format.
Familiarize yourself with the format early in your preparation. Make sure you understand how the
answers work: some have a free-text field, while others may utilize a template or a table.
Make sure you identify the right answer template
to be writing your answers in: candidates often “Look at the essay format before
mistake tables in the questions for answer you do anything else for Level
templates and fill them up, but as it isn’t in the III.”
answer template they receive zero points.
Speak to past candidates on how they found the format and what the challenges are, look through
YouTube for videos explaining the CFA essay section. Many candidates recommended an instructional
video by David Heatherington, which is free to access at go.300hours.com/level3video.
In essence, spend a little time researching the format, and it will go a long, long way.
• “Understanding what you’re up against is so crucial. Look at the essay format before you do
anything else for Level III.”
• “...look when a template is being provided and make sure to use it.”
• “Really get to grips with what the finished answer should look like - find some videos, talk to
people who have passed, and if you can find a former marker of the exams (as I did), that's
even better.”
• “Start by writing down and labelling the relevant points from the text. Then I would clearly
state what I was doing in terms of calculations, writing down the answers from each step.
Finally, when I got to the answer, I would label it clearly, stating exactly what it was meant to
show - from what I've heard, a lot just write down the starting information and then the
answer. I was very careful to state exactly what each step was showing.”
• “Keep answers very concise. Answer only what is asked. You don't need to complete
sentences, phrases are fine.”


• “For the most recent AM papers, pay close attention to what they asked and how it related
to the content of the curriculum. Some of it was straight out of the book, while much of it
was proper application of the curriculum.”


Frequently Asked Questions
?



What was the sample size used for each level?
We established a cut-off point for submissions several weeks after the results were released. Each
annual sample size per level is about 2,000 to 3,000 unique, checked submissions.
How did you address duplicates and fake submissions?
A fundamental piece of how we decided to address duplicates and fakes was through a very simple
mechanism - email addresses. If every
submission included an email address we could
very simply treat it as a unique identifier to spot

We use algorithms and manual
80% of duplicate cases, and fake email addresses
inspection to weed out duplicates,
automatically detected as fake entries. We also
fakes and bad submissions.
developed an algorithm to detect abnormal
results. These are flagged for manual evaluation.
Once all this is done, we also inspected the entire sample manually to make sure the data is as clean as
possible.
Where do I go to submit my result and obtain my personalized calculation?
Go to go.300hours.com/results to get your results breakdown. Using the same methodology for this
analysis, we will calculate these scores and instantly get them to you:
• Minimum theoretical score: This is the minimum score possible for your level based on the
results categories you scored in
• Maximum theoretical score: This is the maximum score possible for your level based on
the results categories you scored in
• 40/60/80 score: This is a purely assumed number, which assumes a mean score of 40% if
you scored in the 0-50% category, 60% if you scored in 51%-70% category, and 80% if you
scored in the 71%-100% category.
For more details on the theory behind these scores, see our “Getting Started” section.
How do you calculate the MPS of each level?
Since the theoretical maximum and minimum scores can be calculated for each result breakdown, given
enough data around the Band 10 failures and passing score, a range of possibilities can be deduced,
which becomes more accurate as the sample size increases.



Triangulating maximum, minimum and pass/fail grades of all qualified submissions gives us a range of
possibilities where the MPS could lie. Given enough data points and enough performance difference
between candidates, we then would be able to deduce the MPS value of each level.
For more details on methodology, see Section 3.
How sure are you that the MPS for each level is correct?
We’re pretty sure, to be honest. We don’t focus on this too much on 300Hours.com as CFA Institute
frowns on making the MPS a key focal point. We agree with CFA Institute on this – candidates should
always aim to beat 70% when prepping. But as past candidates we also understand the curiosity around
the MPS!
If we can take the assumption that the score categories (0-50%, 51%-70%, 71%-100%) are indeed
exactly what CFA Institute say they are, then given enough samples the conclusion will be solid. The
closer the difference between candidates, and the wider the individual minimum and maximum scores,
the more challenging it is to deduce an exact number, which is why the range becomes pretty wide in
Level III.
I compared maximum, minimum and 40/60/80 scores with my friend. We had similar scores, but
yet one of us passed, and another failed. How is this possible?
The maximum, minimum and 40/60/80 scores, while good relative indicators, are obviously not your
actual score. It’s perfectly possible for two candidates to have exactly the same results breakdown (as
provided by CFA Institute) and still have one that passed and another that failed, as there is a range of
possible actual scores.
It would be interesting to see a breakdown by number of hours studied, or another idea I’ve
thought of.
We were pretty strict this time on keeping the survey as short as possible (makes it easier for you!). We
felt that ‘number of hours studied’ was too subjective a number (as it would be based on candidate
recollection) to have any solid conclusions.



However, if you have a cool idea you want us to check out for next time, just email us at
[email protected]!
Given the back and forth about Ethics - what is the conclusion? Should I or should I not focus on
Ethics?
The answer to whether you should focus on Ethics is simple - yes! What the analysis is pointing out is
that some candidates overfocused on Ethics - they score well in Ethics but everything else let them
down. The lesson from this is to recognize when you’ve done enough on Ethics, and make sure you
focus on the big topics for your particular level.
I failed. This is so frustrating…
It is frustrating. A few of us have experienced this, and the important thing is to use that experience to
increase your drive to do better! It is not a great experience to not be handed a pass, and if you’re
feeling a bit lost, read more about what you can do at go.300hours.com/revenge.
My 40/60/80 score is higher than your stated MPS! I think I’m owed a pass.
Not necessarily. Your 40/60/80 score is based on pure theory and is not representative of your actual
score. The MPS calculations, while solid in our opinion, is not acknowledged nor affiliated to CFA
Institute. Please don’t use this as a basis to argue for a pass. It won’t work, and CFA Institute won’t be
pleased with us. Don’t do it.
I have another question, or a suggestion.
Let us know at [email protected], or drop by our Forum at forum.300hours.com!



About 300Hours.com
300Hours.com is one of the most-visited CFA resources on the web, and 100% free for readers.
Our mission is to provide CFA candidates and charterholders get the best advice and knowledge to
maximize their efforts in the CFA process.
The 300 Hours site updates regularly with fresh posts with top tips throughout the CFA preparation
cycle. The site covers crucial study advice, product reviews, offers and an active forum where you can
post any CFA question you may have, answered by charterholders and fellow candidates.
The team is usually based in London, UK, but also regularly visits cities across Europe, North America
and Asia. We come from a variety of backgrounds, so between us we have a wide range of experiences
prepping and passing the CFA exams.
Collectively the team has experience in investment banking, corporate finance, insurance, financial
services, management consulting, advertising and technology.
300hours.com facebook.com/300hours
forum.300hours.com twitter.com/300hours
linkedin.com/in/christinehmartinez

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CFA® Exam Insights

Proven CFA exam advice and guidelines

Copyright 2014 by 300 Hours. All rights reserved.

without the express written permission of 300 Hours.

owned by CFA Institute.

Learn more at 300Hours.com 2 Copyright © 2014 300 Hours

Section 2: How large are the differences between failing bands? 25

Section 3: What is the estimated Minimum Passing Score? 31

Section 4: When should I start my CFA study preparation? 39

Section 5: How many practice exams should I aim for? 44

Section 6: How important is having a background in finance? 49

Frequently Asked Questions 69

Learn more at 300Hours.com 3 Copyright © 2014 300 Hours

An introduction and how to use this book

Learn more at 300Hours.com 4 Copyright © 2014 300 Hours

results collected outside of CFA Institute.

assessment of how competitive the field is, the importance

of your work and education background – these are just a

In simple terms, the Minimum Passing Score (MPS) is the

that passed a particular exam.

performance of the just-competent candidate. In

other words, envisioning a candidate they judge to be

just good enough to pass, they estimate the

take a look at actual candidate performance and the

Learn more at 300Hours.com 5 Copyright © 2014 300 Hours

So I should aim for a score similar to the MPS then?

No. In short, always aim to beat 70%. Always, always, always.

change across papers and years as well.

Where’s my actual score? What do the score categories mean?

• Poor – less or equal to 50%

• Poor to average - between 50% and 70%

• Above average - more than 70%

Your actual score is not released by

Learn more at 300Hours.com 6 Copyright © 2014 300 Hours

team, with some details changed:

Dear So and So,

outlining your strengths and weaknesses, are in the table below.

Again, congratulations on your achievement.

John D. Rogers, CFA

President and Chief Executive Officer

1 Portfolio Management - Individual 15 * - -

2 Portfolio Management - Individual 23 * - -

3 Portfolio Management - Institutional 26 - * -

5 Portfolio Management - Asset Allocation 20 * - -

6 Fixed Income Investments 19 - * -

Learn more at 300Hours.com 7 Copyright © 2014 300 Hours

Portfolio Management - Risk

Portfolio Management – Performance

- Ethical & Professional Standards 36 - - *

- Fixed Income Investments 36 - - *

- Portfolio Management - Execution 18 - - *

- Portfolio Management - Individual 18 - - *

Portfolio Management - Risk

Results section (go.300hours.com/results) is for.

that didn’t show up. Right?

Learn more at 300Hours.com 8 Copyright © 2014 300 Hours

I entered my score into go.300hours.com/results. What do the calculated maximum, minimum

and 40/60/80 scores mean?