My first impression after the last year's (2013) CFA Level II exam was an anger and disappointment. The exam had two very different parts for me that could be described as a morning hope and an afternoon disaster.
During the morning section, I was a bit lack of time but often certain how calculate the most of tasks. I felt fine, focused and quite certain about the results. Maybe, it was connected with the fact that the exam topics in the morning section were more favourable ones for me. Afterwards, I have read on blogs that some participants considered this variant of the exam as one of the most easiest in recent years. However, I would not agree. I think that the difficulty was proper, but the topics tested were more favourable for the most of the participants (generally more popular topics). So, I spent the break with confidence and hope for the good result.
The afternoon section was a very different story. I found the most of tasks very difficult and was not really sure how to calculate them. It was like a nightmare. From the very beginning, after each very difficult uncertain task that I finally, somehow with a lot of effort, concentration and thinking, managed to finish and hoped that the next task will be more comfortable for me, the next one was even more uncertain. In the middle of the afternoon section, I was totally out of confidence and wanted to throw away a pen and leave.
In the both sections, I went through the exam topics from the most important (Equity Investments, Financial Reporting & Analysis) at the beginning to be fresh on it, over the easier topics for me (Corporate Finance, Alternative Investments, Economics, Quantitative Methods) at the middle, to the most difficult for me (Derivatives, Fixed Income Investments, Portfolio Management). I left the Ethical & Professional Standards to the end because I always hated this topic.
But back to the story. After this run of the exam, I was very uncertain about my possible score. Based on my preparatory exams (from Schweser and Mock), I expected the result between 75-85% from the morning section and I have no idea about the afternoon. My overall estimate was 60-70% of correct answers which at a certain constellation could be enough, so I was waiting impatiently for August. The final result did not please me, but it was mostly in line with my expectation. I scored >70% in all three key topics (the most weighted ones), however <50% in three my unfavourable topics and even through these three with the bad result were significantly lower weighted in overall exam, the final result was only in 9th score band.
After the results I talked with two of my friends who passed and the first one said that he had been perfectly prepared, so even if he had found the exam difficult he had managed to handle it. The second one said that he had guessed quickly every uncertain tasks and had not tried to find the solution which saved him time for the tasks which he had been more familiar with.
I would say that my preparation for the exam was quite proper. I started study during January. I attended the study group in Prague created in cooperation with CFA Society and was using mainly Schweser materials. I found a question bank as quite useful. However, it is important to mention that the Schweser materials are slightly different from the original CFA and especially tests and its difficulty are different. Although, I think that the Schweser preparatory tests are much more accurate in questioning (questions are mostly not ambiguous), the real exam (and also the Mock exam) is unfortunately different. I have never scored less than 70% of correct answers in Schweser tests and even 85% in the last a week before the exam (with an average about 76% in all), but I scored only 66% in the Mock and probably something similar or less in the real exam.
I found three things about the exam as very unpleasant. I think that the difficulty of the afternoon section was out of standards, the CFA' questioning is from time to time ambiguous and misleading and the difficulty of morning and afternoon sections was very different. I think that these things should be changed to make the exam more fair.
To sum up, I believe that on the basis on the morning section, I would pass. The afternoon section devastated the entire six-month effort. Definitely, I should have been prepared better and also choose a different tactic (not try to solve all tasks, but guess unfamiliar and have more time for more favourable).
After this disappointment, I was thinking that I will try it once more next year. I have even applied for the CFA Scholarship in September which I was awarded later in December. However, two things led me to the decision not to continue with CFA even if the costs would be significantly lower for me because of the Scholarship. The first was that the result is always very uncertain. I have seen many my friends very well prepared and despite it not pass. If I should invest significant amount of time to something, I want at least some guarantee of the result which I haven't found here. The second is that I do not agree with the way or style of testing. The six hours long exam once a year without the possibility of recurrence (earlier than the next year when you do not remember almost nothing and you have to learn the most of it once more) is not a relevant way of testing skills, knowledge and overall intelligence. It is much more a gamble than test of skills. A very small things even out of your control like a poor sleep the night before the exam, nervousness, workload a week before the exam or traffic jam can easily completely destroy your six-months effort which is much more risk than I am willing to bear.
Few conclusions:
=> preparation tests are not 100% reliable indicators of the final result
=> morning and afternoon sections can be very different in its difficulty and selection of topics
=> it is probably better to quickly guess that try to find the solution for the tasks that you are not certain with
=> do not loose your confidence and concentration because difficult tasks are difficult for everybody.
Good luck to all in the next exam!
Wednesday, July 30, 2014
Monday, August 20, 2012
How I passed CFA Level I
I passed CFA Level I in June 2012 at a first attempt. I am not a native English speaker and have two and a half year experience in a Big4 company in the Valuation department. Based on my experience, I would recommend you following things which helped my to successfully pass the exam:
Before I will describe details about my study, I would like to point out that I used Schweser Notes only. I read several pages from CFA study material, but I found it unnecessarily long. I have never did whole mock exam, neither sample exams. I did all the test questions after each topic in Schweser Notes, but not any from Schweser Notes book of exams (last book of Schweser Notes).
At the beginning, I have read several articles with suggestions how to pass CFA Level I and the key message from almost all of them was than you have to begin on time and proceed according to the schedule (split time for each topic, finish two or three weeks before the exam, review each book, take time for mock and sample exams, etc.).
At that moment, I started to be a little bit nervous because I am not a person who likes to proceed according to some schedule and observe deadlines and I also had not enough time because I was quite busy at work and already had plans for some weekends. Moreover, I have always been used to study intensively during a short time rather than continuously during a longer time period.
Nevertheless, I started to study and tried to study according the suggestion. I prepared a schedule and tried to study according to it. After a month, I read far less than I should have according to the schedule (I should have read 2 books, but I had a half of one). It was clear that I am not able to study according it.
I started to think how to do it and came to the conclusion that I have to study exactly as I am used to from the University which always worked. I have never studied during whole semester. Instead, I have studied intensively few weeks during the exam's time.
Based on this, I decided that I will take a three weeks time off from my work directly before the exam and will study intensively which I did.
Three weeks before the exam, I read only the Economics (during the last two months' weekends) which I started with because it was the most familiar topic for me and relatively weighty in the exam (24 points). I started with the familiar topic because I wanted to feel good that the study goes well to me.
In the first days of my study three weeks, I decided to follow with the Ethics because this topic was the most afraid one for me. So, I wanted to have enough time to it and also relatively clear mind. Moreover, the Ethics is also a second weighty topic in the exam (36 points). I spent three or four days with it.
During three intensive study weeks, I woke up around 8 or 9am and started study after the breakfast till lunch, than I had an hour time off which followed with the second study section till 9 - 11pm with regular breaks after every two or three hours. I also took few longer breaks during all three weeks to go out and meet with my friends that I was not only isolated at home and study.
After that, I started with the Financial Reporting & Analysis as the most weighty topic in the exam (48 points). I spent about four days with it because I was quite familiar with this topic from the University and my work experience. May be, you will need more time to study this topic as it is the crucial one. Subsequently, I followed with the Corporate finance (20 points) which is quite connected with the previous one and I was also quite familiar with it and spent about two days with it.
I was in the middle of my study three weeks and had 6 topics uncovered. I followed with the Quantitative methods (28 points) and spent 3 days with it. I was also quite familiar with it for the University. From the last 5 topics, I started with the two most weighted ones, the Equity Investments (24 topics) and the Fixed Income Investments (28 points). I spent about 6 days with these two switching between them. I was familiar with the Equity Investments, but quite unfamiliar with the Fixed Income Investments.
Two days before the exam, I have read nothing from three last topics and I was not familiar with two of them. Fortunately, these three are not as important in the content of the exam. I spent a day with Portfolio Management (12 points) which I was the most familiar with of these last three.
During the last day, I quickly came through the last two uncovered topics, the Derivatives (12 points) and Alternative Investments (8 points). Finally, I reviewed all the formulas used in all topics which is important to know and came through the morning section of the mock exam.
During the morning part of the exam, I felt quite good but I did not manage to came through all the questions, so I guessed about three last questions. During the afternoon part of the exam, I answered all the questions in time but at the end of the exam (about last 30 minutes), I was very tired and not able to concentrate. After the exam, I enjoyed very good party :)
To sum, I would say that the things that helped me the most to pass the exam were to use my own study style, take time off directly before the exam and do not panic. Based on my experience, .I would recommend you not to be scared to death if you have not come through every single page of CFA materials or have not done the mock exam before the exam because there is still good chance to pass the exam if you understand main topics well.
If I was study once more for the Level I, I would better planned my three study weeks, did whole mock exam and may be tried some sample exam (backward, I think that it is useful to know well the format of the exam) and used CFA study materials for unfamiliar topics rather than Schweser Notes.
Good luck to all Candidates! Do not hesitate to write me if you have questions.
- use your own study style (this is crucial in my opinion);
- take ideally three weeks time off from work closely before the exam to be focus only on the exam (two weeks is a minimum in my opinion);
- study the topics based on its weights in the exam and subsequently based on the subjects that you are the most familiar with (its mainly because you are fresh at the beginning so you will be able to learn the most important topics first and study familiar topics first gives you confidence that you are leaning relatively fast);
- take regular breaks during study day to stay fresh (every two or three hours even if you are out of your schedule);
- if you understand the topic and need only refresh, use Schweser Notes rather than CFA original material (CFA study material are generally unnecessarily long in my opinion); and
- never panic! (yes, there is a lot of study behind you, exam is difficult and long and may be you will not understand every topic well right before the exam, but the situation is the same for others and may be they are missing your unique talent, experience and abilities. So, calm down and believe in yourself!).
Before I will describe details about my study, I would like to point out that I used Schweser Notes only. I read several pages from CFA study material, but I found it unnecessarily long. I have never did whole mock exam, neither sample exams. I did all the test questions after each topic in Schweser Notes, but not any from Schweser Notes book of exams (last book of Schweser Notes).
At the beginning, I have read several articles with suggestions how to pass CFA Level I and the key message from almost all of them was than you have to begin on time and proceed according to the schedule (split time for each topic, finish two or three weeks before the exam, review each book, take time for mock and sample exams, etc.).
At that moment, I started to be a little bit nervous because I am not a person who likes to proceed according to some schedule and observe deadlines and I also had not enough time because I was quite busy at work and already had plans for some weekends. Moreover, I have always been used to study intensively during a short time rather than continuously during a longer time period.
Nevertheless, I started to study and tried to study according the suggestion. I prepared a schedule and tried to study according to it. After a month, I read far less than I should have according to the schedule (I should have read 2 books, but I had a half of one). It was clear that I am not able to study according it.
I started to think how to do it and came to the conclusion that I have to study exactly as I am used to from the University which always worked. I have never studied during whole semester. Instead, I have studied intensively few weeks during the exam's time.
Based on this, I decided that I will take a three weeks time off from my work directly before the exam and will study intensively which I did.
Three weeks before the exam, I read only the Economics (during the last two months' weekends) which I started with because it was the most familiar topic for me and relatively weighty in the exam (24 points). I started with the familiar topic because I wanted to feel good that the study goes well to me.
In the first days of my study three weeks, I decided to follow with the Ethics because this topic was the most afraid one for me. So, I wanted to have enough time to it and also relatively clear mind. Moreover, the Ethics is also a second weighty topic in the exam (36 points). I spent three or four days with it.
During three intensive study weeks, I woke up around 8 or 9am and started study after the breakfast till lunch, than I had an hour time off which followed with the second study section till 9 - 11pm with regular breaks after every two or three hours. I also took few longer breaks during all three weeks to go out and meet with my friends that I was not only isolated at home and study.
After that, I started with the Financial Reporting & Analysis as the most weighty topic in the exam (48 points). I spent about four days with it because I was quite familiar with this topic from the University and my work experience. May be, you will need more time to study this topic as it is the crucial one. Subsequently, I followed with the Corporate finance (20 points) which is quite connected with the previous one and I was also quite familiar with it and spent about two days with it.
I was in the middle of my study three weeks and had 6 topics uncovered. I followed with the Quantitative methods (28 points) and spent 3 days with it. I was also quite familiar with it for the University. From the last 5 topics, I started with the two most weighted ones, the Equity Investments (24 topics) and the Fixed Income Investments (28 points). I spent about 6 days with these two switching between them. I was familiar with the Equity Investments, but quite unfamiliar with the Fixed Income Investments.
Two days before the exam, I have read nothing from three last topics and I was not familiar with two of them. Fortunately, these three are not as important in the content of the exam. I spent a day with Portfolio Management (12 points) which I was the most familiar with of these last three.
During the last day, I quickly came through the last two uncovered topics, the Derivatives (12 points) and Alternative Investments (8 points). Finally, I reviewed all the formulas used in all topics which is important to know and came through the morning section of the mock exam.
During the morning part of the exam, I felt quite good but I did not manage to came through all the questions, so I guessed about three last questions. During the afternoon part of the exam, I answered all the questions in time but at the end of the exam (about last 30 minutes), I was very tired and not able to concentrate. After the exam, I enjoyed very good party :)
To sum, I would say that the things that helped me the most to pass the exam were to use my own study style, take time off directly before the exam and do not panic. Based on my experience, .I would recommend you not to be scared to death if you have not come through every single page of CFA materials or have not done the mock exam before the exam because there is still good chance to pass the exam if you understand main topics well.
If I was study once more for the Level I, I would better planned my three study weeks, did whole mock exam and may be tried some sample exam (backward, I think that it is useful to know well the format of the exam) and used CFA study materials for unfamiliar topics rather than Schweser Notes.
Good luck to all Candidates! Do not hesitate to write me if you have questions.
Tuesday, April 10, 2012
One World One Language
I have read before some time that the EU employs about 1650 linguists and 550 supporting language workers and spends about 0.8% (13% of all administrative costs) of its budget for translations of many official documents. The system of the EU works so that all official documents are translated to all 20 official languages. This simple fact surprised and fascinated me and finally brought me to the idea: "Wouldn't be better to have the only one official language within the EU or straight all over the world?".
Now, think about it few seconds! Think about the pros and cons of this hypothetical idea. My conclusion is that I do think so! And now, I will explain you why.
Especially, I cannot see any practical reasons for having many different languages. Do you mean that it is different to say to your girlfriend "I love you", "Je t'aime" or "Ich liebe dich"? I don't think so. The only important thing is the content of the message itself, not the words used. So, I think that the expression of love gives your girlfriend same pleasure in English, French or German (if she understands the language used) and also the apple will taste same regardless of whether you call it "apple", "pomme" or "Apfel", don't you think. Why should it be important how we all will the apple call? Language is only the system of calling things, acts, feelings and other things that surround us, but the language itself is not important. The important is to understand each other and be able to communicate, explain our opinions and our moods.
Try to imagine that every country in the EU would use different numerical system. They would count 1+1=2 in a country, 1+1=12 in an another country and 1+1=c in a third country. Does it sound crazy? In fact, it is exactly the same as to name the apple "apple" in UK, "pomme" in France and "Apfel" in Germany. In this case, you would have to know some conversion bridge between different numerical systems and have a lot of people which would handle with recalculation all financial documents to all numerical systems which is exactly the same as translation of written documents. By the way, our numerical system presently used was imported to Europe from the Arab because counting with Roman numerals was very complicated.
In my opinion, the existence of many official different languages within the EU is only the mistake and imperfection of the system. I understand that different languages were historically created in separate communities. But now in our today's interconnected world, there are not any logical reasons for preserve many different languages.
I realize that the idea about the EU speaking all with only one language seems crazy and there will be lots of people think that it's foolish, but it makes sense. Believe that I know and realize often used arguments about the culture, history and tradition of languages. But on the other hand, please ask yourself if it is really necessary to have tens of official languages within the EU. Does it bring some positives? Do you think that it is practical, rational or economical?
There is also an argument that people would miss its original languages, but try to imagine that you was born to the world with the only one language and some old man would tell you that before many tens of years there were many different languages all over the world and if you wanted to do anything with people from different nation, you had had to learn their language before. Wouldn't you think that it was foolish world if there is demonstrably better variant with only one language? Would you iniciate the change back to start speaking with many different languages again? I don't think so. It wouldn't make sense to change the system from one language to multilingual, so the one language system is a better variant.
In our country, there is a statement that sounds something like: "How many languages you can, so many times you are a man". I think that it rather means that you wasted a lot time by leaning different languages which is useless. I have to say that if I spent my life as one of the many linguists of the EU, I would regret of my life because I would spent it by filling out the error in the system, which is useless and has not any value added. And spend my whole life by the activity without any value added would scared me.
I tried to make simple calculation of my wasted time by learning of foreign languages. I have studied English 45 minutes per week in the elementary school for 7 years, 135 minutes per week in the high school for 6 years and 90 minutes per week in the university for 5 years which giving a total of 63 000 minutes (with school year of 40 weeks) or 43.75 whole days or 131.25 working days (8 hours per day). Don't you think that it is enough time? Moreover, it is only time spent directly in school, there are not included any home study, individual study or other preparation courses and it is only my first foreign language. If I add my two other foreign languages, I will get about 100 000 minutes of wasted time (70 whole days or 210 working days). It is enough in my opinion for useless activity which could be eliminated. Try to calculate yours!
To conclude, I think that the idea has a lot of positives and only few negatives. There are not any rational, practical, economical or logical reasons for having many different languages within the EU, even all over the world. I can see only two big negatives, which are the cultural tradition of different languages and practical implementation, which could be long and not easy.
The practical implementation of the idea is another topic, which I don't want to discuss here and now. I will describe my ideas of it in the following article. Here, I want to discuss the idea itself. So, lets discuss and vote in a poll below please! I will be very happy to hear you opinions.
Finally, I do hope to see and live in the world with the only one language, because I believe that this change would make the world somewhat better place to live and it would save a lot of time and effort to almost all the people which they could devote to more important things and activities than the translation and leaning of foreign languages.
Now, think about it few seconds! Think about the pros and cons of this hypothetical idea. My conclusion is that I do think so! And now, I will explain you why.
Especially, I cannot see any practical reasons for having many different languages. Do you mean that it is different to say to your girlfriend "I love you", "Je t'aime" or "Ich liebe dich"? I don't think so. The only important thing is the content of the message itself, not the words used. So, I think that the expression of love gives your girlfriend same pleasure in English, French or German (if she understands the language used) and also the apple will taste same regardless of whether you call it "apple", "pomme" or "Apfel", don't you think. Why should it be important how we all will the apple call? Language is only the system of calling things, acts, feelings and other things that surround us, but the language itself is not important. The important is to understand each other and be able to communicate, explain our opinions and our moods.
Try to imagine that every country in the EU would use different numerical system. They would count 1+1=2 in a country, 1+1=12 in an another country and 1+1=c in a third country. Does it sound crazy? In fact, it is exactly the same as to name the apple "apple" in UK, "pomme" in France and "Apfel" in Germany. In this case, you would have to know some conversion bridge between different numerical systems and have a lot of people which would handle with recalculation all financial documents to all numerical systems which is exactly the same as translation of written documents. By the way, our numerical system presently used was imported to Europe from the Arab because counting with Roman numerals was very complicated.
In my opinion, the existence of many official different languages within the EU is only the mistake and imperfection of the system. I understand that different languages were historically created in separate communities. But now in our today's interconnected world, there are not any logical reasons for preserve many different languages.
I realize that the idea about the EU speaking all with only one language seems crazy and there will be lots of people think that it's foolish, but it makes sense. Believe that I know and realize often used arguments about the culture, history and tradition of languages. But on the other hand, please ask yourself if it is really necessary to have tens of official languages within the EU. Does it bring some positives? Do you think that it is practical, rational or economical?
There is also an argument that people would miss its original languages, but try to imagine that you was born to the world with the only one language and some old man would tell you that before many tens of years there were many different languages all over the world and if you wanted to do anything with people from different nation, you had had to learn their language before. Wouldn't you think that it was foolish world if there is demonstrably better variant with only one language? Would you iniciate the change back to start speaking with many different languages again? I don't think so. It wouldn't make sense to change the system from one language to multilingual, so the one language system is a better variant.
In our country, there is a statement that sounds something like: "How many languages you can, so many times you are a man". I think that it rather means that you wasted a lot time by leaning different languages which is useless. I have to say that if I spent my life as one of the many linguists of the EU, I would regret of my life because I would spent it by filling out the error in the system, which is useless and has not any value added. And spend my whole life by the activity without any value added would scared me.
I tried to make simple calculation of my wasted time by learning of foreign languages. I have studied English 45 minutes per week in the elementary school for 7 years, 135 minutes per week in the high school for 6 years and 90 minutes per week in the university for 5 years which giving a total of 63 000 minutes (with school year of 40 weeks) or 43.75 whole days or 131.25 working days (8 hours per day). Don't you think that it is enough time? Moreover, it is only time spent directly in school, there are not included any home study, individual study or other preparation courses and it is only my first foreign language. If I add my two other foreign languages, I will get about 100 000 minutes of wasted time (70 whole days or 210 working days). It is enough in my opinion for useless activity which could be eliminated. Try to calculate yours!
To conclude, I think that the idea has a lot of positives and only few negatives. There are not any rational, practical, economical or logical reasons for having many different languages within the EU, even all over the world. I can see only two big negatives, which are the cultural tradition of different languages and practical implementation, which could be long and not easy.
The practical implementation of the idea is another topic, which I don't want to discuss here and now. I will describe my ideas of it in the following article. Here, I want to discuss the idea itself. So, lets discuss and vote in a poll below please! I will be very happy to hear you opinions.
Finally, I do hope to see and live in the world with the only one language, because I believe that this change would make the world somewhat better place to live and it would save a lot of time and effort to almost all the people which they could devote to more important things and activities than the translation and leaning of foreign languages.
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