CFA Study Plan 

CFA Study Plan 

The Chartered Financial Analyst (CFA) program is a professional credential offered internationally by the American-based CFA Institute (formerly named as the Association for Investment Management and Research, or AIMR) to investment and financial professionals. The candidates who can complete the program successfully and meet certain other criteria become the CFA charter holders. This program includes some topics related to investment management, financial analysis, stocks, bonds and derivatives, and also provide knowledge regarding other areas of finance. There is a special criteria which met, then only, the candidates are given the CFA charters.

 

 

 

There are three exams included in the program, namely, Level I, Level II and Level III. The Level I

Study program emphasizes tools and inputs and includes an introduction to asset valuation, financial reporting and analysis, and portfolio management techniques. The Level II study program emphasizes asset valuation and includes applications of the tools and inputs (including economics, financial reporting and analysis, and quantitative methods) in asset valuation. The Level III study program emphasizes portfolio management and includes descriptions of strategies for applying the tools, inputs, and asset valuation models in managing equity, fixed income, and derivative investments for individuals and institutions.

All three exams are held on a single day. While the Level I exam is administered twice a year (usually the first weekend of June and December). The Level II and III exams are administered once a year, usually the first weekend of June. Each exam consists of two three-hour sessions. Level I has 240 independent, multiple-choice questions—all information required to answer the question is contained in the question. Level II has 120 multiple-choice questions, organized as 20 six-question item sets, each set having its vignette of facts. To answer each question, the candidate must refer to the vignette as there is insufficient information in the question stem. Level III consists of a session of constructive response, essay-type questions, and a session of 10 six-question item sets as in the Level II exam.

The syllabus contains the following topics: Ethics, Quantitative Methods, Economics, Corporate Finance, Financial reporting and analysis, Security Analysis and Portfolio Management. Every section needs attention properly since it’s one of the most competitive examinations. Firstly, one must find out which section he or she feels difficult or in other words, needs more preparation. Once, it is sought out; one must start preparing for the three exams. You need to cover, each of the sections one by one giving each section a good amount of time. There are many practice papers, which can be worked out. This would help you the level of your preparation and it also suggested, that many of the practice papers should be tested since just one or two might not be of good help. So, the study plan duration should at least 12-14 hours per day giving more importance to your weaker sections. Just decide and make up your mind to get prepared for the examination of which many institutes are providing the training.  Your review might be very successful in case you speak about your thoughts loud. You may say the verbal summary loud to yourself, and speak summary to somebody else. This activity helps in a long way.

Every time you repeat the same physical action, and review the same study, some chemical changes happen at synapses between the brain cells and making it very simple for the signal to go through next time when you repeat this thought and action. This is why repetition and review help to fix the acquired skills as well as knowledge in the brain.

Saying material out loud, and writing out some notes again may involve more of the brain cells in the process of remembering. Some people have sustained brain damage because of brain injury, advancing age, and because of the alcohol and drug use might no longer have any ability to very quickly refresh the knowledge by fast reviewing the material again. People might need to spend a lot more time and effort in reviewing the material and have the lower rate of the recall. For most of the people, however, above schedule is the time efficient way of keeping the information available easily to the memory.