Finally, the most difficult topics by CFA level, the most difficult topics in CFA level 3 are fixed income, ethics, equity investments, alternative investments and derivatives. After reading the curriculum, I was under the impression that fixed income and derivatives would probably be the most challenging. The following table, using data from the CFA Institute, shows how each section is weighted from one level to the next. The successful candidates declare that they have spent about 300 hours studying for each level, ranging from 303 hours for the CFA level 1 exam to 328 for the CFA level 2 exam and 344 for the CFA level 3 exam.
Many CFA certificate holders consider the CFA Level 3 exam to be the most difficult because of the time and reflection required to successfully respond to elaborate answers. Without considering a specific schedule and sticking to it, it's difficult to take responsibility for the hours needed to pass the CFA exam. For many, the CFA Level 3 exam may be the most difficult due to the open structure of the structured answer section. Back in 1963, when the first CFA exam was taken, there was only one level and 94% of the 284 candidates approved it.
In the afternoon session, candidates are faced with 10 sets of questions with multiple-choice questions elaborated and presented in a manner similar to those in level 2.The good news is that concepts found in level 1 tend not to be addressed in as much detail, so they may be easier to learn. This is normal, and it's much better to be realistic about your specific needs rather than relying on what your colleagues or fellow candidates have achieved with their own CFA exam studies. As each CFA candidate's schedule is different, it's impossible to say how much time a person needs to study and prepare properly for the exam. Technically, it could be argued that this level is the most difficult CFA exam, especially if the candidate does not have a solid background or work experience in finance or a related field.
The CFA Institute emphasizes several areas evaluated in each exam, so the level of difficulty (to a certain extent) depends on the particular exam the candidate takes. Although the subjects of the CFA level 1 and 2 exams are the same, level 1 covers a wider range of subjects, but at the fundamental level, while level 2 covers a more limited range of subjects, but with greater depth. For example, level 2 for year “X” may objectively be a more difficult exam than level 1 for the same year, simply because of the way the exam is administered. It's a good idea to thoroughly understand the theories and topics related to the CFA Level 3 exam to help develop problem-solving skills when studying for the exam.
Candidates who pass the CFA Level 1 exam usually have a good command of the exam material.
