The Difficulty of Passing CFA Level 2

Learn about the CFA Level 2 approval rate and why this level is considered difficult to pass. Gain insights from an expert in finance and investment management.

The Difficulty of Passing CFA Level 2

As an expert in the field of finance and investment management, I have seen many individuals strive to obtain the prestigious CFA (Chartered Financial Analyst) designation. The CFA program consists of three levels, with Level 2 often being considered the most challenging. According to the CFA Institute, the average pass rate for this level is around 45%. However, this number can vary depending on the exam date and other factors.

In this article, I will delve into the details of the CFA Level 2 approval rate and provide insights into why this level is considered difficult to pass. One of the main reasons why CFA Level 2 is considered difficult is because of its format. Unlike the multiple-choice questions in Level 1, Level 2 has a mix of item set questions and essay-type questions. This requires a deeper understanding of the material and the ability to apply it in real-world scenarios. As a result, only 52% of candidates passed the exam in May, while 44% passed in November and 40% in August. It is worth noting that the passing rates for all three levels have increased over the years.

Since the CFA program began in 1963, the average pass rates for Levels 1, 2, and 3 are 41%, 46%, and 56%, respectively. This shows that while Level 2 may have a lower pass rate compared to other levels, it is still possible to pass with proper preparation and dedication. After taking the exam, candidates can access their detailed test scores and answers through their account profile. However, these are considered confidential information and are not to be shared by any preparation providers. The CFA Institute takes strict measures to ensure that the integrity of their exams is maintained. Before the pandemic, the CFA Institute offered two Level 1 exams per year, one in June and one in December.

However, due to the pandemic, the number of exam dates has increased, providing more opportunities for candidates to take all three levels of the exam. Despite this, the number of people taking the exam has decreased, which can be attributed to the challenges posed by the pandemic. The CFA Institute uses a rigorous methodology to determine the minimum passing score for each level of the exam. This ensures that candidates who pass have a strong understanding of the material and are well-equipped to handle real-world scenarios in their careers. The CFA designation is highly regarded in the finance and investment management industries. To obtain this designation, candidates must pass all three levels of the exam, covering a wide range of topics such as finance, economics, mathematics, and ethics.

As an expert, I can attest to the difficulty of these exams and the dedication required to pass them. Below are the passing rates for each level of the CFA program for the most recently taken exams:

  • Level 1: 2.1 million exams taken with an average pass rate of 41%
  • Level 2: 963,594 exams taken with an average pass rate of 46%
  • Level 3: 543,322 exams taken with an average pass rate of 56%
In conclusion, while CFA Level 2 may have a lower pass rate compared to other levels, it is still possible to pass with proper preparation and dedication. The format of this level may be more challenging, but it also prepares candidates for real-world scenarios in their careers. As an expert in this field, I encourage individuals to pursue this prestigious designation and use these insights to prepare for their exams.