As an expert in the field of finance and a CFA charter holder, I have seen many aspiring candidates struggle with the CFA Level 2 exam. It is known to be one of the most challenging and rigorous exams in the financial industry, with a pass rate that can be discouraging to many. But what is the actual pass rate for the CFA Level 2 exam? In this article, I will delve into the details of the pass rate and provide insights on what it takes to pass this exam. The all-time average Level II pass rate is 46%. This means that less than half of the candidates who take the exam actually pass it.
This may seem daunting, but it's important to understand that this exam is designed to test your knowledge and skills in a comprehensive manner. It requires deep and extensive knowledge of the subject, with very few accumulated knowledge from university courses. At UWorld, we understand the challenges that come with preparing for the CFA exam. That's why our team of professionals includes CFA charter holders who have extensive experience teaching and creating specific content for the exam. With our resources and expertise, you can develop a solid understanding of the expectations of the CFA exam and create a plan for success.
The Grading System
In order to understand the pass rate for the CFA Level 2 exam, it's important to first understand how the grading system works.The Governing Board of the CFA Institute establishes the minimum passing score (MPS) for each level after every exam administration. This means that the MPS can change with each cycle of new candidates. The multiple-choice questions (MCQ) from all three levels of the CFA exam are scored automatically, with around 10% of exams being re-graded by hand to ensure accuracy and consistency. The Governing Board usually sets the MPS for levels 1 and 2 about six weeks after the completion of the exam. This means that the MPS for the Level 2 exam is not predetermined and can vary from one exam administration to another. So, what does this mean for candidates? First, it can give you an idea of the difficulty of the exam and the level of preparation needed to pass it.
As long as you score well on multiple-choice questions, you should have a good chance of passing the second level of the CFA exam.
The Role of CFA Charter Holders
During the first week of qualification, candidates at various levels and a “grade evaluator” grade all exams. However, they also review each other's work to ensure consistency. The multiple-choice questions for all levels of the CFA exam are graded by computer, while the essay (“constructed answer”) portion of Level 3 is scored by CFA charter holders. As a CFA charter holder myself, I can attest to the rigorous process of grading these exams. We are trained to evaluate answers objectively and consistently, ensuring that all candidates are graded fairly.This also means that there is no room for subjectivity or bias in the grading process.
The Minimum Passing Score (MPS)
In addition to the stressful nature of the CFA charter exam, there is uncertainty surrounding your chances of passing it, given that the MPS is unknown. The minimum passing score (MPS) is the lowest possible score a candidate can obtain while still passing the CFA exam. This score is not disclosed to candidates, which can add to the pressure and anxiety surrounding the exam. The Board of Governors purposely sets the bar very high so that only those with a deep and extensive knowledge of the subject will move on to the next level. This philosophy is reflected in the approval rate, which is significantly lower compared to other major financial exams, such as the CPA and the CFP.Conclusion
The pass rate for the CFA Level 2 exam may seem low, but it's important to remember that this exam is designed to test your knowledge and skills in a comprehensive manner.With proper preparation and a solid understanding of the expectations, you can increase your chances of passing this exam. At UWorld, we are committed to helping aspiring candidates achieve their goals and become successful CFA charter holders. With our resources and expertise, you can confidently tackle the CFA Level 2 exam and take one step closer to your dream career in finance.
