What is CFA?
The Chartered Financial Analyst (CFA) is a designation given to those investment/business professionals who have passed the complete three series of examinations given by the CFA Institute. It is an internationally or globally recognized professional designation.
To take the examination for the CFA is for the candidate to have a bachelor degree (or equivalent) or is in the last year of the bachelor’s degree program or have a qualified professional work experience of at least four years. To become a CFA Charter holder is to be able to pass the three series of exam over at least three years. It is also necessary that to become a charter holder is for the individual to comply with the CFA Institute’s Code of Ethics and Standards of Professional Ethics, pay the regular membership dues and have a four-year work experience acceptable to the CFA Institute.
The examinations are given on paper and are administered on a single day. The exam consists of 3 levels and 6 hours are allotted for each exam. The Level I exam gives emphasis on tools and inputs and introduction to asset valuation and portfolio management techniques. The Level II exams gives emphasis on asset valuation, which includes the applications of the tools and inputs such economics, financial statement analysis, and quantitative methods in the asset valuation. The Level III gives emphasis on portfolio management.
The fee for the CFA exam in June 2008 ranges from $600 to $930. All the exams are given every year and are usually scheduled during the 1st week of June. For Level 1, this exam is given twice a year during the month of June and December. The Board of Governors sets the passing rate for the CFA exam after each exam.
by Korbin Howard