Can Anyone Pass the CFA Exams? - CFA IQ Test
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- čas přidán 10. 09. 2024
- My thought on whether or not just about anyone can pass the CFA Exams with enough time to study. I talk about an IQ test score.
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You're probably right but nonetheless I'm on a mission to prove you wrong, even if it requires decades of immense effort and tens of thousands of dollars in resources for preparation. If after all of that I'm still unable to pass, then I guess there's no use for any average person to pursue anything even remotely intellectually challenging.
I like your drive, best of luck!
Get after it Demario, good luck!
@@straighttalks-ajsrmek323 no, he just proved your point, he has not taking into consideration the time cost involved when it comes to taking the cfa that many times.
You got this mate!
If it’s not meant to be it’s not meant to be irrespective of the perspective.
Seems like a very honest, "up front" assessment....
Hey brother. I'm a CFA candidate from India I thought over this video. You're right in a way that you need to be intelligent to pass the CFA examinations. But my argument is against the way we measure intelligence. I did take a test and my score was 125 just to show that there is no confirmation bias in my argument. Assuming that the best psychologists of the world who designed the Mensa tests being right about how you measure intelligence is flawed. There are so many types of intelligence and so many biases that come into factor. A person let's say is not good with numbers but exceptionally good in sequencing an argument by looking at the pros and cons, is a really good indication of how this person is going to understand the concepts in the CFA and apply it in real life too. 1st question to you is how do IQ tests measure this person's capabilities. Secondly, IQ tests test spatial intelligence too if you have experience in technical analysis then you should be knowing that nothing is rigid everything depends upon the creative aspect in the stock market, people's behaviour, and our experiences so there is don't see a very strong correlation as there is no way these tests measure a person's creativity. Thirdly the language barrier, for example, I was born and bought up in India. These IQ tests base their questions on English meanings and proverbs. That i have never seen in my life. How does it measure my ability to understand the CFA curriculum then? Don't you think it has become more of a memory thing than testing your ability to communicate and understand a language efficiently? Finally, I'd like to say that instead of using IQ tests as an underlying and CFA exam a derivative of it we should directly look at CFA as an underlying. If you get all the factors needed together in one place then you will pass otherwise you'll fail. Its that simple. @Straight Talks I'd love to get your opinion on my comment.
I agree with most of what you said!
1. You are right that there may be better ways to measure intelligence than IQ, but IQ is probably the best universal score we have.
2. IQ tests certainly don't measure creativity, but there is some pattern recognition tested.
3. You make a very good point about the language barrier. Surely this is more difficult if not a native English speaker.
4. I would be cool with using the CFA as the ultimate factor!
@@straighttalks-ajsrmek323 yupp 😃
What a blithering idiot. srmek is very much on point. There is a war by the left to contextualise and relativize intelligence
Dude this is hilarious. Average people have been passing the CFA for years. Your research was pretty much your inner circle and that was about it. Hard to make a case for the point you're trying to make.
I have seen 3 pretty good studies on average intellect of CFA charterholders and none of those 3 studies indicate that "average" people pass these exams. What are you basing this off of?
@DD X Sorry I didn't mean to come off as jealous! But your scenario here does not refute my point. I don't think that people have to major in business to be able to pass the CFA exams, many who do did not major in business. But i do think they have to be above a certain minimum intellect to be able to pass the CFA exams, which is what I claim here.
@DD X When, you say "average in smarts" are you saying she has an IQ close to 100?
i guess it depends on who you consider average people. Would you consider average someone who has never failed not got anything less than a B in a single exam in a good university ? Then I guess your definition of average is much above average. To be clear, I disagree with this video because I believe CFA is all about studying and practicing. of course it is impossible to know everything, but the more you practice the more familiar you feel with the questions and the higher your chances of passing (considering the main reason why people don't pass CFA is because they did not put enough time and not because they perceive the exam being super difficult).
Also, i don't think being in the top 95th or 97th percentile of an IQ test makes you smarter than others just based on that IQ test. IQ tests do no add any value whatsoever, and I remember taking one in middle school where I did not do that well and then got much better grades in HS compared to other people who scored in that IQ test better than me (e.g., this is an iQ test which adds no value whatsoever, so are we sure people actually take it seriously and they don't just guess because they can't be bothered to answer it seriously? Maybe that's skewing the results upwards for someone who indeed took it seriously). Always take everything with a pinch of salt. But I think this video and the correlation between IQ and CFA is pretty useless.
@@marcomolinari7971 IQ holds a correlation of 0.5 on work performance. A competitive candidate for software engineering must be at the higher 120s or above. Self-made billionaires average 130, while homeless are at 70. That's 4 standard deviations of difference between the two groups, meaning the chances of the average self-made billionaire having a lower score than a homeless man is that of 1/10000. Of course, IQ is not everything, but it is far from meaningless. I've applied to many workplaces and done some cognitive tests for different areas - software engineering and data science have by far the hardest tests (which are basically IQ tests on pattern recognition. I compared both.). Though I doubt the average person who has gone through college is incapable of completing the cfa program
I agree, and you also have to add another layer which is that the exams are available only in english. Which means that for us, non-native english speakers, we also have to learn the language well enough to understand, at least, most of the content.
I dont think I have a very high IQ but I sit for lv 1 in 19 days as a college student with passing scores on mocks with about 300 hours
passed
I think most people forget what average is once they go to college. If you go to a decent college, you most likely are already with people in the top 50% of IQ. If you go to a good one, you are with people in the top 25% or maybe even 10% if it's elite college. I think you probably do need to be above average in IQ, like top 40-30% to think about it. Most people probably sell themselves short if they're even considering the CFA on here since they probably are already in that range and mostly know people in that range as average.
I would probably agree with this.
That's exactly right. Almost everyone who's just thinking about doing the cfa exams are above average. Banking/finance averages 125 if I remember correctly
Extrapolating the group that you associate with to the whole population is a form of "narrow range of experience" which is a representativeness bias on the Level 3 exam. Sorry, I had to be a nerd for a sec.
@@thomasroche7821 It became very clear to me once I left finance to start my own eccomerce business. We are expanding and it’s so hard to find good talent. I thought I was average while I went to uni and worked in finance because I’m around such smart people all the time.
@@thomasroche7821 An average state school graduate is a standard deviation above the general population, so people think I was a little smarter than the average person in college and I was able to pass the CFA exams. However most people realistically couldn’t.
600+ hrs? And here i am having a hard time giving 2 hrs / day to study level 1.. God help me. got 122 though
122 is better than nothing! But it won't be easy to pass with 122 hours studied.
How did you do?
Agree very much with your views. There is no way an average person can pass, even with previous degree in the field. I usually score in top 5% of white collar managerial level employees. I am around mensa level. I could easily graduate in upper quartile of my degrees without effort. CFA put me to the test. I had to be my best to pass all three levels. All CFA's I have worked with are smart people, even level two passers I would consider as smart.
Very good points. Mensa folks still have a lot of difficulty with these tests.
Spent 7 years with "PwC". Believe it or not, but I have actually seen CFA chartholders who are not that smart at all, at least from the first sight. Some of them struggled to socialise - being able to spend 600-800 hours preparing for one exam = deprivation, which inevitably leads to a lot of psychological struggles. If this is the case, less educated colleagues (those alpha males with charisma, looks (yes), superior language proficiency and entrepreneurial spirit) can indeed make a person holding CFA degree look bad to say the least. Point is that it is definitely a good thing to have a degree, but it does not necessarily make your life at work easier, no matter what your position is.
I get that it's an opinion video but he's so wrong.
@@Cekeshe how so?
Studying 600-800 hour did not make me deprived of anything, or lead to psychological struggles.
This makes no sense- he didn't intimate being better with ladies or athletics....hilarious...read more like self therapy.
..as in your reply
Hey AJ you really got me confused. Knowing that you weren’t an A+ student back in uni & now watching this video gave me mixed signals. So I had 3 Questions if I may. 1. Isn’t the CFA material pretty similar to that of an academic fin curriculum, so after college you’ll be repeating many of the questions? 2. If I were a B+/A in a prestigious university. But I lack experience in the industry & stock market, do I stand a chance? 3. I’ll be starting my junior year in 2021, is it a good idea to purchase the material and start early for a 2022 level 1 exam (b4 internship)? Thanks 🙏🏻
1. The only books that were similar to my uni curriculum were Econ, and some of Quant. The rest was pretty new for me. 2. Yes you definitely stand a chance if you put in enough time. 3. No i would not start studying that early. Usually about 6 months before you plan to take the exam.
I don’t buy into the fact that becuz people Iq test is in the low and they can’t improve it. In many ways, iq test is a learned test. Which mean the more u do a certain type of training the more u ace it. What makes u think the East Asian country has the highest iq overall. It is simply becuz they focus a lot on education. I question the arguement becuz I don’t think IQ test is a good benchmark at All. People ace IQ test mostly becuz they are from a background with a lot of focus on education, it is just like SAT or A level or another other kind of exam(and CFA for That matter), u can train for certain how well u score as much in an IQ test as it is a CFA. Those who have a low iq is not becuz they are stupid, but becuz they never try to make an effort to improve their education and examination skills etc. it is an mentality thing
All fair points. I see what you mean about east Asian countries.
im well below average intelligence and i passed level 2 with 400 hours of study
What is your IQ?
This is so true. People disliking are the ones who doesn't want to consider the intelligence spectrum.
"Doesn't want" lol
The problem with this video as with many people who talk about iq is that they see it as a black and white thing, iq will always be part of the equation but the problem with this video is that he says that a person with an average iq can’t pass the CFA even with a 1000+ hours of study per level which is absolutely ridiculous, I have seen it firsthand to know that this is wrong.
There's no rocket science, but there is a way to hell like probability, index no., matrices etc.
I am having ACCA qualification and looking to get CFA qualification. So,Can i self study cfa lvl 1... ?
What about level 2 and 3?
Yes, it is all self study.
I don't know whether IQ is the right reference for passing the CFA exams. For example I'm abover IQ 130 but I'll never pass any of those CFA exams. Not because I'm not interested in finance but I also failed at university. The reason for this might be my Asperger syndrom. Therefore it might also be possible for an average IQ person to pass all CFA exams because they are firm at studying efficiently and might be talented in the field of finance (exclusively).
I agree with @Aditya Bhat that only the CFA should be used as an underlying. As you said knowing your IQ doesn't help much (but it's understandable to be curious about it). 🤔
Preach brother. Just passed may level 2 and thought the same thing.
cool, what do you work as in particular ?
Thanks for all the videos. You mention approx 600 hrs for both L2 and L3. You may have made mention of it before, but how many hrs approx for L1? Also did you have a finance background before starting the CFA path?
I did 431 hours for level 1. And yes I had a finance background from college.
@@straighttalks-ajsrmek323 Thanks. The video is interesting as is the question. Wonder if you think that if a person has the IQ (and work ethic) to get past L1, if that implies they have the basic ingredients to pass L2 as well, or does it become a separate question entirely. Seems some people feel L1 might be doable by brute force so to speak, but then L2 separate the bigs from the minors so to speak. Thanks--
@@chipmoffatt7748 Yea that is a good point and I would have to think about my answer to that. Right now I am leaning towards L1 being a good qualifier for the other 2 levels in my opinion but I realize the pass rates don't align with my thoughts there.
If there is a will then there is way... I know some pretty average guys who studied hard to get through level 1 and 2. I know they are average because they worked under me and I have a good sense of their interllectual capabilities, but they key factor for their success in cfa was determination and hard work, not a high IQ. Ps, they didnt even do the 300 hrs recommended as they were working really long hours.
So you feel someone of average IQ (100) and less than 300 hours of study can pass the CFA exams? That would mean the CFA designation really doesn't show much prestige at all.
@@straighttalks-ajsrmek323 Im not saying I feel, I said I know, because it happened, and no Im not saying it not prestigious, I am saying you are wrong claiming you need a higher than average IQ to pass the CFA exams. Yes it is difficult but at the same time doable, given the guys I know had a big interest in finance and hands on experiance before taking the exams.
@@billalko4580 To say that you "know" would mean that both guys took an IQ test and scored less than 100 and showed you the results.
@@straighttalks-ajsrmek323 Well no, they did not show any IQ test, I did not say that, but based on their level of intelligence, they would be deemed average (they were nothing special, just good at their level of work, pretty much like most others).
@@straighttalks-ajsrmek323 our friend Billalko here fails to discern between fact and opinion. He has violated the Codes and Standards
that iq test is not legit lol go to the actual mensa exam and then come back your IQ will probably be top 20-10 percentile. barely anyone gets 97 lol
This IQ test is legit, it is the closest published thing to a Mensa phycologist exam. And exactly 3% of the population would score above the 97 percentile, that's why its a percentile score.
@@straighttalks-ajsrmek323 where did you get it from? and you didn’t do it under Mensa exam conditions either so it’s not the same
@@straighttalks-ajsrmek323 i won’t knock it without trying so imma get the book and see if gives me a much higher IQ than my mensa test result lol
@@PS-hi9os Let me know
@@PS-hi9os Barnes and Noble
Level 3 candidate here.
This is ignorant and, tbh, just bs.
The biggest factor in establishing educational outcomes is effort. Not initial iq level.
Unless it's extremely easy.
Studies conistently show that effort can level the difference between high achievers and others
So you don't think there is some baseline minimum IQ a person would need to pass all the CFA exams?
Being smart helps but you don’t really have to be that smart to pass these. The math here is nothing on the level of pure mathematics at the highest level and anyone with a PHD in quantum physics would blow through all 3 levels with ease
What makes this hard is volume and it’s more about wanting it bad enough
What is the minimum IQ you think someone would need to be able to pass all the exams?
@@straighttalks-ajsrmek323 He said it's not that much about IQ. It'll vary on determination, with the min IQ being pretty low.
If you have a PHD in quantum physics, your IQ is likely north of 140. So unsure of your point here.
What if i know im intelligent but lazy ? Can Lazy people pass CFA exams ?
ADHD
In my opinion, no. You really need to get the 300 hours in, and more than that ideally.
@@straighttalks-ajsrmek323 what u say about syllabus change in cfa all lvls... is it freequent? Will the changes be tested in exams after that?
@@ashiqshajoos378 No it is not frequent
@@straighttalks-ajsrmek323
so can i use a year or 2 yr old study materials?
What does the initial fee consist of $1100? Only exam fee ? Or materials included? If so is it hard copy or soft?
Which is the best text book providers?
This is depressing
Didn't mean to be depressing!
Does 118 iq enough for Level 1 ? 😂 I will study for 6 - 12 month
Yes it is for sure! You got it.
@@straighttalks-ajsrmek323 tnx ! 💪
I disagree completely. Your IQ score is something that can be improved over time, it isn't set in stone. When I graduated highschool I scored a 960 on the SAT, one of the lowest scores in my grade. I just never studied or took school seriously. When I entered University, I decided to change my mindset and lifestyle and take school seriously. I recently graduated with a 4.0 accounting GPA and I passed all 3 sections of the CPA Exam on my first attempt (taking the last section soon). I know that the CFA Exam is a lot harder than the CPA, but only 20% of CPA Candidates pass all four sections on their first attempt. Am I genius? I don't think so, I just studied consistently. I don't believe in this victim mentality of "I wasn't born smart"
Iq is very different than SAT scores. You can't practice for an IQ test *very* much to improve it.
@@straighttalks-ajsrmek323 Well you can practice for a CFA Exam. This is not rocket science. The more the average person studies, the better they will do. Discipline is required, not high IQ.
@@Ari-lu5ve I didn't say high IQ is required, but rather than a person must be above a certain minimum IQ for all the CFA studying to actually stick.
So you’re saying this is the hardest thing I’ll ever have to do
Possibly, yes.
Probably u are right but I guess intelligence can be increased. What do you say
Yes , I believe IQ can be increased.
What university did you attend ?
Dont forget that the "average IQ" also counts people from poor countries (some of them have IQ average of 60-70) so if you are average among your friends/ family it puts you on ~25% top percentile already. In more developed countries the difference between top 10% and top 50% is not that significant
You got it all wrong dude. You have to stick to the time limit with that iq test. You can’t do it over a couple of days.
Ah, I hadn't thought of that. I stuck to the 8 hours total but split the hours up. Are you saying that invalidates it?
@@straighttalks-ajsrmek323 yea totally invalidates it. I really enjoyed that book ,don’t know how accurate it is though it’s heavily dependent on verbal ability.
Currently a broker at a large firm. Considering the CFA, which is how I found your vids. I actually did one of those IQ exams administered by a psychologist. You should do one. It's pretty fascinating.
Do you know if it is much different than the paper IQ tests?
@@straighttalks-ajsrmek323Pretty different in that you take a variety of exams. It was like 6 or 7 if I'm remembering correctly. 1 of them I was physically manipulating blocks and timed. Another one was memory based. So it was a comprehensive intelligence exam testing all parts of the brain and how they work together.
This vid is such a circlejerk lol.
Yes lol