Can someone explain the main difference between these exams? thanks a ton.
CFA level 1 = Preparing scrambled eggs CFA level 2 = Preparing an open buffet with a variety of beef, chicken, seafood, appetizers, and desserts … I had the same question you just posted when I passed level 1, and when I read what others posted about the HUGE difference between both exams, i was like they’re just showing off because they are level 2 candidates, but guess what? They’re definitely right, can’t be compared especially if you’re on a full time job 
Good luck.
Thank you. So the books are like 3x as thick? The information is that in depth?
Books aren’t much thicker from what I remember of Level 1. There is just so much MORE information that is not common sense. I would say there is probably 3-4x as much information that I had to memorize for Level 2. Had to re-take it in 2011 after killing level 1 in 2009. And I’m not just ‘showing off’, like Bilal said above. It’s the truth. I got my butt kicked for being cocky the first time in 2010. Still don’t know if I passed this year. But from what other CFA’s* have told me, if you can pass Level 2, you can pass Level 3. *please note I realize I just used “CFA” as a noun and should therefore be brutally punished by the institute.
budfox427 Wrote: ------------------------------------------------------- > Level 1 is to Level 2 > > as > > a Swedish massage is to > castration-by-way-of-cheese-grater See more here at this legendary thread: http://www.analystforum.com/phorums/read.php?12,1015512,page=1
Level one is all about knowing the basic concepts. Here are the inputs, memorize the formula, find the answer. Level two, you still need to know everything, but you have to find the inputs. Finding the inputs often requires being able to know different accounting treatments and assumptions. That’s a very simplistic explanation, but I think it mostly captures the difference. It’s a ton more in depth, a lot more curveballs, a lot more work to get an answer.
In L1, if your grasp of a topic is say 80%, you will be able to pick up about 4 or 5 out of 6 questions. In L2, if your grasp of a topic is 80%, you will be lucky to get 3 out of 6 questions correct. So its not a case of there being more material. Just that you have to hit it so many times and really ‘learn’ rather than just ‘memorize’ the material… I’m sure everyone felt this way - you walk out of the exam thinking ‘I just demonstrated about 20% of what I just spent the last 6 months (or year and a half) cramming into my brain’…
my lifes a movie, call me Martin Scorcese
I’ve said it before and I’ll say it again; Level 1 is like being in line at the DMV; no fun, but manageable. Level 2 is like the first 15 minutes of saving private ryan.
Thanks everyone for their insight. It is trully appreciated!
we’ll see u around! at least i will lol!
Stolen from a blog post last year… Level 1 - Spilling a can of motor oil in your garage Level 2 - The Gulf of Mexico Oil Spill
That’s an over exaggeration and entirely untrue. L2 is harder and deeper than L1. It’s not that it’s so hard as it is wide. There’s a lot to know and you have to know all of it on one particular day, but no single part is rocket science. magicskyfairy Wrote: ------------------------------------------------------- > I’ve said it before and I’ll say it again; > > Level 1 is like being in line at the DMV; no fun, > but manageable. > > Level 2 is like the first 15 minutes of saving > private ryan.
+1
Hank Moody Wrote: ------------------------------------------------------- > That’s an over exaggeration and entirely untrue. > > L2 is harder and deeper than L1. It’s not that > it’s so hard as it is wide. There’s a lot to know > and you have to know all of it on one particular > day, but no single part is rocket science. > > > > magicskyfairy Wrote: > -------------------------------------------------- > ----- > > I’ve said it before and I’ll say it again; +1 > > > > Level 1 is like being in line at the DMV; no > fun, > > but manageable. > > > > Level 2 is like the first 15 minutes of saving > > private ryan.
Lets not make this bigger than it is. For CFA level 2, we are not being asked to solve Fermat’s last theorem. If you are reasonably bright and put in the hours, you will almost certainly pass.
Level 2 is not harder because of the material. The only reason why it’s harder is because they don’t test you on everything swhich forces you to know every topic inside and out.
I: pee in pants II: shit in pants
In addition to the increased width of L2, the switch from one-off, unrelated questions to the vignettes makes a big difference. You have to spend more time reading (and fretting) and it’s a lot easier to be inefficient with your time. The vignettes also make it much more likely that you will get six questions on a relatively minor topic so if you weren’t comprehensive in your studies, you might blow the whole set aside from some lucky guesses. One question last year for L2 comes to mind…I’m not going to say what it was but there were about 4 or 5 questions that were covered on 1 or 2 pages of CFAI text.
Hank Moody Wrote: ------------------------------------------------------- > That’s an over exaggeration and entirely untrue. > > L2 is harder and deeper than L1. It’s not that > it’s so hard as it is wide. There’s a lot to know > and you have to know all of it on one particular > day, but no single part is rocket science. > > > > magicskyfairy Wrote: > -------------------------------------------------- > ----- > > I’ve said it before and I’ll say it again; > > > > Level 1 is like being in line at the DMV; no > fun, > > but manageable. > > > > Level 2 is like the first 15 minutes of saving > > private ryan. I am harder, deeper, and wider