As a seasoned expert in the world of finance and investments, I have had the privilege of guiding countless individuals through the rigorous process of obtaining their CFA certification. One of the most common questions I receive from aspiring candidates is whether the CFA Level 2 or 3 exam is harder. The truth is, both exams present their own unique challenges and require a significant amount of dedication and preparation to pass. While the typical passing rates for the CFA Level 3 exam are higher than those of the other two levels, with only about 56% of candidates passing, it would be a mistake to assume that this means the Level 2 exam is easier. In fact, many would argue that the Level 3 exam is the most difficult due to its open structure and emphasis on structured answer responses. One of the main reasons why many CFA certificate holders consider the Level 3 exam to be the most difficult is because it requires a great deal of time and reflection to respond satisfactorily to elaborate answers.
In contrast, the afternoon session of the exam consists of 10 series of multiple-choice questions, similar to those in Level 2.However, each candidate's experience and background are unique, making it impossible to determine exactly how much time one should dedicate to studying for this exam. While both the CFA Level 1 and 2 exams cover the same subjects, Level 1 has a wider range but at a more fundamental level, while Level 2 delves deeper into a narrower range of topics. Therefore, it would be safe to say that most CFA certificate holders would agree that Level 2 is the most difficult of the three exams. However, it's important to note that the difficulty of each exam can vary from year to year. For example, the Level 2 exam for one year may be objectively more challenging than the Level 1 exam for the same year, simply due to the way it is administered. In my experience, I have found that using practice tests and mock exams, such as those offered by Schweser and the local CFA society, can be extremely helpful in preparing for both Level 2 and 3.While some may argue that Level 3 is not necessarily the most difficult exam, it is certainly different from the other two levels due to its essay-based format.
To succeed in this exam, it's crucial to have a thorough understanding of the theories and topics covered in the CFA curriculum, as well as strong problem-solving skills. Regardless of which CFA level exam you are preparing for, the key to success lies in creating an effective study plan and sticking to it. Most candidates who pass the exam claim to have spent around 300 hours studying for each level, with an average of 303 hours for Level 1, 328 hours for Level 2, and 344 hours for Level 3.Additionally, utilizing third-party practice tests and mock exams can provide a reliable reference point for what to expect on the actual exam day.