The CFA Exam, or Chartered Financial Analyst Exam, is offered by the CFA Institutes. It is open to financial analysts and comprises a set of three exams. The exam is an international professional designation. Before taking the CFA exam candidates must already be in the last year of their bachelor’s degree or alternatively have at least 4 years of experience in the field.
When all 3 exams of the CFA have been passed, the candidate can become a CFA Charterholder. They must also comply with the code of ethics, have 4 years acceptable work experience and pay their member dues. The code of ethics is strict as are the professional conduct standards, all which must be stringently abided by all CFA Chartholders.
Exam candidates receive an unspecific score report as there is only a pass fail rating rather than score however the pass grade is stated at 70% but may differ and since 1989 the pass grade has been set by the Board of Governors after the exam has taken place when they review the results with help from psychometricians and each question has a minimum passing score set for it.
Candidates of the CFA exam usually take one exam only per year rather than all three at once. This process thus takes at least three years to complete. The level the exams are written at is postgraduate and aimed at financial professionals.
The CFA charter is a three-tier examination that is globally recognized and functions as a passport to the best financial jobs in the world. Each of the levels offered through the various business schools provides study materials required for the curriculum prepared by the business school or institute. However, the course itself recommends more books for the candidates to support their study and to prepare well for the exams. According to the general demand and the recommendation by successful CFA certifiers, the list of top three CFA books is listed here.
Study notes usually prepare CFA candidates with excellent notes on level 1, 2 and 3 of CFA curriculum. Some study programs are already world renowned, and the study materials are prepared with utmost care to equip the candidates with all the skills and knowledge required to pass the three levels of examination. The study notes are separate for each level, and necessary updates are made every year to ensure the candidates have up-to-date knowledge on the various concepts of investment and portfolio management.
Study Guide to Getting Started by Bruce Kuhlman
This book is written in Layman’s terms so as to help beginners to understand the financial and investment glossary. It is easy to follow, and can be referred as a guide to understanding the concepts of CFA before you venture into the financial certification. Those planning to enrol for the Level 1exam find it easy to understand the study materials after referring to this book.
AnalystPrep CFA Study Notes
AnalystPrep provides a series of online notes that comes with software that facilitates an interactive study. The notes and guidelines are well written and easy to navigate. They have been designed to help students remember and assimilate all of the concepts covered in the Syllabus. A question example is included in each LOS so the students can practice at the same time as their read the notes. Their famous mobile CFA program is a success tool that delivers CFA lessons onto your smartphone with internet capability. To see how this technology works, check out https://analystprep.com
Equity Asset Valuation (CFA Institute Investment Series) Jerald E. Pinto CFA
This book has been found helpful for those who passed level 1 and are planning to appear for the level 2 CFA exam. The book is quite crucial for all appearing for the exam and covers the four main concepts of completing the CFA level study: cash flow models, DDM or Divident Discount Model, price multiples and residual income. The book offers the best examples to enhance your learning experience of CFA.
Quantitative Investment Analysis (CFA Institute Investment Series) Richard A. DeFusco CFA
The quantitative methods required in investment are clearly explained in this book written by world’s renowned financial experts. The main book is complimented by a study guide that answers challenging questions arising out of investment concepts. A few of the topics precisely explained in the book are sampling and estimation, multiple regression, hypothesis testing, discounted cash flow, probability distributions etc.