How is the CFA exam scored?

by | Feb 25, 2025 | Uncategorized

Welcome to TakeMyCFAExam.com. If you're preparing for the CFA (Chartered Financial Analyst) exam, you’re probably already feeling the pressure. It's a rigorous process, but don’t worry we’ve got your back. One of the most important things to understand when tackling the CFA exam is how it is scored. Knowing what to expect can help you approach the exam with confidence and clarity.

Let’s dive into everything you need to know about the scoring system for the CFA exam.

The Basics of CFA Exam Scoring

The CFA exam is divided into three levels (Level I, Level II, and Level III). While the format of the exams changes with each level, the scoring system remains relatively consistent.

1. Level I: Focuses on knowledge and comprehension of basic financial concepts.

2. Level II: Requires analysis and application of financial concepts in a more complex, case-study format.

3. Level III: Focuses on the ability to apply concepts and integrate them into real-world scenarios, including portfolio management and wealth planning.

For all levels, you’re scored based on a weighted combination of multiple-choice questions and constructed-response (essay) questions. Let’s explore this in more detail.

The CFA Scoring Process: A Detailed Breakdown

Multiple-Choice Questions (Levels I and II)

For Level I, the exam consists of 240 multiple-choice questions (divided into two sessions of 120 questions each). These questions cover a wide range of topics, including ethics, economics, financial reporting, and portfolio management.

For Level II, the multiple-choice questions are structured in item sets. Each set contains a case study followed by a series of multiple-choice questions. While the format is different, the overall process remains the same: you’ll receive a point for every correct answer.

Constructed-Response (Essay) Questions (Level III)

Level III is where things get a bit different. This level combines both multiple-choice questions and constructed-response questions, also known as essay questions. These questions assess your ability to apply your knowledge in practical situations, asking you to explain your reasoning and strategies.

For example, you might be asked to develop an investment strategy based on a client’s financial situation or identify the best portfolio diversification method for a specific client.

How Are Your Answers Graded?

The CFA Institute uses a weighted scoring method to grade your exam. Here’s how it works:

  • Correct Answers: You earn points for each correct answer.

  • No Negative Marking: One of the biggest perks of the CFA exam scoring system is that there’s no negative marking for incorrect answers! This means that guessing won’t hurt your score, but don’t just guess randomly your goal should be to answer as many questions correctly as possible.

  • Item Set Weighting: For Level II, item sets are weighted based on their topic area. For instance, if a set covers a heavily weighted topic like equity investments, getting those questions right will be more important than those in a lesser-weighted category.

What’s the Minimum Passing Score (MPS)?

At this point, you may be asking, “What score do I need to pass?” Well, here’s where things can get a little tricky. The CFA Institute does not release the exact minimum passing score (MPS) for each exam. However, you should know that the MPS is based on a combination of factors, including the overall difficulty of the exam and the distribution of scores from all candidates who took the exam.

The MPS typically falls between 65% and 75%, but this can vary depending on the exam cycle.

Scoring System for Level III (Essay + Multiple Choice)

Level III’s scoring process is unique because it combines multiple-choice questions with essays. Here’s how scoring works for each section:

  • Multiple-Choice Questions: Scored as described above (correct answers earn points).

  • Essay Questions: These are scored based on a detailed rubric that focuses on how well you apply financial knowledge to practical situations. Be sure to be clear and concise in your responses, and stay within the provided guidelines.

For Level III, you’ll receive a combined score from the multiple-choice section and the essay section. It’s crucial to perform well on both sections to pass.

Understanding Your CFA Results

After the exam, you’ll receive your results on the CFA Institute’s online portal. Typically, you’ll know whether you’ve passed or failed within 2-3 months after the exam. The results are usually broken down into three areas of proficiency:

  1. Below Target: A sign you didn’t score well enough in that area.

  2. Target: You performed at an acceptable level in this area.

  3. Above Target: You did well in that area!

These results can help you see where your strengths and weaknesses lie and give you a good idea of what areas to focus on in the future.

Can I Retake the CFA Exam if I Fail?

Yes, you absolutely can retake the CFA exam if you don’t pass. In fact, many candidates do this. Keep in mind, the CFA exam is designed to be challenging, and passing it requires dedication and focus. If you don’t pass, don’t be discouraged. Use the feedback to guide your studies, and try again next year.

CFA Exam Scoring FAQs

1. How is the CFA Level I exam scored?

The CFA Level I exam is scored based on 240 multiple-choice questions, split into two sessions of 120 questions. Each question carries equal weight, and there’s no penalty for incorrect answers. The minimum passing score (MPS) varies from year to year.

2. Is there a passing score for the CFA exam?

The exact passing score (MPS) is not disclosed, but it generally ranges from 65% to 75%. The CFA Institute calculates the MPS based on exam difficulty, the performance of candidates, and other factors.

3. What happens if I don’t pass the CFA exam?

If you don’t pass the CFA exam, you can retake it during the next exam cycle. You’ll receive feedback on your performance, which can help guide your study approach for the next attempt.

4. How does the CFA scoring system work for Level III?

Level III combines multiple-choice questions with essay questions. Both are scored separately, and your final score is a combination of these two sections. Both parts of the exam require you to demonstrate a deep understanding of the material and apply it in real-world situations.

5. How long does it take to receive CFA exam results?

You’ll typically receive your CFA exam results 2-3 months after the exam. Results are available on your CFA Institute online portal.

6. Can I guess on the CFA exam?

Yes! There’s no penalty for guessing, so don’t leave questions blank. However, it’s always better to make an educated guess if you’re unsure.

Wrapping Up

Understanding how the CFA exam is scored is essential for tackling this challenging certification. By knowing the scoring system and how your performance is evaluated, you can study smarter and focus on the right areas. Stay dedicated, and remember you’ve got this.

Feel free to explore more study tips and resources on TakeMyCFAExam.com to help you on your journey to becoming a CFA charter holder. We’re here to support you every step of the way.