liquidity

PistolPt Wrote:
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> I never felt comfortable though - in all these tests I totally guessed on at least 20% of all questions and moderately guessed on another 40%. Felt awful after the actual exam. Very depressed, but beginning to accept failure for the first time.
> time.

Here's the deal. There are 3 choices. If in the actual exam, you only knew the answer to say 50% of questions confirmed, and MPS was set at 69%, then you could still pass the exam if you just randomly chose the answers to remaining 50% of the questions. Purely based on luck, you have a 1 in 3 chance of getting it right, so 50% + 16.66% = 66.67%. Now to reach that 69% level, you have to count on the fact that you didn't shoot random darts on the remaining 50% of the questions, so hopefully, assuming you made educated guesses, you might have better than 1/3 probability of getting it right. Say 2/5, then you will get additional 20% score from the remaining portion of the exam, reaching you to your target of 70%.

The above theory suggests why sometimes some students who didnt really bust their a$$e$ for L2 sometimes pass, and in other cases, others who busted their chops fail.

To improve the quality of the exam, CFA institute must follow my suggestion:
- Break up each level into 3 exams, and during each exam only test 3-4 subjects (out of the total 10) Give atleast 1 week between exams.
- Flip side, raise the minimum passing score to 80% but make the exam itself easier.

This way, you are making the exam easier, but still ensuring that you dont get anyone passing it by fluke! Also, since you are giving 1 week between exams to focus on individual topics, you can afford a higher passing mark.

This is the only way to ensure quality people pass.