We're in the midst of analysing the June 2013 results, and again, it seems that background does have a profound influence in performance. However interestingly enough, candidates with financial education but not financial work experience consistently underperform all other demographics, and candidates with no background in finance at all do quite well. My theory is complacency - perhaps candidates with a bit of knowledge tend to take it easier than e.g. candidates that don't have any financial knowledge or background. Certainly underestimating the CFA exams (by starting late, or not doing enough) is the surest way to not pass. Thoughts?

I suspect it is because they think they know but really don't. They overestimate their ability? Exactly my theory. I know it's only a guess, but I can't think of anything else to explain that.

It might also be that not all finance background are created equally. I find this especially at work. I am sometimes puzzled at all the stuff my so called finance background fellows don't know. I think that might have a minor impact. That may well be true, but does not explain why it has a negative impact on CFA pass rates.

A CFA General Discussion About Results Analysis - Background Matters, But Not In The Way You Think.

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This topic has 5 replies, 3 voices, and was last updated Jun-177:57 am by christine.

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- christine
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  09 Jun 2017 at 7:57 am
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  I suspect it is because they think they know but really don’t. They overestimate their ability?
  
  Exactly my theory. I know it’s only a guess, but I can’t think of anything else to explain that.
- Sarah
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  08 Jun 2017 at 8:50 am
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  It might also be that not all finance background are created equally. I find this especially at work. I am sometimes puzzled at all the stuff my so called finance background fellows don’t know. I think that might have a minor impact.
- christine
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  08 Jun 2017 at 6:52 pm
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  It might also be that not all finance background are created equally. I find this especially at work. I am sometimes puzzled at all the stuff my so called finance background fellows don’t know. I think that might have a minor impact.
  
  That may well be true, but does not explain why it has a negative impact on CFA pass rates.
- Maroon5
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  - CFA Level 1
  08 Jun 2017 at 8:49 am
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  Thanks for sharing this with us @christine! It seems like a consistent trend.
  
  I wonder what are the profiles of these candidates who have finance background but yet not working in finance, yet are taking CFA? Seems counterintuitive in certain ways, for example I’d have thought that it’d be easier for them (or less of a need) to take CFA if I assume they want to switch into finance? So I wonder if there’s a sample bias there in the sense that in general, finance educated, yet currently not working in finance CFA candidates are of “lower quality” in some ways?
  
  Just a thought of an alternative possibility…
- Sarah
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  08 Jun 2017 at 7:13 pm
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  I suspect it is because they think they know but really don’t. They overestimate their ability?
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