Curiosity only - CFA, FRM - which one is more difficult?

[Liming]

Hello,

I'm actually not planning for a CFA certificate but I couldn't resist my curiosity for the above question. Is there anyone who has been through CFA and could share your opinion?
My impression of CFA is that is more towards investment portfolio construction and maximizing financial returns, with accounting and economics subjects as some of the major components. Based on this, I think it is not as "quant" as FRM and therefore not so difficult. But it could also be very challenging, due to the breath of subjects required?
Thank you for your thoughts!

Cheers
Liming
24/11/09

 

[mdecav]

The CFA is by far tougher - not because of the material, but because of how comprehensive the exam is and how the test is set up. The FRM is more 'difficult' becuase its more quantitative in nature.

A sizable portion of the CFA exam focuses on minor material, so you have to make sure you read and understand everything. Taking FRM Level 1, I was a little suprised at how much narrower the exam material was.

 

[troubleshooter]

If you took the FRM full exam, I would think that would have been a more difficult test than any of the CFA level. But CFA all three exams put together, I would say it is much more difficult and comprehensive than FRM. Yes, FRM is surely more quantitative.

 

[[email protected]]

My view are set out below:
FRM CFA
Risk Management More
Debt Assets Neutral Neutral
Derivative (Debt) More
Derivative (Equity) More
Equity Assets (Analysis) More
Alternative Assets (Analysis) More
Performance measurement More
Financial Statement Analysis More
Quantitative More
Portfolio Management More

- CFA has more stuff on the "return" side and FRM is more focus on the "Risk" side of the assets.
- CFA Level 1 exam is basic and should be manageable even for the non-quant. Not directly comparable to FRM Level I. The depth of FRM Level I exam is much deeper and quant as some of the topic in CFA level II and level III exam has already been covered in FRM Level I exam for example Sharpe, Jensen, Treynor, case study, Binomial Tree valuation, option strategy, greeks and etc.
- CFA Level II exam focus on valuation. Getting more quantitative
- CFA Level III exam is on portfolio management. Coverage is Wide
- The difficulty of the objective questions is comparable. It put you in stressed test for time management, reading speed, understanding of the subject and English test.

Cheers