Why is CFA Institute changing the CIPM Principles exam from questions with four answer choices to questions with three choices?
It is an improvement we have been considering for many years. We have followed the research of respected psychometricians in this field and have consulted with them on the benefits of making this change. In evaluating CFA exams we found that the fourth choice on the majority of selected response questions (multiple choice and item set) is frequently ineffective – attracting relatively few candidates. It is worth remembering the last time CFA Institute made a major change in the structure of the exams. In 2000, we began to phase item-set questions into Level II and III CFA exams. Item sets are short (approximately 1−2 pages) case studies followed by six selected response questions. Candidates must analyze the information provided in the case to determine the correct answers. Some members felt very strongly that this change represented a certain “dumbing down” of the exams. However, all evidence points to no degradation in the quality and rigor of CFA exams. Candidate performance on item
