The State of the Art of Large Language Models on Chartered Financial Analyst Exams

Mahmoud Mahfouz, Ethan Callanan, Mathieu Sibue, Antony Papadimitriou, Zhiqiang Ma, Xiaomo Liu, Xiaodan Zhu


Abstract
The Chartered Financial Analyst (CFA) program is one of the most widely recognized financial certifications globally. In this work, we test a variety of state-of-the-art large language models (LLMs) on mock CFA exams to provide an overview of their financial analysis capabilities using the same evaluation standards applied for human professionals. We benchmark five leading proprietary models and eight open-source models on all three levels of the CFA through challenging multiple-choice and essay questions. We find that flagship proprietary models perform relatively well and can solidly pass levels I and II exams, but fail at level III due to essay questions. Open-source models generally fall short of estimated passing scores, but still show strong performance considering their size, cost, and availability advantages. We also find that using textbook data helps bridge the gap between open-source and proprietary models to a certain extent, despite reduced gains in CFA levels II and III. By understanding the current financial analysis abilities of LLMs, we aim to guide practitioners on which models are best suited for enhancing automation in the financial industry.
Anthology ID:
2024.emnlp-industry.80
Volume:
Proceedings of the 2024 Conference on Empirical Methods in Natural Language Processing: Industry Track
Month:
November
Year:
2024
Address:
Miami, Florida, US
Editors:
Franck Dernoncourt, Daniel Preoţiuc-Pietro, Anastasia Shimorina
Venue:
EMNLP
SIG:
Publisher:
Association for Computational Linguistics
Note:
Pages:
1068–1082
Language:
URL:
https://aclanthology.org/2024.emnlp-industry.80
DOI:
Bibkey:
Cite (ACL):
Mahmoud Mahfouz, Ethan Callanan, Mathieu Sibue, Antony Papadimitriou, Zhiqiang Ma, Xiaomo Liu, and Xiaodan Zhu. 2024. The State of the Art of Large Language Models on Chartered Financial Analyst Exams. In Proceedings of the 2024 Conference on Empirical Methods in Natural Language Processing: Industry Track, pages 1068–1082, Miami, Florida, US. Association for Computational Linguistics.
Cite (Informal):
The State of the Art of Large Language Models on Chartered Financial Analyst Exams (Mahfouz et al., EMNLP 2024)
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PDF:
https://aclanthology.org/2024.emnlp-industry.80.pdf
Poster:
 2024.emnlp-industry.80.poster.pdf