Paper · arXiv 2310.08678
Can GPT models be Financial Analysts? An Evaluation of ChatGPT and GPT-4 on mock CFA Exams
Ethan Callanan, Amarachi Mbakwe, Antony Papadimitriou, Yulong Pei, Mathieu Sibue, Xiaodan Zhu, Zhiqiang Ma, Xiaomo Liu, Sameena Shah
LLMs, evaluated using CFA exam questions, show mixed performance in financial reasoning across different scenarios, highlighting areas for improvement and future research.
Abstract
Large Language Models (LLMs) have demonstrated remarkable performance on a wide range of Natural Language Processing (NLP) tasks, often matching or even beating state-of-the-art task-specific models. This study aims at assessing the financial reasoning capabilities of LLMs. We leverage mock exam questions of the Chartered Financial Analyst (CFA) Program to conduct a comprehensive evaluation of ChatGPT and GPT-4 in financial analysis, considering Zero-Shot (ZS), Chain-of-Thought (CoT), and Few-Shot (FS) scenarios. We present an in-depth analysis of the models' performance and limitations, and estimate whether they would have a chance at passing the CFA exams. Finally, we outline insights into potential strategies and improvements to enhance the applicability of LLMs in finance. In this perspective, we hope this work paves the way for future studies to continue enhancing LLMs for financial reasoning through rigorous evaluation.