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CFA Level 1 Exam Information and Sample Questions

The Chartered Financial Analyst – CFA Exam consists of three parts, all three must be passed in sequentially order to obtain this prestigious charter. This post is regarding the first of three CFA exams. The CFA level 1 exam focuses on tools and concepts that apply to investment valuation and management. There will be light analysis that will be required.

Details of the CFA Level 1 Exam:

  • Time Limit: 6 hours – (2) three hour sessions
  • Cost:  Variessee CFA exam fees page
  • # of Questions: 240
  • Format: Multiple Choice (A, B or C) – Questions are either in question or sentence format
  • Prerequisite: Bachelor’s degree or an equivalent.
    • Exemptions: In your last year as an undergraduate or 4 years of related work experience or combination of both adding up to 4 years.
  • Exam Dates: June and December.  See the CFA Exam schedule.
  • Pass Rate: 43%% – June 2016

2017 CFA Level 1 Topics

The following are exam topics and the weights in parenthesis ();

  • Ethical and Professional Standards (15%)
  • Quantitative Methods (12%)
  • Economics (10%)
  • Financial Reporting and Analysis (20%)
  • Corporate Finance (7%)
  • Portfolio Management (7%)
  • Equity Investments (10%)
  • Fixed Income (10%)
  • Derivatives (5%)
  • Alternative Investments (4%)

Sample CFA Exam 1 Questions

Example 1 (Sentence completion)
An analyst suspects that a particular company’s U.S. GAAP financial statements may require adjustment because the company uses take-or-pay contracts. The most likely effect of the appropriate adjustments would be to increase that company’s

A. return on assets.
B. debt-to-equity ratio.
C. interest coverage ratio.

Example 2 (Question)
An analyst suspects that a particular company’s U.S. GAAP financial statements may require adjustment because the company uses take-or-pay contracts. Which of the following is most likely to increase as a result of the appropriate adjustments being made to that company’s financial statements?

A. Return on assets.
B. Debt-to-equity ratio.
C. Interest coverage ratio.

Credit: CFA Institute

Already taken and passed Exam I? First off, congrats! Second, go to CFA Exam II and find out all relevant information pertaining to the next exam.

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