CFA Level 1 - Introduction
The Chartered Financial Analyst® (CFA®) programme is the professional qualification administered and awarded by the CFA Institute, based in the United States.
The programme is enjoying dramatic growth worldwide, which the CFA Institute attributes to the relevance of the syllabus, the rigour of the examination and the high standards of professionalism that it demands. In short, it is becoming the accepted benchmark for technical excellence in the financial markets.
Candidates must pass three levels of examinations sequentially. Each level is based on the same 'body of knowledge' and candidates face six hours of examination, a three-hour morning session and a three-hour afternoon session. CFA Level I exam takes place twice a year (June and December). CFA Levels II & III exams are held once a year (June).e
The programme is enjoying dramatic growth worldwide, which the CFA Institute attributes to the relevance of the syllabus, the rigour of the examination and the high standards of professionalism that it demands. In short, it is becoming the accepted benchmark for technical excellence in the financial markets.
Candidates must pass three levels of examinations sequentially. Each level is based on the same 'body of knowledge' and candidates face six hours of examination, a three-hour morning session and a three-hour afternoon session. CFA Level I exam takes place twice a year (June and December). CFA Levels II & III exams are held once a year (June).e
Exam Topics
In general, for the Level I exam you will be asked basic knowledge and comprehension questions focusing on investment tools, and some questions will require analysis. Level II further emphasizes analysis along with application, while Level III focuses on synthesizing all of the concepts and and analytical methods in a variety of applications for effective portfolio management and wealth planning.
CFA Level 1 Exams
The Level I exams include 240 total multiple choice questions, 120 on the morning session of the exam and 120 on the afternoon session. Each multiple choice question is free-standing (not dependent on other questions) and has three possible answers: A, B, and C. All questions are equally weighted and there is no penalty for guessing.While you are taking the Level I multiple choice exam, remember:
- Carefully manage your time. Don’t spend too much time on any one question or topic area. On average, you should allocate 1.5 minutes to each multiple choice question, including time to record your answer on the answer sheet.
- Read the questions carefully. A careless “skimming” of the question may lead you to a completely different, and incorrect, answer.
- Read each item carefully and eliminate obviously incorrect answers. If you have to guess and you can eliminate one of the responses, your odds of answering the question correctly are much higher. There is no penalty for guessing.
- Mark your answers on the answer sheet as you complete each question. Some candidates mark their answers in the exam book and wait until the end of the exam to complete the answer sheet. This is not an advisable strategy.
- Expect to encounter questions that you will not be able to answer correctly. There is a great deal of material to master and exam questions are challenging. Standard setters and the Board of Governors (at all three levels) take account of exam difficulty in setting Minimum Passing Scores. For a full description of how the MPS is established, see The CFA Program: Our Fifth Decade (PDF).
- Examination writers use a standard set of formatting conventions on the multiple choice questions. Many sample exams produced by third parties do not follow these conventions, so review the CFA Institute format presented below.
- Familiarize yourself with the instructions for filling out your answer sheet (PDF). Instructions are also available at the time of the exam.
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