| 2024 CFA Level I Tructic and weight | |
|---|---|
| Subject | Examination weight |
| Ethical and professional standards | 15% to 20% |
| Quantitative methods | 6% to 9% |
| Economy | 6% to 9% |
| Financial state analysis | 11% to 14% |
| Business transmitters | 6% to 9% |
| Portfolio management | 8% to 12% |
| Equity investments | 11% to 14% |
| Fixed income | 11% to 14% |
| Derivatives | 5% to 8% |
| Alternative investments | 7% to 10% |
Source: CFA Institute.
Ethics and professional standards
This section covers the Ethics Codeprofessional standards, and Global Investment Performance Standards (GIPS). There are about 27 to 36 questions about the subject, and the Institute itself takes this section very seriously.
If the scores are weak or close to the minimum passage score on all other subjects, the score on this section could determine if a candidate passes or fails. An advantage of the study of ethics is that it also helps to prepare level II and level III exams.
Quantitative methods
Although ethics is more focused on the scenario and easy to follow, the quantitative method section could be intimidating for some students.
A doctorate. In mathematics, it is not necessary to do well in quantitative methods, but having a training in statistics will certainly be useful. A weight of 6% to 9% means that candidates should expect 11 to 16 questions about quantitative methods.
The subjects covered aim to provide knowledge of analytical tools and techniques which are essential for financial analysis and investment decision -making.
The key subjects discussed include the Money time value; Probability distributions and concepts; sampling and estimate; regression analysis; Artificial intelligence, automatic learning and analysis and Big Data applications.
Economy
The economic section tests knowledge of the basic micro and macroeconomics concepts. These include the analysis of supply and demand; the company and the organization of the industry; inflation and deflation; Trade flows and international capital; exchange rate; monetary, monetary and budgetary system; and commercial cycles and their effect on economic activity. The economy represents between 6% and 9% of the level I examination.
Financial state analysis
This is the second largest section of level I review, with a weight of 11% to 14%. The analysis of the financial statements has only a slightly lower weight for level II lesson, it is therefore important to spend enough time studying this area to build a solid base for subsequent examinations.
The candidates will be invited to analyze and interpret the primary financial statements (assessment, income statement and state of cash flows), Know the ratiosAnd many concepts such as global operations, intercortive investments and business combinations, the construction of company's financial models and ESG considerations.
Since the examination is a global examination, it does not cover local accounting practices. The emphasis is more placed on widely accepted standards, as we Paving And Ifrs.
Business transmitters
After financial information and analysis, the section on the financing of companies, which has a weight of 6% to 9% on level I examination.
It provides an introduction to corporate governance, as well as investment and financing decisions. This area also highlights the growing impact of environmental and social considerations in investment. Key subjects include corporate structures and strategies, ownership and governance and financing decisions.
Portfolio management
The level I examination only presents the basics of portfolio management. Important concepts are the Modern portfolio theory and the Capital asset pricing model.
There are between 14 and 22 questions in this article, which acts as preparation for levels II and III, where the emphasis is more on the application of knowledge on portfolio management.
Equity investments
The shares section covers stock markets and instruments, as well as tools and techniques for the assessment of companies. Applicants should pay particular attention to this section, because it lays the basics of a more in -depth study at levels II and III. About 11% to 14% of questions about level I exam are on stocks, and the majority of issues focus on promoting and analyzing businesses.
Fixed income
After the actions, the examination then takes care of the fixed income markets and their instruments. Applicants are required to understand the characteristics of various fixed income titles and how prices. Certain important concepts are performance measures, duration and convexity.
This section also deals with structured products, such as Titles backed by mortgage claims And Guaranteed mortgage obligationsamong others. Fixed income issues represent 11% to 14% of the exam.
Derivatives
Similar to portfolio management, Derivatives are only introduced in level I. The candidates will be tested on the basics of future, advantages, exchanges, options and cover techniques using these derivatives. This section has only 5% to 8% at level I review, which is new to 15 questions.
Alternative investments
This section focuses on Alternative investments Including real estate, investment capital, hedge funds, infrastructure and basic products. The level I study program for alternative investments is in an introduction nature, with a 7% to 10% examination weight, so expect 12 to 18 questions.
Given the growing importance of this asset class in the last periods and the fact that it has a slightly higher weight in levels II and III, candidates must deal with this section seriously.
Test advice on the day of the examination
All CFA examinations are now administered by computer tests in proxy exam centers in more than 400 locations worldwide.
The examination centers have close safety measures in place, and each center closely monitors the candidates to detect any forms of cheating.
The CFA Institute offers the following test advice for the CFA Level I examination day:
- Be comfortable with the features of your calculator and make sure how to use them to respond to the instructions for learning results. The authorized calculators are either Texas Instruments BA II more, or the Hewlett Packard 12C.
- Examination questions referring to financial reports and analysis are based on IFRS, unless otherwise indicated. If Us Gaap is used, this will be stated in the question.
- Answer all questions because there is no penalty for incorrect answers.
- Although there is no dress code for exams, dress in layers in comfort for comfort.
Is there a break between session 1 and session 2 of the CFA Level 1 exam?
There is an optional 30 -minute break between session 1 and session 2.
How long do I need for level I review?
The CFA Institute recommends spending at least 300 hours to study for the level I exam. In a survey in 2019 (the last available), the candidates spent an average of 303 hours to study for the level I exam.
If I do not pass the examination of the CFA I level, how long should I wait before I can take it back?
Each candidate who does not pass his exam will have to wait at least six months to take it back.
The bottom line
Overall, the CFA Level I exam is well balanced, with a wide range of subjects. Certain subjects may require proportionally more time to study than others; However, what is important is to create a study plan and stay with it.