The Level I CFA® Examination
The 2008 Level I CFA® Exam focuses on the tools and inputs relating to investment valuation and portfolio management. It also introduces basic concepts regarding securities laws, regulations, and ethical and professional conduct. The emphasis here is on knowledge and comprehension.
The six-hour Level I exam consists entirely of multiple-choice questions and is divided equally into morning and afternoon sessions. The morning session covers 120 questions, followed by a lunch break. The remaining 120 questions are administered in the afternoon. Because some questions take longer to answer, and others require less time, the average time allotment per question is 1½ minutes. The afternoon session covers the same topics as the morning session in exactly the same order. Each session is a self-contained unit: you cannot circle back and answer morning session questions in the afternoon.
Download a sample of multiple choice questions
Exam Topics
Not all topic areas are given equal weight at each level of the CFA Exams. Although variations in weighting occur from year to year, and the categorization of multifaceted problems is open to some interpretation, an approximate breakdown of the relative importance of the different topic areas for the Level I exam is as follows:
- Ethical and Professional Standards, 10-20 percent
- Investment Tools 45-55 percent
- Quantitative Analysis, 7-17 percent
- Economics, 5-15 percent
- Financial Statement Analysis, 15-25 percent
- Corporate Finance, 3-13 percent
- Asset Valuation, 45-55 percent
- Equity Investments, 5-15 percent
- Fixed Income Investments, 5-15 percent
- Derivatives, 0-10 percent
- Alternative Investments, 0-10 percent
- Portfolio Management, 0-10 percent
Prepare thoroughly
While the exam writers attempt to cover important subjects thoroughly, they also try to make the tests different from year to year to prevent candidates from "gaming" the exam. Learning Outcome Statements (LOS) that have been emphasized in past may not be in the current year. CFA Institute Study Guides cover a sufficient number of readings and sub-topics to ensure that many will be covered on the exam, but others will not. There is no way to determine in advance which sub-topics will be covered, and which ones will be ignored in any given year. Candidates are advised, therefore, to prepare thoroughly for all subjects assigned in the study program.
Although the overall passing score is not predetermined, we recommend that you aim for an overall score of 70 percent or better. Remember, the goal is not a perfect score, but a passing score.
When you take the exam, we recommend that you complete it in two or three passes. On your first pass through the exam, answer only those questions that you find easy and can answer quickly. You can miss quite a few questions and still pass, so don't become frustrated or anxious if you find yourself skipping what seems like a lot of questions at first.
After completing your first pass, you will feel more relaxed and find that you can answer more of the questions that you had previously skipped. No penalty is imposed for wrong answers, so leave no answer blank. Don’t underestimate the psychological impact of time pressure. Condition yourself to stay calm and focused throughout your exam, regardless of how you perceive your performance at the time.
If you are a Stalla student and have followed our program as advised, we have every confidence you will succeed. As you know, however, the CFA Examinations are comprehensive and very difficult, time-pressured, and fatiguing. The key to passing is preparation.
