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Preparation Guide for CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam
Introduction
The Chartered Financial Analyst is one of the most common designations for investment professionals (CFA). However, it is not for the weak of heart or people who are not interested in being a CFA cardholder. The journey to becoming a CFA holder is long and measures not only the competence but also the strength, dedication and stamina of the topic. According to the CFA Institute, the present curriculum is ideally described as a distance learning programme at its own rate which adopts a general approach to the study, evaluation and management of portfolios which highlights the highest ethical and technical expectations. The CFA curriculum includes three examinations: CFA Level I, Level II and Level III. The CFA applicants must pass both of these exams and they must fulfil certain work requirements defined by the CFA Institute. In December 2017, the progress rate for the Level I exam was 43 percent. For each of these three stages, the curriculum is designed to assess a broad range of skills that are most appropriate for investing professions. In this post, we will focus on the Level I CFA review. CFA Level 1 exam dumps and CFA Level 1 practice exams are designed to render the entire examination environment comfortable for the students.
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Format: Multiple choices, multiple answers:
Language: English
Duration of Examination: 6 hours
Number of Questions: 120
Passing score: 70%
Reference: https://www.cfainstitute.org/programs/cfa-program/candidate-resources/level-i-exam
Salaries for CFA level 1 Certified Professionals may vary by country. The estimated salaries of a CFA level 1 exam test given below:
United States: 15,000 USD
India: 7,15,437 INR
Europe: 92,000 Euro
England: 78,000 Pounds
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Financial Statement Analysis | 11–14% | - Income statement, balance sheet, cash flow statement - Inventories, long-lived assets, taxes, debt - Financial reporting standards - Ratio analysis and profitability |
| Topic 2: Ethical and Professional Standards | 15–20% | - Global Investment Performance Standards (GIPS) - Code of Ethics and Standards of Professional Conduct |
| Topic 3: Equity Investments | 11–14% | - Industry and company analysis - Market organization and structure - Equity valuation models |
| Topic 4: Economics | 6–9% | - Monetary and fiscal policy - Macroeconomics - International trade and currency markets - Microeconomics |
| Topic 5: Corporate Issuers | 6–9% | - Business and financial risk - Capital budgeting - Capital structure - Corporate governance |
| Topic 6: Portfolio Management | 8–12% | - Asset allocation and performance measurement - Portfolio planning and construction - Risk and return concepts |
| Topic 7: Derivatives | 5–8% | - Derivative pricing and valuation basics - Derivative markets and instruments - Forwards, futures, options, swaps |
| Topic 8: Quantitative Methods | 6–9% | - Statistical concepts and returns - Time value of money - Regression and time-series analysis - Probability and hypothesis testing |
| Topic 9: Alternative Investments | 7–10% | - Commodities and infrastructure - Investment characteristics and returns - Private equity, real estate, hedge funds |
| Topic 10: Fixed Income | 11–14% | - Bond valuation and risk measures - Yield measures, spot rates, forward rates - Fixed income securities characteristics |
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