If you're planning to pursue a career in finance, becoming a Chartered Financial Analyst (CFA®) is an excellent way to demonstrate your knowledge and expertise. The CFA® Program is one of the most respected designations in the financial industry and is recognized worldwide. The CFA® Level I exam is the first of three exams required to earn the CFA® designation. It is essential to have a thorough understanding of the exam content, format, and process to pass the CFA® Level I exam successfully.
The CFA® Level I exam is designed to test your knowledge of finance, economics, and accounting. The exam is divided into ten topics, which are:
- Ethical and Professional Standards
- Quantitative Methods
- Financial Reporting and Analysis
- Corporate Finance
- Equity Investments
- Fixed Income
- Alternative Investments
- Portfolio Management and Wealth Planning
The exam questions are equally distributed among these topics. Candidates are expected to have a deep understanding of each topic and its subtopics.
The CFA® Level I exam is a computer-based test consisting of 180 multiple-choice questions. The exam is divided into two sessions, each lasting three hours. The cost of the exam varies depending on the registration date. The registration fee ranges from $700 to $1,000. The passing score for the exam is not disclosed by the CFA® Institute.
The exam is available in two delivery methods: in-person and online proctoring. Candidates can choose to take the exam in-person at a testing center or online from their home or office. The exam format and content are the same for both delivery methods.
Who should take the exam?
The CFA® Level I exam is intended for individuals interested in pursuing a career in finance, specifically in investment management or financial analysis. Candidates should have a bachelor's degree or be in the final year of their undergraduate program. Candidates should also have at least four years of professional work experience or a combination of work experience and education.
There are several study materials and resources available to help candidates prepare for the CFA® Level I exam. Some of the popular books include:
- CFA Institute Investment Series: Financial Statement Analysis: A Practitioner's Guide
- CFA Program Curriculum 2022 Level I Volumes 1-6 Box Set (CFA Curriculum 2022)
- CFA Level 1 Study Guide 2022: Comprehensive Review with Practice Questions and Mock Exams to Pass the CFA Level I Exam
- Wiley 11th Hour Guide for 2022 Level I CFA Exam: The Efficient, Last-Minute Review
- CFA Program Curriculum 2022 Level I Reading 1: Ethics and Professional Standards
It is recommended to use the CFA® Institute's official study materials along with third-party resources for better preparation.
Preparing for the CFA® Level I exam requires dedication, hard work, and a deep understanding of the exam content. It is recommended to create a study plan, use multiple resources, and practice solving sample questions and mock exams. With a proper study plan and resources, passing the CFA® Level I exam can be achievable.