Level I of the
CFA® Exam

Before enrolling for Level I of the CFA exam, it is favorable for candidates to have general information about it. Since CFA Insitute operates globally,  the exam is offered in 170 cities in June and over 70 cities in December. Candidates must have a good grasp of English as there is no other language option. The exam consists of 180 multiple-choice questions and has two two-hour-and-fifteen-minute sessions. There are 90 multiple choice questions in each session, and all topics are covered in each session. Test takers have, on average, 1.5 minutes to spend on each question, which can be a daunting task considering the amount of calculation some of the questions require. Questions have three answer choices, and there are two different question formats – sentence completing format and question format. All questions are weighted equally, and candidates are not penalized for taking random guesses. Topics covered in the exam include Ethical and Professional Standards, Quantitative Methods, Economics, Financial Reporting and Analysis, Corporate Finance, Portfolio Management, Equity, Fixed Income, Derivatives, and Alternative Investments. These topics are divided into 58 readings and take from 75 to 150 hours to read. This is one of the reasons why candidates often substitute the CFA Program curriculum for AnalystPrep’s Study Notes.

Pass rates and passing scores are other important points that CFA Program candidates should consider. After the exam, the CFA Institute Board of Governors sets the minimum passing score for each level. The board assesses the passing score according to the difficulty of exams and demonstrated competency of candidates. Although it is possible to estimate the passing score based on previous results, passing scores are not announced by CFA Institute and cannot be known. Though, it is widely acknowledged that candidates who get more than 70% in general without getting less than 50% in Ethics can expect to pass the exam.

On the other hand, CFA Institute’s announced pass rates for the last three exams are around 43%. However, the pass rate is much lower for first-time exam takers and higher for those candidates retaking the exam for a second or third time. Compared to other levels of the CFA Program, level I has the lowest pass rates. Nonetheless, it is undeniable that the Level I exam is the easiest of the three levels. This contradiction stems from the gradual system of the CFA Program. Because previously successful  Level I candidates will be taking Level II, Level II candidates have a higher probability of passing the exam regardless of the difficulty. The same holds for Level III, which has the highest pass rate.

The pass rate for Level I of the CFA exam has been averaging around 40% over the past ten years, which shows just how rigorous the exams can be. However, there is no limit on the number of times you can take the CFA exam nor the time in years within which you should complete the program.

AnalystPrep’s Preparation Platform includes an advanced built-in analytics software that allows you to keep track of your progress by monitoring your performance and comparing it to a class average. View your stats easily in attractive charts and quickly identify your strengths and weaknesses. Then, adapt your study method and improve your strategy in the areas that need more attention. Finally, compare your results with thousands of candidates who join AnalystPrep’s Prep Platform each year and stay motivated in your study sessions.