Most Expected Things You Should Know about 3 Levels of CFA Exam (Part 1)

The path to becoming a CFA charter holder is so toilsome and tough because it not only tests your knowledge of subject but also mentally challenge your diligence and inquisition during the learning process. Besides taking part in dedicated courses, CFA program is encouraged more self-studying, that focuses on ethical and professional standards and investment analysis and portfolio management.

Below are the Most Expected Things You Should Know about 3 Levels of CFA Exam (Part 1). The CFA program includes three exams held at the test centers all over the world. Three CFA Levels must be overcomed sequentially considered as a condition to become a CFA chartered holder. The exam topics for each of these three levels are designed to test you on extensive skills considered to be most relevant for the investment profession.

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CFA Level I Exam

Exam Structure and Format

CFA Level 1 exam consists of 3-hour morning and afternoon session and 120 independent multiple choice questions for each session. They can be answered correctly by applying only the information provided in the question and your subject knowledge. So, it’s not a good idea if mention outside information; they are not often designed to cause you wrong ideas about questionnaire.

Exam Curriculum

The exam focuses on concepts and foundations of investment valuation and portfolio management. The curriculum consists of four areas, specifically: ethical and professional standards (15% of exam weight), investment tools (50% of exam weight), asset classes (30% of exam weight), and portfolio management (5% of exam weight) breaking into 10 topics. Below is the weight of each topic in detail:

Ethical and Professional Standards – Exam Weight: 15%
Quantitative Methods – Exam Weight: 12%
Economics – Exam Weight: 10%
Financial Reporting and Analysis – Exam Weight: 20%
Corporate Finance – Exam Weight: 7%
Portfolio Management – Exam Weight: 7%
Equity – Exam Weight: 10%
Fixed Income – Exam Weight: 10%
Derivatives – Exam Weight: 5%
Alternative Investments – Exam Weight: 4%

CFA Level II Exam

Exam Structure and Format

The same as Level I, Level II also includes multiple choice questions. However, they are divided into item set questions. There are totally 10 item sets for each session and each item set consists of six multiple choice questions. You will use the information provided in the case statement to answer those questions.

Exam Curriculum

While the topics of Level I exam focus on investment tools more than asset classes and portfolio management, those of Level II emphasizes asset classes with 35-75% of exam weight, although the investment tools is still 30-60%. After grasping all concepts learned in Level I, you will be applied them into real-life situations presented by mini-cases. Follow are detailed exam weight for each topic: