CFA Level I Practice Test
Build your confidence for CFA Level I. Practice the concepts, understand the answers, and strengthen your knowledge one question at a time.
Try a sample questionExam overview and details
The CFA Level I examination is the foundational credential offered by the CFA Institute, representing the first of three rigorous levels required to earn the Chartered Financial Analyst (CFA) charter. This globally recognized certification establishes a comprehensive understanding of investment analysis, portfolio management, and ethical standards. Passing Level I validates a candidate's mastery of the essential tools of the finance profession, including quantitative methods, economics, financial reporting, and securities analysis. It serves as a critical benchmark for employers, signaling a serious commitment to the highest standards of professionalism and technical competence. Earning this credential enhances credibility, opens doors to advanced roles in asset management, equity research, and investment banking, and forms the indispensable core knowledge base upon which subsequent levels build. It is the definitive first step for finance professionals seeking to distinguish themselves in a competitive global marketplace.
Sample Questions
Choose an answer and explore the explanation to see how practice works.
An analyst annualizes a quarterly holding-period return of 1.8% using simple interest because the quarter was exactly three months. Which annualized return is closest using effective annual compounding?
A portfolio's actual return is 8%, benchmark return is 6%, active return volatility is 4%, and portfolio standard deviation is 12%. Which measure evaluates active return per unit of active risk?
A bond is quoted with a clean price of 98.40 and accrued interest of 1.25. What cash price does the buyer pay before commissions?
A company announces a spin-off of a slow-growth division. Management says the remaining company will have higher margins and a clearer capital-allocation policy. Which valuation effect is most plausible?
A market has four firms with shares of 45%, 25%, 20%, and 10%. The two largest propose a merger. Which measure most directly indicates increased market concentration?
Career Opportunities & Salary
Exam insights and study advice
Achieving the CFA Level I certification matters because it is a powerful, globally recognized signal of dedication, ethical grounding, and technical proficiency in finance. It directly impacts career advancement by qualifying candidates for more sophisticated analytical and investment roles, often leading to increased compensation and professional responsibility. The charter is a prerequisite for many senior positions in asset management, research, and advisory services, and its rigorous curriculum ensures charterholders possess a common, high-standard knowledge framework respected by institutions and clients worldwide.
What this exam covers
Use the published domain weights to plan your study. Practice results do not predict your certification exam score.
01Ethical and Professional Standards
CFA Institute Code of Ethics and Standards of Professional Conduct, Global Investment Performance Standards (GIPS), ethical decision-making framework
02Financial Statement Analysis
Financial reporting standards, income statements, balance sheets, cash flow statements, financial analysis techniques, inventories, long-lived assets, taxes, and quality of financial reports
03Corporate Issuers
Corporate governance, capital investment decisions, working capital management, capital structure, leverage, dividend policy, and ESG considerations
04Economics
Demand and supply analysis, firms in market structures, aggregate output, business cycles, monetary and fiscal policy, international trade, and currency exchange rates
05Equity Investments
Market organization, security market indices, market efficiency, overview of equity securities, equity valuation concepts and basic tools
06Fixed Income
Fixed-income securities features, risks, valuation, term structure, yield spreads, and interest rate risk
07Quantitative Methods
Time value of money, statistical concepts, probability distributions, sampling, hypothesis testing, linear regression, and machine learning basics
08Alternative Investments
Private capital, real estate, natural resources, hedge funds, infrastructure, and digital assets overview
09Derivatives
Derivative instrument features, forward commitment and contingent claim pricing and valuation, risk management applications
10Portfolio Management
Portfolio risk and return, portfolio planning, asset allocation, risk management, and fintech in investment management