CFA Level 1 Exam Prep | CFA Level 1 Study Guide

Excel on the CFA Level 1 with Comprehensive Preparation

Tailored practice to enhance your CFA Level 1 performance.

Extensive question bank covering all CFA Level 1 topics.
Adaptive learning to focus on areas needing improvement.
Build confidence with effective practice and detailed feedback.

Premium CFA Level 1 Prep at a Competitive Price

Achieve your finance career goals with comprehensive support and resources.

Trusted by 20,000+ students

4.6/5.0

Free

CFA Level 1 Exam Free Access

$0

Start practicing with no commitment by creating a free account.

Features:

Up to 3 practice questions per day
Access to free questions tier
Basic question selection

Premium

CFA Level 1 Exam Subscription

$9.99 / month

Unlock all features and maximize your score. Cancel anytime.

Features:

Unlimited practice questions
Access to premium questions tier
Dashboard with detailed analytics
Personalized score improvement tips
Identify strengths & weaknesses
Adaptive question selection algorithm
AI-powered question explanations

Master All Sections of the CFA Level 1 Exam

Access comprehensive practice materials for the most popular exams.

Alternative Investments

Description: This section covers alternative investment types, including real estate, hedge funds, private equity, commodities, and infrastructure.

Corporate Finance

Description: This section covers corporate governance, capital budgeting, cost of capital, measures of leverage, and working capital management.

Derivatives

Description: This section covers derivative instruments, including forwards, futures, options, and swaps, and their use in risk management.

Economics

Description: This section covers microeconomics, macroeconomics, international economics, and their applications in financial analysis.

Equity Investments

Description: This section covers types of equity securities, stock markets, and valuation techniques for equities.

Ethical and Professional Standards

Description: This section covers the CFA Institute Code of Ethics and Standards of Professional Conduct, including the Global Investment Performance Standards (GIPS).

Financial Reporting and Analysis

Description: This section covers financial reporting procedures and standards, financial statement analysis, and the application of various accounting techniques.

Fixed Income

Description: This section covers fixed income securities, their markets, valuation, and analysis.

Portfolio Management

Description: This section covers the fundamentals of portfolio management, including portfolio risk and return, asset allocation, and investment policy statements.

Quantitative Methods

Description: This section covers quantitative techniques essential for financial analysis, including time value of money, statistical concepts, probability theory, and hypothesis testing.

Dive Deeper into Exam Categories

Alternative Investments Categories

Alternative Investment Evaluation

Methods to evaluate alternative investments.

Due Diligence:
Evaluating alternative investments.
Performance Measurement:
Assessing returns and risks.
Risk Management:
Risks unique to alternative assets.
Valuation Techniques:
Methods for valuing alternatives.

Try an Example Question:

Types of Alt Investments

Understanding different alternative investments.

Commodities:
Investments in commodity markets.
Hedge Funds:
Strategies and structures of hedge funds.
Private Equity:
Investing in private companies.
Real Estate:
Investing in property assets.

Try an Example Question:

Corporate Finance Categories

Capital Budgeting

Evaluating investment projects.

Capital Rationing:
Allocating limited capital.
Cash Flow Estimation:
Estimating project cash flows.
Investment Decision Criteria:
NPV, IRR, Payback Period.
Project Analysis:
Evaluating project risks.

Try an Example Question:

Cost of Capital

Calculating a firm's cost of capital.

Cost of Debt:
Calculating cost of debt financing.
Cost of Equity:
Estimating cost of equity capital.
Marginal Cost of Capital:
Analyzing marginal capital costs.
Weighted Average Cost of Capital:
Calculating WACC.

Try an Example Question:

Measures of Leverage

Understanding operating and financial leverage.

Breakeven Analysis:
Calculating breakeven points.
Financial Leverage:
Use of debt financing.
Operating Leverage:
Impact of fixed costs on profits.
Total Leverage:
Combined operating and financial leverage.

Try an Example Question:

Working Capital Management

Managing short-term assets and liabilities.

Accounts Payable Management:
Optimizing payment terms.
Accounts Receivable Management:
Managing credit policies.
Cash Management:
Optimizing cash balances.
Inventory Management:
Efficient inventory control.

Try an Example Question:

Derivatives Categories

Derivative Markets and Instruments

Overview of derivative markets and instruments.

Derivative Risks:
Risks associated with derivatives.
Exchange-Traded Derivatives:
Features of exchange-traded contracts.
Over-the-Counter Derivatives:
OTC derivatives characteristics.
Uses of Derivatives:
Applications in risk management.

Try an Example Question:

Derivative Pricing and Valuation

Understanding pricing and valuation of derivatives.

Forward Contracts:
Pricing and valuation of forwards.
Futures Contracts:
Understanding futures markets.
Options:
Pricing options and strategies.
Swaps:
Valuation of swap agreements.

Try an Example Question:

Economics Categories

International Economics

Trade theories and exchange rates.

Balance of Payments:
Economic transactions recording.
Exchange Rates:
Currency exchange rate effects.
International Trade:
Benefits and theories of trade.
Trade Restrictions:
Tariffs and trade agreements.

Try an Example Question:

Macroeconomics

Study of the economy as a whole.

Business Cycles:
Economic expansion and contraction.
GDP and Growth:
National income measurement.
Monetary and Fiscal Policy:
Government economic policies.
Unemployment and Inflation:
Labor markets and price levels.

Try an Example Question:

Microeconomics

Study of individual markets.

Cost of Production:
Production costs analysis.
Demand and Supply Analysis:
Market equilibrium and shifts.
Elasticity:
Responsiveness of demand or supply.
Market Structures:
Types of market competition.

Try an Example Question:

Equity Investments Categories

Equity Markets and Instruments

Understanding equity securities and markets.

Common Shares:
Characteristics of common stock.
Preferred Shares:
Features of preferred stock.
Private Equity:
Investing in private companies.
Stock Exchanges:
Functions of stock markets.

Try an Example Question:

Equity Valuation Techniques

Methods for valuing equity securities.

Dividend Discount Models:
Valuing stocks using dividends.
Free Cash Flow Models:
Valuation using free cash flows.
Price Multiples:
Using P/E, P/B ratios.
Residual Income Models:
Valuing based on residual income.

Try an Example Question:

Ethical and Professional Standards Categories

CFA Institute Code and Standards

Understanding ethical principles and standards.

Conflicts - Disclosure:
Disclosing conflicts of interest.
Conflicts - Priority of Transactions:
Prioritizing client transactions.
Conflicts - Referral Fees:
Disclosing referral fees.
Duties - Confidentiality:
Preserving client confidentiality.
Duties - Fair Dealing:
Dealing fairly with all clients.
Duties - Loyalty and Care:
Acting in clients' best interests.
Duties - Performance Presentation:
Fair and accurate performance info.
Duties - Suitability:
Making suitable recommendations.
Employer Duties - Compensation:
Avoiding conflicts from compensation.
Employer Duties - Loyalty:
Acting in employer's best interests.
Employer Duties - Supervision:
Ensuring compliance by subordinates.
Integrity - Market Manipulation:
Avoiding market manipulation practices.
Integrity - Nonpublic Info:
Not acting on nonpublic information.
Investment Analysis - Communication:
Disclosing investment processes.
Investment Analysis - Diligence:
Diligent investment recommendations.
Investment Analysis - Records:
Maintaining proper records.
Professionalism - Independence:
Maintaining independence and objectivity.
Professionalism - Law Knowledge:
Understanding applicable laws and rules.
Professionalism - Misconduct:
Refraining from misconduct.
Professionalism - Misrepresentation:
Avoiding service misrepresentation.
Responsibilities - Conduct:
Upholding CFA Institute reputation.
Responsibilities - Reference to CFA:
Proper use of CFA designation.

Try an Example Question:

Global Investment Performance Standards

Understanding GIPS principles and objectives.

Compliance:
Requirements for GIPS compliance.
Key Concepts:
Composite construction and reporting.
Overview of GIPS:
Introduction to GIPS purpose and scope.
Verification:
Process and benefits of verification.

Try an Example Question:

Financial Reporting and Analysis Categories

Analysis Techniques

Techniques for financial analysis.

Common-Size Statements:
Standardizing financial statements.
DuPont Analysis:
Breaking down return on equity.
Ratio Analysis:
Liquidity, solvency, profitability ratios.
Trend Analysis:
Analyzing financial trends over time.

Try an Example Question:

Financial Statements

Understanding key financial statements.

Balance Sheet:
Assets, liabilities, equity.
Cash Flow Statement:
Cash inflows and outflows.
Income Statement:
Revenue and expenses.
Statement of Changes in Equity:
Equity changes over time.

Try an Example Question:

Financial Reporting Standards

Understanding IFRS and GAAP.

Comparison of IFRS and GAAP:
Key differences and impacts.
GAAP Framework:
US standards overview.
IFRS Framework:
International standards overview.
Reporting Quality:
Assessing quality of reports.

Try an Example Question:

Fixed Income Categories

Fixed Income Securities

Understanding bonds and debt instruments.

Bond Features:
Coupons, maturity, call provisions.
Bond Markets:
Primary and secondary markets.
Credit Ratings:
Assessing bond credit quality.
Types of Bonds:
Government, corporate, municipal bonds.

Try an Example Question:

Fixed Income Valuation

Valuing fixed income securities.

Discounted Cash Flow:
Present value of bond cash flows.
Duration and Convexity:
Measuring interest rate risk.
Term Structure of Interest Rates:
Yield curve analysis.
Yield Measures:
Current yield, YTM, spot rates.

Try an Example Question:

Portfolio Management Categories

Investment Policy and Allocation

Creating investment policies and allocating assets.

Asset Allocation:
Strategic vs tactical allocation.
Investment Policy Statement:
Components of IPS.
Portfolio Construction:
Building investment portfolios.
Rebalancing:
Maintaining desired asset mix.

Try an Example Question:

Performance Evaluation

Evaluating and attributing portfolio performance.

Benchmarking:
Comparing against benchmarks.
Performance Attribution:
Analyzing sources of returns.
Return Calculation:
Calculating portfolio returns.
Risk-Adjusted Performance:
Sharpe ratio, Treynor ratio.

Try an Example Question:

Portfolio Risk and Return

Understanding risk and return in portfolios.

Capital Asset Pricing Model:
CAPM and security market line.
Modern Portfolio Theory:
Diversification and efficient frontier.
Portfolio Diversification:
Reducing risk through diversification.
Risk Measures:
Standard deviation, beta, VaR.

Try an Example Question:

Quantitative Methods Categories

Hypothesis Testing

Statistical inference methods.

Null and Alternative Hypotheses:
Formulating hypotheses.
P-values and Significance:
Determining significance.
Test Statistics:
Interpreting z and t statistics.
Type I and II Errors:
Understanding testing errors.

Try an Example Question:

Probability Concepts

Probability theory fundamentals.

Basic Probability Principles:
Definitions and rules.
Bayes Theorem:
Updating probabilities with info.
Conditional Probability:
Probabilities with conditions.
Expected Value and Variance:
Calculating returns and risk.

Try an Example Question:

Statistical Concepts and Returns

Statistical concepts for investment analysis.

Correlation and Covariance:
Relationship between variables.
Measures of Central Tendency:
Mean, median, and mode.
Measures of Dispersion:
Range, variance, standard deviation.
Skewness and Kurtosis:
Data distribution shapes.

Try an Example Question:

Time Value of Money

Principles of time value of money.

Annuities and Perpetuities:
Valuing annuities and perpetuities.
Compounding Frequencies:
Impact of compounding periods.
Present and Future Value:
Calculating present and future values.
Uneven Cash Flows:
Valuing uneven cash flow streams.

Try an Example Question:

And more! Questions and categories are updated monthly to keep you ahead.