CFA® Level I: free lessons, practice and mock exam

Tools and concepts: build the foundation across all ten topics. 180 multiple-choice questions with three options each, in two sessions of 135 minutes (90 questions per session). No penalty for wrong answers.

Quantitative Methods 6–9%

Returns, time value of money, statistics, probability, simulation, inference, regression and financial data science.

• Returns of Financial Assets and Instruments
• Types of Financial Returns
• Benchmarking Returns
• The Time Value of Money in Finance
• Statistical Characteristics of Asset Returns
• Statistical Distributions for Financial Asset Prices and Returns
• Estimation and Hypothesis Testing
• The Return and Risk of a Financial Portfolio
• Simulation of Financial Asset Prices and Returns
• Applications of Simple Linear Regression in Finance
• Introduction to Financial Data Science

Economics 6–9%

Market structures, business cycles, fiscal and monetary policy, geopolitics, trade, capital flows and currencies.

• The Firm and Market Structures
• Understanding Business Cycles
• Fiscal Policy
• Monetary Policy
• Introduction to Geopolitics
• International Trade
• Capital Flows and the FX Market
• Exchange Rate Calculations

Corporate Finance 6–9%

Ownership structures, stakeholders, governance, working capital, capital investment, capital structure and business models.

• Organizational Forms, Corporate Issuer Features, and Ownership
• Investors and Other Stakeholders
• Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
• Working Capital and Liquidity
• Capital Investments and Capital Allocation
• Capital Structure
• Business Models

Financial Statement Analysis 11–14%

Income statements, balance sheets, cash flows, inventories, long-lived assets, taxes, reporting quality and analysis techniques.

• Introduction to Financial Statement Analysis
• Analyzing Income Statements
• Analyzing Balance Sheets
• Analyzing Statements of Cash Flows I
• Analyzing Statements of Cash Flows II
• Analysis of Inventories
• Analysis of Long-Term Assets
• Topics in Long-Term Liabilities and Equity
• Analysis of Income Taxes
• Financial Reporting Quality
• Financial Analysis Techniques
• Introduction to Financial Statement Modeling

Equities 11–14%

Equity instruments and markets, sources of return, research, forecasting, factor models and valuation.

• Equity Instrument Features
• Equity Jurisdictions, Classes, and the Voting Process
• Equity Issuance and Trading
• Sources of Equity Returns
• Introduction to Equity Valuation
• Discounted Cash Flow (DCF) and Growth Models
• Relative Value Equity Valuation Approaches
• Financial Statement Forecasting in Equity Valuation
• Industry and Competitive Analysis
• Company Analysis: Past, Present, and Future
• Equity Analyst Research Reports
• The Capital Asset Pricing Model, Market Model, and Other Factor-Based Equity Models

Fixed Income 11–14%

Bond features and markets, pricing and yields, the term structure, duration and convexity, credit, and securitization.

• Fixed-Income Instrument Features
• Fixed-Income Cash Flows and Types
• Fixed-Income Issuance and Trading
• Fixed-Income Markets for Corporate Issuers
• Fixed-Income Markets for Government Issuers
• Fixed-Income Bond Valuation: Prices and Yields
• Yield and Yield Spread Measures for Fixed-Rate Bonds
• Yield and Yield Spread Measures for Floating-Rate Instruments
• The Term Structure of Interest Rates: Spot, Par, and Forward Curves
• Interest Rate Risk and Return
• Yield-Based Bond Duration Measures and Properties
• Yield-Based Bond Convexity and Portfolio Properties
• Curve-Based and Empirical Fixed-Income Risk Measures
• Credit Risk
• Credit Analysis for Government Issuers
• Credit Analysis for Corporate Issuers
• Fixed-Income Securitization
• Asset-Backed Security (ABS) Instrument and Market Features
• Mortgage-Backed Security (MBS) Instrument and Market Features

Derivatives 5–8%

Forwards, futures, swaps and options: features, uses, arbitrage-free pricing, put-call parity and the binomial model.

• Derivative Instrument and Derivative Market Features
• Forward Commitment and Contingent Claim Features and Instruments
• Derivative Benefits, Risks, and Issuer and Investor Uses
• Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives
• Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities
• Pricing and Valuation of Futures Contracts
• Pricing and Valuation of Interest Rate and Other Swaps
• Pricing and Valuation of Options
• Option Replication Using Put-Call Parity
• Valuing a Derivative Using a One-Period Binomial Model

Alternative Investments 7–10%

Private capital, real estate, infrastructure, natural resources, hedge funds and digital assets.

• Alternative Investment Features, Methods, and Structures
• Alternative Investment Performance and Returns
• Investments in Private Capital: Equity and Debt
• Real Estate and Infrastructure
• Natural Resources
• Hedge Funds
• Introduction to Digital Assets

Portfolio Construction 8–12%

The portfolio management process, planning and construction, behavioral biases and risk management.

• Portfolio Risk and Return: Part I
• Portfolio Risk and Return: Part II
• Portfolio Management: An Overview
• Basics of Portfolio Planning and Construction
• The Behavioral Biases of Individuals
• Introduction to Risk Management

Ethical and Professional Standards 15–20%

The Code of Ethics, the seven Standards of Professional Conduct and how to apply them to real situations.

• Ethics and Trust in the Investment Profession
• Code of Ethics and Standards of Professional Conduct
• Guidance for Standard I: Professionalism
• Guidance for Standard II: Integrity of Capital Markets
• Guidance for Standard III: Duties to Clients
• Guidance for Standard IV: Duties to Employers
• Guidance for Standard V: Investment Analysis, Recommendations, and Actions
• Guidance for Standard VI: Conflicts of Interest
• Guidance for Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate
• Application of the Code and Standards: Level I