CFA Level I Exam: Format, Topics and How to Prepare

How to prepare CFA Level I Exam

1. Check the exam date and registration window. Exams are held four times a year, usually in February, May, August and November. A candidate may sit at most twice per calendar year, and not in consecutive windows or within six months of each other. Pick a date, then count back the weeks you have.
2. Build a weekly schedule you can keep. Set fixed slots on weekdays and a longer block on the weekend. Short phone sessions work well for flashcards and formula review, while calculations need a desk and your calculator.
3. Study topics in an order that builds knowledge. Start with Quantitative Methods and Economics, then Financial Statement Analysis and Corporate Finance, then Equities and Fixed Income, then Derivatives, Alternatives and Portfolio Construction. Study Ethics in small pieces across the whole plan, because it is large and wording matters.
4. Learn each module in three passes: read for the idea, work the examples yourself, then answer practice questions on that module the same week. If you cannot explain why the two wrong options are wrong, you have not finished the module.
5. Master your calculator early. Practise time value of money, cash flow functions, statistics and bond calculations on the TI BA II Plus or HP 12C until the keystrokes are automatic. Use only the approved model in the exam.
6. Treat Ethics as exact wording. Learn each Standard by name and number, such as II(A), and practise applying it to short cases. Many wrong options are tempting because they sound reasonable but do not match the Standard.
7. Review on a loop. Keep an error log with the topic, the reason you missed the question, and the fix. Revisit it every week, and redo old questions after a gap to test real retention.
8. In the last four to six weeks, shift to mixed practice and full mock exams of 180 questions under timed conditions in two sittings. Spend the final days on weak areas, formulas and Ethics, and rest well before the exam.

Time management in the exam

• →You have about 90 seconds per question on average. Ninety questions in 135 minutes works out to exactly 90 seconds per question, so there is no built-in buffer. Time saved on easy items is what creates review time. Check your pace at set points, such as every 30 questions.
• →Read the last line of the stem first so you know what is being asked, then read the details. This stops you doing a long calculation for the wrong quantity.
• →If a question is taking more than about two minutes, make your best guess, flag it, and move on. Since there is no penalty for wrong answers, always select an option before you leave.
• →Do quick elimination first. Numerical options are in order from smallest to largest, so a rough estimate often removes one or two choices without full calculation.
• →Do not carry time between sessions. Each session has its own 135 minutes of 90 questions, so use the full time in each one, and use leftover minutes to revisit flagged items.
• →Practise timing in mocks, not only in the exam. Run full sessions of 90 questions in 135 minutes so that pacing and calculator speed feel normal on exam day.