The Chartered Financial Analyst (CFA) program consists of three levels of exams, each of which builds upon the knowledge and skills learned in the previous level. Here’s an overview of the three exams:
CFA Level I Exam: The Level I exam is a multiple-choice exam that covers a broad range of topics, including ethics, quantitative methods, economics, financial reports and analyst, corporate finance, portfolio management, and equity, fixed income, and alternative investments. The exam consists of 240 multiple-choice questions and is offered in both paper and computer-based formats.
CFA Level II Exam: The Level II exam is a multiple-choice exam that focuses on the application of the knowledge and skills learned in Level I. The exam covers topics such as financial reporting and analysis, corporate finance, equity investments, fixed income investments, derivatives, and alternative investments. The exam consists of 120 multiple-choice questions and is offered in a paper-based format only.
CFA Level III Exam: The Level III exam is a combination of essay questions and item sets that focus on portfolio management and wealth planning. The exam covers topics such as asset allocation, risk management, ethical and professional standards, performance evaluation, and wealth planning. The exam consists of a morning session of essay questions and an afternoon session of item sets and is offered in a paper-based format only.
Candidates must pass each level of the CFA exam in sequential order and meet the eligibility requirements before registering for each level. The CFA exam is known for its difficulty, and candidates typically spend hundreds of hours studying and preparing for each exam.
