How Hard Is the CFA Level I Exam?

All the CFA exams are challenging and require focus and preparation. This article will reveal what to expect in CFA Level I and answer the most common question that candidates interested in CFA ask, “how hard is the CFA Level I exam?”

The CFA Level I exam covers four main functional areas. These are ethical and professional standards, investment tools, asset valuation, and portfolio management/wealth planning. There are 10 topics under the four functional areas that are tested in the Level I CFA exam, and they vary in exam weight, as shown below:

• Ethical and Professional Standards: 15-20%
• Economics: 8-12%
• Quantitative Methods: 8-12%
• Financial Reporting and Analysis: 13-17%
• Corporate Issuers: 8-12%
• Portfolio Management and Wealth Planning: 5-8%
• Fixed Income: 10-12%
• Equity Investments: 10-12%
• Derivatives: 5-8%
• Alternative Investments: 5-8%

These topics are well explained in the recommended CFA study materials.

The topics and weights for the Level I exam change regularly, so be sure to check out our resource on the details of the 2022 curriculum for the most up-to-date information.

The Level I exam is not easy and preparing for it requires commitment. You need to give yourself enough time to study and understand all the available CFA Level I materials. The best way to study is by strictly following the CFA Program curriculum.

In addition to the CFA Program curriculum, CFA candidates should explore other valuable resources, such as CFA Institute mock exams, CFA Level I study guides, and CFA Program approved prep providers that help in self-evaluation.

Custom study plans aid in exam preparation depending on your circumstances and needs. It’s also a good idea to engage in study groups since they help create better focus and promote more curriculum coverage, especially if it’s your first time taking this kind of exam.

CFA Level I exam fees are structured in three different ways:

• One-time enrollment fee: This is assessed during registration.
• Registration fee: This varies depending on the time of registration. Better rates are available for those who register early.
• Rescheduling fee: This covers costs for rescheduling a booked test center or changing the date within an examination window.

Retaking an exam requires an additional exam registration fee.

Pricing breakdown:

• One-time enrollment fee: $450
• Standard registration fee: $1,000
• Early registration fee: $700
• Rescheduling fee: $250

Click the link to learn more about CFA Program fees.

The CFA Level I exam is not taken for the acquisition of a license. Therefore, it is devoid of an expiration date. The program is well-recognized in the investment field, as it provides a strong foundation for individuals in the business world.

You should be able to access the results within 60 days after your exam date. The results do not expire, but your access to detailed information relating to the results does.

You do not need to enroll in the CFA Program each year, and the registration is not limited to a set period of time.

Among the frequently asked questions among individuals taking the CFA exam is, “how hard is the CFA Level I compared to Level II?” The following pointers provide a clear answer to this question.

At CFA Level I, the questions are brief and straightforward; however, The CFA Level II exam employs vignettes with 4 to 6 questions based on the vignette.

Vignettes are a combination of tables, statements, and texts explained in several paragraphs. A CFA Level II candidate should be able to scan through a vignette and pick out crucial data that will aid in answering each question.

The CFA Level I exam has 180 unrelated questions, while the CFA Level II exam has structured vignettes containing several questions that require candidates to dig deeper into specific topics.

Therefore, taking CFA Level II is more challenging because you need to read through vignettes keenly to avoid missing critical information.
When determining CFA Level I difficulty versus CFA Level II, remember that your undergraduate studies play a significant role in your CFA Level I. The concepts are often familiar and easy to understand, unlike in Level II, where previous studies in relevant topic areas may provide a slight advantage in your exams.

All three CFA exam levels have ranges for the percentage of exam questions that will come from each topic area. Our CFA study guide specifies the topic weight ranges expected for each level.

The CFA Level I exam is broad but covers basic concepts. On the other hand, CFA Level II has more complex material and covers in-depth explanations of sometimes unfamiliar theories that may prove more challenging to grasp.

The types of questions on each level exam advance along a hierarchical ordering of six cognitive skills that become progressively more advanced from knowledge and comprehension (Level I) to application and analysis (Level II) to synthesis and evaluation (Level III). The cognitive skills at each level overlap to some extent across levels.

The CFA Level III exam is the final exam offered in the CFA Program and is different in focus and style from either the Level I or Level II exam.CFA Level I revolves around memorizing basic concepts and formulas in topics, such as finance and investment. However, CFA Level III requires a conceptual understanding of topics, such as wealth planning and portfolio management and ethical and professional standards.

The CFA Level III exam has a few item-set questions, and most of the remaining questions are posed as essays. CFA Level I has brief questions requiring short and precise answers, thus making the exam much easier than questions on the Level III exam. Compared to the Level I exam, students have indicated more difficulty mastering the structure of the Level III exam.

Self-study for the CFA Level I exam is possible with hard work and motivation. However, you need to have all the critical resources to pass the exams. CFA Level I involves the study of basic concepts that are much easier to grasp than the content in the other CFA levels, but it requires that you dedicate a relevant amount of time to your studies.

All CFA exams are offered during specified periods annually. You need to register for the exam using the following steps:

• Visit the CFA website and enroll for the CFA Level I exam once registration opens. Always check the deadlines and exam days so you can complete your registration early.
• Choose a CFA testing center for your exam that suits you best. You also have the option of rescheduling the test center or the date before the set deadline at a fee of $250.

Remember that national or local COVID-19 pandemic regulations may require social distancing; hence, some centers reach capacity before the registration deadline. Therefore, it is imperative to register as soon as you can to avoid the challenge of missing out on a preferred testing center and test date.

Keeping track of the CFA exam schedule, exam dates, and deadlines for registration can be tricky. Learn more about the CFA exam dates and schedule today.

Registration Requirements

To enroll in the CFA Program and register for the Level I exam you need:

• A bachelor’s degree or an equivalent program/professional work experience (including internships and article-ships). If you are an undergraduate student, select an exam scheduled before graduation, but ensure you have your degree or equivalent program when registering for the CFA Level II exam.
• A valid international passport. You cannot register for the CFA Level I exam without an international travel passport.
• Adequate English skills. CFA Level I difficulty requires you to be proficient in English to partake in the CFA Program exams. Therefore, your reading, comprehension, and ability to answer questions correctly are tested using English exams.
• To meet the professional conduct admission criteria. All candidates who want to enroll in the CFA Program must complete a statement form to certify that they comply with all requirements.
• To live in a participating country. Residents cannot register for the CFA Level I exam if they are living in certain countries. It is vital to check if the CFA sanctions apply to your country.

For adequate preparation for CFA Level I exams, you need to have a study planner designed to cover a period of at least 6 to 9 months. A study planner has a detailed preparation schedule and helps you arrange study time around the topics tested in the exam.Studying topics following the order presented in the CFA Institute materials may be the best order, although the topics may certainly be studied in any order. After studying quantitative methods, you can then cover fixed income and equity investment topics and later on corporate issuers. Ultimately you can study ethics and professional standards.

The best way to pass the CFA exam is to study with trusted materials like UWorld’s CFA Review Courses taught by leading experts in the field, such as Peter Olinto. If you prefer, you can study with one of our popular CFA study supplements including Study Guides, Test Banks, and Mock Exams to help better understand complex concepts and get the edge you need to pass.

CFA Level I difficulty calls for thorough preparation. Remember that you cannot enroll in the CFA Level II exam until you have passed the Level I exam.

After studying hard for months and finally passing the CFA Level I exam, the next big question in your mind would be what job opportunity you can secure or which career path is at your disposal.Multiple roles may become available after successfully completing the CFA Level I exam, such as:

• Trust consultant
• Treasury analyst
• Investment manager
• Forensic accountant
• Junior trader
• Investment portfolio manager
• Certified public accountant (CPA)
• Equity trader
• Investment analyst
• Financial planner

Now that you understand more details about the CFA Level I exam, all that’s left is to start preparing to pass the exam.