The Chartered Financial Analyst program is a globally-recognized graduate-level certification, held by over 150,000 professionals globally. The program helps to specialize in a broad range of investment specialties and helps set up a strong foundation for real-world investment analysis and practical knowledge which can be applied to today’s markets effectively. It also emphasizes the highest ethical and professional standards that are required to be followed. The CFA Program is a self-study, graduate-level program divided into three levels of exams. One has to give a series of sequential CFA Exam Levels – Level I, II, and III.
The 3 CFA Exam Levels differ in terms of difficulty, syllabus as well as exam format. While the Level 1 exam can be taken twice a year in the months of June and December, the subsequent CFA Exam Level 2 and 3 exams can only be taken once a year in the month of December. Below you can find all the information for all the CFA Exam Levels.
CFA Level 1 Examination
The CFA Institute offers three exams, this is the first of the three. Prerequisites for this exam include a Bachelor’s degree or am equivalent. An exemption can be made where you can write the level 1 if you
- are in the final year of your undergraduate program,
- have four years of professional experience OR
- have a combination of both, equating to at least four years.
Exam Structure
The Level I exam consists of 240 multiple choice questions, split between two 3-hour sessions. Candidates must attend both sessions.
- Morning session (3 hours): 120 multiple choice questions, covering all topics
- Afternoon session (3 hours): 120 multiple choice questions, covering all topics
Focus Areas
In CFA Level I, candidates are asked basic knowledge and comprehension questions, and must perform some analysis. Tools and concepts that apply to investment valuation and portfolio management
- Basic concepts regarding securities and markets
- CFA Institute Code of Ethics and Standards of Professional Conduct
Exam Wise Topic Weights
CFA Exam Level 2
Level II deals mainly with asset valuation. You must be able to apply the tools and concepts emphasized in Level I to analyze and value investments, and should also have a thorough understanding of capital market theory and industry and company analysis.
Exam Structure
The Level II exam has a total of 20 item set questions:
- Morning session: 10 item set questions
- Afternoon session: 10 item set questions
On the Level II exam, you will have a total of 120 questions compared to 240 multiple-choice items on the Level I exam.
The Level II exam is worth 360 points, corresponding to the number of minutes on the exam. The 120 Level II items are equally weighted, 3 points each, with no penalty for incorrect answers. In the Level II exams, some topics are covered in the morning session only and other topics are covered in the afternoon session only.
Each item set on the CFA exam consists of a case statement and six multiple choices (questions). Each multiple-choice question has three possible choices: A, B, and C. All questions are equally weighted and there is no penalty for wrong answers.
Focus Areas
Instead of focusing on Investment tools as in level 1 exam, the focus of CFA Level II curriculum is on asset valuation. The learning focus also changes, from knowledge and comprehension (Level I), to application and analysis (Level II).
CFA Level II Examination focuses on:
- Asset valuation
- Application of tools and techniques of investment valuation
- Industry and company analysis
- CFA Institute Code of Ethics and Standards of Professional Conduct
Exam Wise Topic Weights
CFA Exam Level 3
To become a CFA chart holder an individual must pass this exam (in addition to other requirements). Level III explores portfolio management in great depth. You must demonstrate a working knowledge of the portfolio management process, from calculating investor constraints, objectives, and capital-market expectations to making asset-allocation decisions.
Exam Structure
The Level III exam consists of an item set and constructed response (essay) questions:
- Morning session: Constructed response (essay) questions (usually between 8 and 12 questions, each with several subparts) with a maximum of 180 points.
- Afternoon session: 10 item set questions
The Level III exam uses the essay format in the morning, and the item set format, with 10 item sets, in the afternoon similar to the CFA Level II exam. Each item set on the CFA exam consists of a case statement) and six multiple-choice items (questions). Each multiple-choice question has three possible choices: A, B, and C. All questions are equally weighted and there is no penalty for wrong answers.
Focus Areas
Level III Examination focuses on:
- Management of institutional and individual portfolios
- Management of specific asset class portfolios
- Risk Management using derivatives
- CFA Institute Code of Ethics and Standards of Professional Conduct
Exam Wise Topic Weights
