Before going into the various aspects of how long is CFA exam Level 1, CFA exam hours, or how is the CFA Level 1 exam structured, a quick look at what the CFA Charter is will be in order.
A Chartered Financial Analyst is a credential awarded to those who have completed the CFA Program and have the requisite work experience.
The CFA exam is conducted over three parts and focuses on the valuing of assets, portfolio management, fundamentals of investment tools, and wealth planning. The CFA Charter is ideal for those with a background in accounting, economics, business, or finance.
After passing the exam, becoming a CFA Charter holder, and being accepted by the CFA Institute, candidates earn the right to use the CFA designation. CFAs typically work in investment management, risk management, asset management, and more in very lucrative senior and executive positions.
This post will focus on the various aspects of the CFA exam Level 1. Let’s dive in!
Contents
CFA Exam Hours
CFA Level 1 Exam Hours
So, just how long is the CFA level 1 exam? The CFA exam is one of the toughest in the accounting and finance field and candidates have to give themselves enough time to study.
The prevailing wisdom is that it takes a minimum of 300 hours of study time to successfully prepare for each level of the CFA exam, including level 1. Your mileage may vary, but making sure you carve out enough time to study will maximize your chances of success.
CFA Level 1 Exam Length
The entire CFA level 1 exam takes 4.5 hours to complete, and is split into two 135-minute sessions.
To properly prepare, you should incorporate practice sessions at or near this length so that you can practice managing your energy and focus for an extended period of time.
Some of the resources of the CFA Institute that will help you to maximize your CFA exam hours are as follows:
- Program curriculum
- Learning ecosystem (LES)
- Online mock exams
- Program-approved prep providers
- Program curriculum end-of-reading practice problems
- Study groups
- Practice Pack (additional purchase necessary, available May 2023)
CFA Level 1 Exam Content
The amount of time you spend studying – 300 hours at the bare minimum to be sure of crushing the Level 1 exam on the first attempt – will partly depend also on how well you balance your focus on the various topics that the exam covers.
There are 10 core topics covered by the CFA level 1 exam, each weighted as follows:
- Ethical and Professional Standards 15-20%
- Quantitative Methods 8-12%
- Economics 8-12%
- Financial Statement Analysis 13-17%
- Corporate Issuers 8-12%
- Portfolio Management 5-8%
- Equity Investments 10-12%
- Fixed Income 10-12%
- Derivatives 5-8%
- Alternative Investments 5-8%
While evaluating your CFA Level 1 exam hours, studies have shown that Level 1 candidates have generally already mastered some of the above topics and the concepts while pursuing their university studies or in their early career roles. If these topics are new to to, then plan to spend more than 300 hours prepping for the exam.
What is the CFA Level 1 Exam Structure?
The CFA Level 1 exam consists of two 135-minute sessions, each covering 90 multiple choice questions (180 total). Generally speaking, this provides about 90 seconds per question.
The multiple-choice questions are exclusive, meaning they’re not dependent on each other. There are three possible choices for each question that are crafted so intelligently that the incorrect choices reflect common mistakes in calculation or logic. When appearing for the CFA exam, answer all the questions even if you are not sure about the right answer as there is no negative marking in the exam.
Some of the questions will require you to see to use a calculator and hence you should know how to handle one. Given the overall CFA Level 1 exam length, there is an optional break between Sessions 1 and 2.
CFA Level 1 Exam Day Checklist
As compared to the previous paper-based exams, the new computer-based testing (CBT) is somewhat different given the scheduling windows and times.
The most critical part of your CFA Level 1 exam day checklist is to remember what your exam session will look like. Here it is:.
- Pledge, tutorial, and survey – 30 mins
- Session 1 exam – 135 mins
- Optional break – 30 mins
- Session 2 exam – 135 mins
- Total testing time – 4.5 hours
- Total appointment time – 5.5 hours
To be safe, plan to arrive at least 30 minutes before the start of Session 1, as the check-in process takes some time.
Next, keep your ID and the calculator ready in hand for the proctor to inspect. Your belongings will not be touched by the testing personnel.
If you decide to bring a bag into the exam center, there are specific items that are allowed only. These are water, a dose of caffeine like a can of Red Bull or equivalent, and a snack for the 30-minute break. Be smart, and bring something light that won’t give you digestion problems. Also, remember to keep your mobile phone switched off, NOT on silent mode.
Finally, there is no dress code and you can wear anything that keeps you comfortable throughout the day.
New CFA Exam Format
There aren’t many major Level 1 CFA 2023 curriculum changes, but here are the notable ones:
- The structure of the CFA Level 1 exam is now inclined toward the Learning Module (LM) structure instead of Readings. These small bite-sized lessons can be completed quickly within a few hours of study. LMs now contain more spreadsheets, visuals, and content that are designed for finance careers.
- 3 new Corporate Issuers and Economics readings have been added in 2023.
- The Portfolio Management topic has seen a minor change. The “Fintech in Investment Management” reading now includes fresh content on DeFi and blockchain.
- The Alternative Investments and Derivatives sections have transitioned to the LM structure this year; therefore, the ‘number of readings/chapters’ of 2023 vis-a-vis 2022 is no longer valid.
These are some of the pointers in the new CFA exam format for 2023.
The Bottom Line
Hopefully this gave you a great overview of the CFA level 1 exam. Make no mistake, this exam is a tough one to crack and many people fail because they either didn’t take it seriously enough or they weren’t equipped with the right study materials, or both.
To save yourself time and headaches down the line, be sure to research and invest in a CFA review course that will provide plenty of practice material, including multiple choice questions and mock exams. CFA prep courses are designed to stay current with the latest exam changes, and will properly balance the CFA exam curriculum. This will allow you to evaluate your strengths and weaknesses in different topics while also giving you a feel for what to expect on exam day.
