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FINRA · 2026 · Free

Free CFA Level 1 Practice Exam

CFA Level 1 practice exam with 180 questions across all 10 topics including ethics, quant, FSA, equity, fixed income, derivatives, and portfolio management.

180Questions
4h 30mTotal Time
~42%Pass Rate
4x/yrOffered
300 hrsRecommended Study

CFA Level 1 Exam

Chartered Financial Analyst -- Level 1. 180 MCQs (3 options each), 4h30m, ~42% pass rate. Tests foundational investment knowledge across 10 topic areas.

Practice by CFA Level 1 Topic

Target a specific area, or launch the full exam below

⚖️

Ethics & Professional Standards

CFA Institute Code of Ethics, Standards of Professional Conduct, and GIPS. 15-20% of exam -- largest topic.

20 questions
📊

Quantitative Methods

Time value of money, statistics, probability, regression, and performance measurement. 6-9% of exam.

20 questions
🌍

Economics

Micro and macroeconomics, monetary policy, fiscal policy, and international trade. 6-9% of exam.

17 questions
📋

Financial Statement Analysis

Income statement, balance sheet, cash flows, ratios, and financial reporting standards. 11-14% of exam.

20 questions
📝

Corporate Issuers

Capital structure, cost of capital, dividends, working capital management, and corporate governance. 6-9% of exam.

20 questions
📈

Equity Investments

Equity markets, valuation models, industry analysis, and equity research. 11-14% of exam.

15 questions
📝

Fixed Income

Bond markets, pricing, duration, yield curves, credit risk, and structured products. 11-14% of exam.

20 questions
📝

Derivatives

Options, futures, forwards, swaps, and put-call parity. 5-8% of exam.

11 questions
📝

Alternative Investments

Private equity, hedge funds, real assets, commodities, and infrastructure. 7-10% of exam.

11 questions
📝

Portfolio Management

Modern portfolio theory, CAPM, CML, SML, and portfolio construction. 8-12% of exam.

17 questions

About the CFA Level 1 Exam

The CFA Level 1 exam is the first of three levels required to earn the Chartered Financial Analyst designation from the CFA Institute — the most prestigious credential in investment management. Level 1 tests foundational investment knowledge across 10 topic areas and is offered four times per year (February, May, August, November). The CFA designation is held by over 190,000 professionals worldwide and is recognized as the benchmark qualification for portfolio managers, research analysts, and institutional investors.

The exam contains 180 multiple-choice questions (three answer choices each) split across two sessions of 90 questions with 2 hours 15 minutes per session. The overall pass rate has historically been around 37–44%, making it a challenging but achievable milestone for well-prepared candidates.

180Questions
4h 30mTotal Time
~42%Pass Rate
4x/yrOffered
300 hrsRecommended Study

CFA Level 1 Topic Weights

TopicWeightKey Areas
Ethical and Professional Standards15–20%Code of Ethics, Standards of Practice, GIPS
Quantitative Methods6–9%TVM, statistics, hypothesis testing, regression
Economics6–9%Micro/macroeconomics, currency exchange, business cycles
Financial Statement Analysis11–14%Income statement, balance sheet, cash flows, ratios
Corporate Issuers6–9%Capital structure, dividends, corporate governance
Equity Investments11–14%Equity markets, valuation models (DDM, P/E, EV)
Fixed Income11–14%Bond pricing, duration, convexity, yield measures
Derivatives5–8%Forwards, futures, options, swaps — pricing and valuation
Alternative Investments5–8%Real estate, private equity, hedge funds, commodities
Portfolio Management5–8%Modern portfolio theory, CAPM, IPS construction

Sample CFA Level 1 Questions

1. A bond has a modified duration of 6.5 and a convexity of 80. If yields increase by 50 basis points, the approximate percentage change in the bond's price is closest to:

  • A. −3.15%
  • B. −3.05%
  • C. −3.25%
Correct: B — −3.05%. Price change ≈ −(Modified Duration × Δy) + ½ × Convexity × (Δy)². = −(6.5 × 0.005) + ½ × 80 × (0.005)² = −0.0325 + 0.001 = −0.0305 = −3.05%. Convexity always adds back a positive value (bonds gain more in price when yields fall than they lose when yields rise), which is why the price decline is slightly less than the duration estimate alone.

2. An analyst uses the Gordon Growth Model to value a stock. The stock pays a dividend of $2.00, the required return is 10%, and dividends are expected to grow at 4% indefinitely. What is the intrinsic value?

  • A. $20.00
  • B. $28.57
  • C. $33.33
Correct: C — $33.33. The Gordon Growth Model (constant dividend discount model): V = D₁ ÷ (r − g). D₁ = D₀ × (1 + g) = $2.00 × 1.04 = $2.08. V = $2.08 ÷ (0.10 − 0.04) = $2.08 ÷ 0.06 = $34.67. Note: if D₁ is given directly as $2.00, then V = $2.00 ÷ 0.06 = $33.33. The exam will specify whether the $2 is D₀ or D₁ — read carefully.

3. According to the CFA Institute Code of Ethics, a member who has a material conflict of interest is required to:

  • A. Avoid taking any action that could benefit themselves
  • B. Disclose the conflict to clients and prospective clients
  • C. Recuse themselves from all investment decisions involving the conflict
Correct: B. Standard VI(A) — Disclosure of Conflicts requires members to disclose all matters that could impair their independence and objectivity. The standard does not require recusal or avoidance of the action — it requires full and fair disclosure so clients can make informed decisions. The disclosure must be prominent and in plain language, not buried in legal boilerplate.

Study Tips for CFA Level 1

The CFA Institute recommends 300+ hours of study, and successful candidates average around 320 hours. Start with Ethics — it carries 15–20% weight and the Institute has stated that borderline candidates are often passed or failed based on their Ethics score. Ethics questions also appear throughout the exam embedded in other topic scenarios.

Financial Statement Analysis and Fixed Income together make up roughly 25–28% of the exam and are the most detail-intensive. Master the three financial statements and how they interrelate. For Fixed Income, the inverse price-yield relationship, duration, and convexity calculations appear on almost every exam.

For a structured prep plan, see our CFA Level 1 study guide.

After passing Level 1, continue to CFA Level 2 and CFA Level 3. Comparing credentials? See the CAIA Level 1 and FRM Part 1 practice exams.

Frequently Asked Questions — CFA Level 1

What is the CFA Level 1 pass rate?

The CFA Level 1 pass rate has ranged from 37% to 44% in recent exam windows. The pass rate dropped significantly during exam format changes and the COVID period but has stabilized. With consistent, structured preparation over 4–6 months, most dedicated candidates can achieve a passing score.

How is the CFA Level 1 exam scored?

CFA Institute does not publish a specific passing score or percentage. Performance is reported relative to a minimum passing score (MPS) set by the Board of Governors after each exam using the modified Angoff method. Candidates receive topic-level performance bands (Below 50%, 50–70%, Above 70%) but not a numeric score. Ethics performance influences the final pass/fail decision for borderline candidates.

What are the eligibility requirements for the CFA exam?

To register for the CFA Level 1 exam, you need a bachelor's degree (or be in the final year of a bachelor's program) or have 4,000 hours of relevant work experience. You must also hold a valid international passport, be able to take the exam in English, and meet the professional conduct requirements of the CFA Institute.

How long does it take to get the CFA charter?

Passing all three levels typically takes a minimum of 2.5 years if you pass each level on the first attempt, since you must wait for results before registering for the next level and there are limited exam windows per year. Most candidates take 4–5 years to complete all three levels, accounting for retakes and scheduling.

What is the difference between CFA Level 1 and the CFP exam?

The CFA focuses on investment management and securities analysis for institutional and high-net-worth clients. The CFP (Certified Financial Planner) is oriented toward personal financial planning for individual clients — retirement, tax, estate, insurance, and budgeting. CFA charterholders typically work in portfolio management and research; CFP practitioners typically work as fee-based financial planners. Both are highly respected but serve different career paths.

Can I take CFA Level 1 without a finance background?

Yes. Many successful CFA candidates come from non-finance backgrounds including engineering, medicine, law, and the sciences. The curriculum is self-contained, meaning the official CFA Institute materials teach you everything you need to know. A non-finance background typically means a longer study timeline — budget 350+ hours and start with Quantitative Methods and Financial Statement Analysis to build your foundation.

How often can I take the CFA Level 1 exam?

CFA Level 1 is offered in February, May, August, and November — four times per year. There is no limit on the number of attempts, but each attempt requires a new registration fee ($700–$1,000 depending on how early you register). Most candidates who don't pass on the first attempt retake within 6 months.

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