CFA Level 1 Exam Time

Can you tell me about the Structure and Timing of CFA Program Level I Exam? Also tell me about the Exam Question Format of CFA Program Level I Exam?

[Shaleen]

The CFA Program shows employers and clients that one has mastered a broad range of practical portfolio management and advanced investment analysis skills. The curriculum covers concepts and skills you will use at all stages of your career.

Exam Structure and Timing

Structure
The Level I exam consists of 240 multiple choice questions, split among two 3-hour sessions. One needs to 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

Timing:
On average one should let approximately 90 seconds for each multiple choice question.
One may require more or less time, depending on the question and how well one understands the topic.

Exam Question Format

Multiple Choice Questions

Each item on the Level I multiple choice exams consist of a question, a statement, and/or table and three answer choices: A, B, and C.

Two basic formats are used:
1. Sentence completion with three unique choices
2. Questions with three unique choices
3.
Example 1 (Sentence completion)
An analyst suspects that a particular company’s U.S. GAAP financial statements may require adjustment because the company uses take-or-pay contracts.

The most likely effect of the appropriate adjustments would be to increase that company’s

A. return on assets.
B. debt-to-equity ratio.
C. interest coverage ratio.

Example 2 (Question)
An analyst suspects that a particular company’s U.S. GAAP financial statements may require adjustment because the company uses take-or-pay contracts.

Which of the following is most likely to increase as a result of the appropriate adjustments being made to that company’s financial statements?

A. Return on assets.
B. Debt-to-equity ratio.
C. Interest coverage ratio.
All questions are equally weighted and there is no penalty for an incorrect answer.