What is the CFA Program?

The CFA Program is a graduate-level, self study curriculum and examination program for investment professionals-especially security analysts, money managers and investment advisors. Established in 1962, the CFA Program set the global standard for investment knowledge, standards and ethics. When you sign up for the CFA Program, you become a candidate. The three-year program requires you to study for and pass three levels of exams. If you pass the exams and meet other requirements, you earn a CFA charter.

     • The Level 1 study program emphasizes tools and inputs, in addition to an introduction to asset valuation  

       and portfolio management techniques.

    • The Level 2 study program emphasizes asset valuation, as well as applications of the tools and inputs in

       asset valuation.

    • The Level 3 study program focuses on the portfolio management process and emphasizes the application

       and synthesis of the methodologies utilized in Levels 1 and 2  consulting, and/or risk technology.
 

    • Minimum length of time taken to sequentially pass all three exams: 1.5 years

    • Average number of years candidates take to earn CFA charter: 4 years

    • Recommended number of hours of study for each exam level: A minimum of 250 hours of study

About the CFA Level I Questions: The Level I exams will include 240 total multiple choice questions, 120 on the morning session of the exam and 120 on the afternoon session. Each multiple choice question is free-standing (not dependent on other questions) and has four possible answers: A, B, C, and D. All questions are equally weighted and there is no penalty for guessing.

Historical Pass Rate: The worldwide pass rates were 42%, 47%, and 68% for Levels I, II, and III, respectively.

How to Prepare for the Exam: CFA Exam is a very tough exam; a reasonable estimate to prepare for the exam would be 250 hours, i.e. 13 weeks (19 hours per week). Depending on an individual's academic background and work experience, preparation for the exam would take approximately 3 months. In reality, you need to spend nearly every weekend between September to December to prepare for the exam. Pristine have designed an Exam-focused Classroom Training Program starting in September to speed up your exam preparation by covering the major topics in the training for all the subjects, which can reduce your exam preparation time from 250 hrs to 150hrs.

Fees Structure CFA Level I: December 2008 CFA Exam
Payment Deadlines    Program enrolment     
  (new candidates only)  		+Exam registration* =Total cost
17 Mar 2008: $390 +$600 =$900
22 Aug 2008: $390 +$688 =$1078
17 Mar 2008: $465 +$930 =$1395

Returning Level I candidates pay only the exam registration fee.

Exams for all levels are held in locations around the world. Level I exams are held in June and December. Levels II and III are only held in June.

You can take as long as you need to complete the program, and there is no limit to the number of times you can take each exam. The curriculum changes each year to meet the dynamic nature and complexity of the global investment profession.

CFA Level 1 Exam Topical Outline: CBOK
  1. Ethical and Professional Standards

    1. Professional Standards of Practice
    2. Ethical Practices

  2. Quantitative Methods

    1. Time Value of Money
    2. Probability
    3. Probability Distributions and Descriptive Statistics
    4. Sampling and Estimation
    5. Hypothesis Testing
    6. Correlation Analysis and Regression
    7. Time Series Analysis
    8. Simulation Analysis
    9. Technical Analysis

  3. Economics

    1. Market Forces of Supply and Demand
    2. The Firm and Industry Organization
    3. Measuring National Income and Growth
    4. Business Cycles
    5. The Monetary System
    6. Inflation
    7. International Trade and Capital Flows
    8. Currency Exchange Rates
    9. Monetary and Fiscal Policy
    10. Economic Growth and Development
    11. Effects of Government Regulation
    12. Impact of Economic Factors on Investment Markets

  4. Financial Reporting and Analysis

    1. Financial Reporting System (IFRS and GAAP)
    2. Principal Financial Statements
    3. Financial Reporting Quality
    4. Analysis of Inventories
    5. Analysis of Long-Lived Assets
    6. Analysis of Taxes
    7. Analysis of Debt
    8. Analysis of Off-Balance-Sheet Assets and Liabilities
    9. Analysis of Pensions, Stock Compensation, and Other Employee Benefits
    10. Analysis of Inter-Corporate Investments
    11. Analysis of Business Combinations
    12. Analysis of Global Operations
    13. Ratio and Financial Analysis

  5. Corporate Finance

    1. Corporate Governance
    2. Dividend Policy
    3. Capital Investment Decisions
    4. Business and Financial Risk
    5. Long-Term Financial Policy
    6. Short-Term Financial Policy
    7. Mergers and Acquisitions and Corporate Restructuring

  6. Equity Investments

    1. Types of Equity Securities and their Characteristics
    2. Equity Markets: Characteristics, Institutions, and Benchmarks
    3. Fundamental Analysis (Sector, Industry, Company) and the Valuation of Individual Equity Securities
    4. Equity Market Valuation and Return Analysis
    5. Special Applications of Fundamental Analysis (Residual Earnings)
    6. Equity of Hybrid Investment Vehicles

  7. Fixed Income

    1. Types of Fixed-Income Securities and their Characteristics
    2. Fixed-Income Markets: Characteristics, Institutions, and Benchmarks
    3. Fixed-Income Valuation (Sector, Industry, Company) and Return Analysis
    4. Term Structure Determination and Yield Spreads
    5. Analysis of Interest Rate Risk
    6. Analysis of Credit Risk
    7. Valuing Bonds with Embedded Options
    8. Structured Products

  8. Derivatives

    1. Types of Derivative Instruments and their Characteristics
    2. Forward Markets and Instruments
    3. Futures Markets and Instruments
    4. Options Markets and Instruments
    5. Swaps Markets and Instruments
    6. Credit Derivatives Markets and Instruments

  9. Alternative Investments

    1. Types of Alternative Investments and their Characteristics
    2. Real Estate
    3. Private Equity/Venture Capital
    4. Hedge Funds
    5. Closely-held Companies and Inactively Traded Securities
    6. Distressed Securities/Bankruptcies
    7. Commodities
    8. Tangible Assets with Low Liquidity

  10. Portfolio Management and Wealth Planning

    1. Portfolio Concepts
    2. Management of Individual/Family Investor Portfolios
    3. Management of Institutional Investor Portfolios
    4. Pension Plans and Employee Benefit Funds
    5. Investment Manager Selection
    6. Other Institutional Investors
    7. Mutual Funds, Pooled Funds, and ETFs
    8. Economic Analysis and Setting Capital Market Expectations
    9. Tax Efficiency
    10. Asset Allocation (including Currency Overlay)
    11. Portfolio Construction and Revision
    12. Equity Portfolio Management Strategies
    13. Fixed-Income Portfolio Management Strategies
    14. Alternative Investments Management Strategies
    15. Risk Management
    16. Execution of Portfolio Decisions (Trading)
    17. Performance Evaluation
    18. Presentation of Performance Results