FREE Comprehensive Notes and Summary for All 10 Topics of the CFA Level I Exam

CFA Level 1 Notes and Summary: A Guide to Mastering the 10 Key Topics

Welcome, ambitious CFA candidates! You’ve taken the first step towards becoming a CFA charterholder, and we’re here to guide you through the CFA Level 1 exam. Our detailed CFA Level 1 notes and summary will help you understand and dominate each topic.

Before we jump in, watch this video that offers our guidance on the optimal sequence of study and exam strategy:

Pass the CFA Level 1 Exam: Study Plan and Exam Strategy

1. Quantitative Methods (8-12% of the exam)

Our journey starts with Quantitative Methods. This topic revolves around statistical techniques and time-value-of-money (TVM) concepts. You’ll learn about probability, hypothesis testing, regression analysis, and discounted cash flow (DCF) valuation. Our suggestion? Focus on understanding the concepts and their applications, rather than just memorizing formulas.

Become a quant-whiz here.

2. Economics (8-12% of the exam)

Next up is Economics, where we’ll navigate the ups and downs of supply, demand, and everything in between! You’ll study microeconomics, macroeconomics, and global economic analysis. Be sure to understand key graphs, like the supply-demand curve, and familiarize yourself with crucial economic indicators.

Unravel the wealth of knowledge here!

3. Financial Statement Analysis (13-17% of the exam)

Financial Statement Analysis is where you’ll hone your skills in dissecting financial statements. You’ll examine income statements, balance sheets, and cash flow statements, and learn about financial ratios, profitability analysis, and quality of earnings. Focus on understanding the relationships between the different financial statements and knowing how to interpret the data.

Transform yourself into a financial statement guru here.

4. Fixed Income (10-12% of the exam)

Fixed Income is all about bonds and interest rates. You’ll explore the characteristics of fixed-income securities, risks, valuation, and yield measures. Our hot tip: get comfortable with bond math and duration concepts, as these tend to be frequently tested areas.

Navigate the world of bonds and fixed income mastery here.

5. Derivatives (5-8% of the exam)

Derivatives might sound intimidating, but fear not; we’re here to help! In this topic, you’ll learn about options, futures, forwards, and swaps. Make sure you understand the basics of each type of derivative and their uses in risk management and speculation.

Delve into the intricate web of financial derivatives here.

6. Alternative Investments (5-8% of the exam)

Enter the world of Alternative Investments, where you’ll delve into real estate, private equity, commodities, and hedge funds. While this section may be relatively smaller in weight, don’t underestimate its importance. Focus on understanding the key characteristics and risks associated with each type of alternative investment.

Venture beyond traditional assets like a pro here.

7. Equity Investments (10-12% of the exam)

Equity Investments is where you’ll dive into the captivating realm of stocks. You’ll study market organization, security types, valuation methods, and risk and return analysis. Concentrate on understanding the differences between various valuation models and how they’re applied in real-world situations.

Unleash your inner stock market strategist here.

8. Corporate Issuers (8-12% of the exam)

Corporate Issuers covers the inner workings of corporations, including capital structure, dividend policy, and corporate governance. Be sure to understand the trade-offs between debt and equity financing, as well as how different corporate policies can impact shareholder value.

Transform into a corporate finance whiz here.

9. Portfolio Management (5-8% of the exam)

Portfolio Management is all about creating and maintaining a well-balanced investment portfolio. You’ll learn about portfolio theory, asset allocation, risk management, and performance measurement. Focus on understanding the basics of Modern Portfolio Theory (MPT) and the efficient frontier, as these are crucial concepts for your CFA journey.

Master the art of constructing winning portfolios here.

10. Ethics (15-20% of the exam)

Last but definitely not least, we have Ethics – the backbone of the CFA program. This topic covers the CFA Institute’s Code of Ethics and Standards of Professional Conduct. Don’t underestimate the importance of Ethics, as it carries significant weight in the exam. Make sure to familiarize yourself with each standard and practice applying them to real-world scenarios.

Elevate your moral compass and navigate with integrity here.

Final Thoughts: Tackling the CFA Level 1 Exam

And there you have it – a comprehensive overview of the 10 topics covered in the CFA Level 1 exam! With our expertly crafted CFA Level 1 notes and summary, you’ll be well on your way to acing the exam. Remember to stay focused, practice plenty of questions, and don’t forget to enjoy the learning process. After all, finance can be fun, right? Good luck, and may the CFA gods be with you!