The CFA Level 1 curriculum stretches over 3,000 pages, covering 6 books with 10 topics and 93 modules. This guide distills each topic into summaries so you can focus on the big picture without feeling overwhelmed.
CFA Level 1 Topic Structure
CFA Institute (CFAI) has designed the Level 1 curriculum to give you a strong foundation in investment valuation and portfolio management. Each topic builds a base of knowledge that professional investors rely on to manage large sums of money for their clients.
The chart below provides a high-level overview of each topic, including:
- Sessions: Exam day is split between two 2-hour, 15-minute sessions, each with 90 multiple-choice questions.
- Topic Weight: Each topic has a weight, expressed as a percentage, that reflects its importance in the industry and on the exam.
- Learning Modules: Topics are broken down into modules, each covering a key concept that can be studied in a single reading.
| CFA Level 1 Topics Overview | ||||
|---|---|---|---|---|
| Topics | Weight | Modules | Questions | Session |
| Ethical and Professional Standards | 15-20% | 5 | 27-36 | 1 |
| Quantitative Methods | 6-9% | 11 | 11-16 | 1 |
| Economics | 6-9% | 8 | 11-16 | 1 |
| Financial Statement Analysis | 11-14% | 12 | 20-25 | 1 |
| Corporate Issuers | 6-9% | 7 | 11-16 | 1 |
| Equity Investments | 11-14% | 8 | 20-25 | 2 |
| Fixed Income | 11-14% | 19 | 20-25 | 2 |
| Derivatives | 5-8% | 10 | 9-14 | 2 |
| Alternative Investments | 7-10% | 7 | 13-18 | 2 |
| Portfolio Management | 8-12% | 6 | 15-21 | 2 |
CFA Level 1 Exam Topic Breakdown
Below, we break down each CFA Level 1 topic, including key details, tips, and a difficulty rating based on complexity, content volume, and candidate feedback.
The 2025 CFA Level 1 curriculum remains largely the same as 2024, with all 93 learning modules unchanged and only minor updates in 3 Ethics chapters. Visit our CFA Exam curriculum updates page for details.
Ethical and Professional Standards (ET)
| Topic Weight | Modules | Formulas | Questions | Difficulty |
|---|---|---|---|---|
| 15-20% | 5 | 0 | 27-36 | Moderate |
Summary: Ethics introduces the CFA 6 Codes of Ethics and 7 Standards of Professional Conduct. These guidelines emphasize building client trust and lay the foundation for ethical decision-making in investment.
Objective: Prioritize client interest by applying the CFAI Code of Ethics and Standards of Professional Conduct to investment decisions.
Tip: Ethics questions often involve interpreting real-world scenarios. Pay special attention to the nuances around conflicts of interest and fiduciary duty.
Modules:
- Ethics and Trust in the Investment Profession
- Code of Ethics and Standards of Professional Conduct
- Guidance for Standards I-VII
- Introduction to the Global Investment Performance Standards (GIPS)
- Ethics Application
Quantitative Methods (QM)
| Topic Weight | Modules | Formulas | Questions | Difficulty |
|---|---|---|---|---|
| 6-9% | 11 | ≈50 | 11-16 | High |
Summary: Quantitative Methods builds foundational skills in statistics, probability, risk, and hypothesis testing, which are key to navigating the broader Level 1 curriculum and mastering advanced concepts in Levels 2 and 3.
Objective: Use statistical techniques to predict outcomes, measure performance, test hypotheses, and allocate resources effectively.
Tip: Start this section early to build core skills that pay dividends throughout the CFA program. Focus on grasping core concepts and relationships over rote memorization.
Modules:
- Rates and Returns
- The Time Value of Money in Finance
- Statistical Measures of Asset Return
- Probability Trees and Conditional Expectations
- Portfolio Mathematics
- Simulation Methods
- Estimation and Inference
- Hypothesis Testing
- Parametric and Non-Parametric Tests of Independence
- Simple Linear Regression
- Introduction to Big Data Techniques
Economics (EC)
| Topic Weight | Modules | Formulas | Questions | Difficulty |
|---|---|---|---|---|
| 6-9% | 8 | ≈40 | 11-16 | Moderate |
Summary: Economics covers core concepts of supply and demand, market structures, macroeconomic principles, aggregate demand, economic growth, and the business cycle’s impact on economic activity.
Objective: Use economic principles to analyze how macro- and microeconomic factors impact financial markets, government policies, and investment decisions.
Tip: Use real-world examples to make complex concepts relatable, and review key concepts like exchange rates, which appear frequently across the curriculum.
Modules:
- The Firm and Market Structures
- Understanding Business Cycles
- Fiscal Policy
- Monetary Policy
- Introduction to Geopolitics
- International Trade
- Capital Flows and the FX Market
- Exchange Rate Calculations
Financial Statement Analysis (FSA)
| Topic Weight | Modules | Formulas | Questions | Difficulty |
|---|---|---|---|---|
| 11-14% | 12 | ≈50 | 20-25 | Very High |
Summary: Financial Statement Analysis covers financial reporting procedures, disclosure standards, and core financial statements. You'll learn how various accounting methods impact these statements and develop a framework for analyzing financial data.
Objective: Interpret balance sheets, income and cash flow statements, and analyze financial data with accuracy and insights.
Tip: Focus on practice questions that highlight the key differences between IFRS and GAAP. Build a 3-statement model to deepen your understanding of how FSA concepts connect
Modules:
- Introduction to Financial Statement Analysis
- Understanding Income Statements
- Understanding Balance Sheets
- Analyzing Statements of Cash Flow I
- Analyzing Statements of Cash Flow II
- Analysis of Inventories
- Analysis of Long-Term Assets
- Topics in Long-Term Liabilities and Equity
- Analysis of Income Taxes
- Financial Reporting Quality
- Financial Analysis Techniques
- Introduction to Financial Statement Modeling
Corporate Issuers (CI)
| Topic Weight | Modules | Formulas | Questions | Difficulty |
|---|---|---|---|---|
| 6-9% | 7 | ≈30 | 11-16 | Moderate |
Summary: Corporate Issuers introduces corporate governance, stakeholder management, and the impact of environmental and social factors in investing. You'll explore governance frameworks and how companies manage working capital for short-term needs.
Objective: Learn how stakeholder management and financial decisions shape corporate value, with emphasis on capital structure and working capital management
Tip: Get comfortable with the principles behind NPV and capital structure — don’t just memorize formulas. Practice with your calculator for speed and accuracy.
Modules:
- Organizational Forms, Corporate Issuer Features, and Ownership
- Investors and Other Stakeholders
- Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Working Capital and Liquidity
- Capital Investments and Capital Allocation
- Capital Structure
- Business Models
Equity Investments (EV)
| Topic Weight | Modules | Formulas | Questions | Difficulty |
|---|---|---|---|---|
| 11-14% | 8 | ≈40 | 20-25 | High |
Summary: Equity Investments focuses on understanding equity securities, market structures, indices, and industry and company analysis. You’ll explore valuation models and examine global equities as a way to achieve growth and diversification objectives.
Objective: Analyze equity securities, industries, and companies by applying valuation models to gain insight into market structure and efficiency.
Tip: Work on qualitative and quantitative questions, focusing on valuation formulas such as the Gordon growth model. Practice your calculator’s cash flow functions.
Modules:
- Market Organization and Structure
- Security Market Indexes
- Market Efficiency
- Overview of Equity Securities
- Company Analysis: Past and Present
- Industry and Competitive Analysis
- Company Analysis: Forecasting
- Equity Valuation: Concepts and Basic Tools
Fixed Income (FI)
| Topic Weight | Modules | Formulas | Questions | Difficulty |
|---|---|---|---|---|
| 11-14% | 19 | ≈40 | 20-25 | High |
Summary: Fixed Income covers fixed-income securities and markets, yield measures, risk factors, valuation drivers, and credit analysis basics. You’ll learn to calculate yields and values, understand bond returns and risks, and explore asset securitization fundamentals.
Objective: Develop a solid grasp of debt securities, pricing, and yield factors to analyze bonds, assess risks, and apply credit analysis effectively.
Tip: Compared to equities, fixed income can feel abstract, so understanding Time Value of Money and Discounted Cash Flow is helpful.
Modules:
- Bond Features
- Types of Fixed-Income Instruments
- Fixed-Income Issuance and Trading
- Bond Markets for Corporate Issuers
- Bond Markets for Government Issuers
- Bond Valuation
- Fixed-Rate Bonds: Yields and Yield Spreads
- Floating-Rate Instruments: Yields and Yield Spreads
- Term Structure of Interest Rates
- Risk Associated with Bonds - Introduction
- Yield-Based Bond Duration
- Yield-Based Bond Convexity
- Curve-Based and Empirical Fixed-Income Risk Measures
- Credit Risk
- Credit Analysis: Government Issuers
- Credit Analysis: Corporate Issuers
- Securitization
- Asset-Backed Securities
- Mortgage-Backed Securities
Derivatives (DI)
| Topic Weight | Modules | Formulas | Questions | Difficulty |
|---|---|---|---|---|
| 5-8% | 10 | ≈30 | 9-14 | High |
Summary: Derivates covers the fundamentals of derivatives and their markets, covering key instruments like forwards, futures, swaps, and options. You'll learn valuation concepts and the role of arbitrage, which connects derivative pricing to the underlying asset’s value.
Objective: Analyze and value common derivative contracts and understand the role of arbitrage in pricing.
Tip: Prioritize understanding each derivative and its applications. Key terms such as arbitrage, put-call parity, and margin calls are required for understanding derivatives.
Modules:
- Derivative Instruments and Derivative Market Features
- Forward Commitment and Contingent Claim Features and Instruments
- Derivative Benefits, Risks, and Issuer and Investor Uses
- Arbitrage, Replication, and The Cost of Carry in Pricing Derivatives
- Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities
- Pricing and Valuation of Futures Contracts
- Pricing and Valuation of Interest Rates and Other Swaps
- Pricing and Valuation of Options
- Option Replication Using Put–Call Parity
- Valuing a Derivative Using a One-Period Binomial Model
Alternative Investments (AI)
| Topic Weight | Modules | Formulas | Questions | Difficulty |
|---|---|---|---|---|
| 7-10% | 7 | ≈10 | 13-18 | Moderate |
Summary: Alternative Investments covers hedge funds, private equity, real estate, commodities, and infrastructure, with a focus on their shared characteristics, their role in improving diversification and returns, and how they differ from traditional assets.
Objective: Evaluate alternative investments, understand their roles in portfolios, and distinguish asset classes like direct vs. indirect real estate and hedge fund strategies.
Tip: Focus on key differences such as hurdle rate, high watermark, REITs, and exit strategies. Review basic hedge fund fee structures for exam questions.
Modules:
- Alternative Investment Features, Methods, and Structures
- Alternative Investment Performance and Returns
- Investments in Private Capital: Equity and Debt
- Real Estate and Infrastructure
- Natural Resources
- Hedge Funds
- Introduction to Digital Assets
Portfolio Management (PM)
| Topic Weight | Modules | Formulas | Questions | Difficulty |
|---|---|---|---|---|
| 8-12% | 6 | ≈30 | 15-21 | Moderate |
Summary: Portfolio Management covers the basics of portfolio and risk management, including measuring return and risk, planning, and building portfolios. You'll explore investment needs for individuals and institutions and use the capital asset pricing model to optimize portfolio risk.
Objective: Structure and manage portfolios, assess risks, and adapt strategies for diverse investors, and develop key skills for a career in portfolio management.
Tip: Build a solid foundation in concepts like CAPM and risk-return calculations. Practice with core risk metrics and refer to UWorld SimpleSheets+ for quick reviews of key formulas.
Modules:
- Portfolio Management: An Overview
- Portfolio Risk and Return: Part I
- Portfolio Risk and Return: Part Ii
- Basics of Portfolio Planning and Construction
- The Behavioral Biases of Individuals
- Introduction to Risk Management
- Technical Analysis
- Fintech in Investment Management
What Are the Most Difficult CFA Level 1 Topics?
Candidates often list Financial Statement Analysis, Fixed Income, and Derivatives as the hardest CFA Level 1 topics due to their complex calculations, detailed concepts, and the challenge of applying theory to real-world scenarios. They are especially tough for those less familiar with financial analysis and advanced math.
- Financial Statement Analysis: Requires knowledge of accounting standards, IFRS vs. GAAP differences, financial ratios, and strong analytical skills.
- Fixed Income: Demands high-level math skills for bond valuation, yield spreads, and interest rate risk, along with model application.
- Derivatives: Requires understanding of complex instruments such as forwards, options, and swaps, with a focus on detailed pricing and risk analysis.
Some candidates find Economics or Quantitative Methods harder than Derivatives. Ultimately, your educational background will determine which topics you find challenging.
What Order Should I Study CFA Level 1 Topics In?
Your background may affect which topics you want to tackle first, but we recommend this study order because it builds skills progressively.
For example, starting with Quantitative Methods and Financial Statement Analysis provides essential math and data skills that support topics such as Fixed Income, Equity, and Derivatives, making it easier to spot connections and apply concepts throughout the curriculum.
- Quantitative Methods
- Financial Statement Analysis (FSA)
- Corporate Issuers
- Fixed Income
- Equity Investments
- Portfolio Management
- Economics
- Derivatives
- Alternative Investments
- Ethics
Leaving Ethics for last keeps it fresh in your mind for the exam and lets you approach it with a broader understanding of real-world finance. This order also balances harder and lighter topics so you can stay on track without burning out.
