CFA Level I

This module develops the statistical and mathematical foundations essential for investment analysis. Candidates learn interest rates, return measures, and time value of money, followed by probability, sampling, estimation, and hypothesis testing. Portfolio mathematics builds understanding of covariances and correlations, while simulation techniques introduce Monte Carlo and bootstrap methods. Regression analysis strengthens forecasting skills, and Big Data concepts prepare candidates for modern analytical environments. Together, these units build fluency in quantitative reasoning that supports valuation, risk modeling, and empirical analysis across the CFA curriculum.

1. 1. Rates and Returns
2. 2. Time Value of Money
3. 3. Statistical Measures of Asset Returns
4. 4. Probability Trees and Conditional Expectations
5. 5. Portfolio Mathematics
6. 6. Simulation Methods
7. 7. Estimation and Inference
8. 8. Hypothesis Testing
9. 9. Parametric and Non-Parametric Tests of Independence
10. 10. Simple Linear Regression
11. 11. Introduction to Big Data Techniques

This module builds understanding of microeconomics, macroeconomics, geopolitics, and international trade—core inputs to investment analysis. Candidates explore firm behavior, market structures, the business cycle, fiscal and monetary policy, and geopolitical dynamics shaping global markets. The module also examines exchange rates, capital flows, and trade restrictions, enabling candidates to assess macroeconomic conditions, policy environments, and cross-border investment implications. This knowledge strengthens forecasting, valuation, and risk assessment across asset classes and enhances the ability to interpret global economic signals.

1. 1. Firms and Market Structure
2. 2. Understanding Business Cycles
3. 3. Fiscal Policy
4. 4. Monetary Policy
5. 5. Introduction to Geopolitics
6. 6. International Trade
7. 7. Capital Flows and the FX Market
8. 8. Exchange Rate Calculations

This module presents the foundational principles of portfolio construction, risk management, and investor profiling. Candidates examine risk and return relationships, diversification, optimal portfolio selection, risk-free assets, the Capital Asset Pricing Model, performance evaluation metrics, and the structure of the asset-management industry. The module builds toward understanding investor objectives, constraints, and the role of investment policy statements. Behavioral biases and risk-governance frameworks are introduced to help candidates integrate human factors, organizational structure, and practical limitations into real-world decision-making processes.

1. 1. Portfolio Risk and Return: Part I
2. 2. Portfolio Risk and Return: Part II
3. 3. Portfolio Management: An Overview
4. 4. Basics of Portfolio Planning and Construction
5. 5. The Behavioral Biases of Individuals
6. 6. Introduction to Risk Management

This module examines corporate structure, financing decisions, working-capital management, capital allocation, capital structure, and business models. Candidates evaluate stakeholder interests, corporate governance mechanisms, risks of weak governance, and benefits of effective oversight. Capital budgeting techniques, including NPV and IRR, are introduced alongside real-options analysis. The module concludes with capital-structure theories, weighed-average cost of capital, and strategic considerations shaping corporate financing and operational decisions across industries.

1. 1. Organizational Forms, Corporate Issuer Features, and Ownership
2. 2. Investors and Other Stakeholders
3. 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
4. 4. Working Capital and Liquidity
5. 5. Capital Investments and Capital Allocation
6. 6. Capital Structure
7. 7. Business Models

This module develops mastery of financial reporting concepts, accounting principles, and analytical tools. Candidates examine income statements, balance sheets, cash-flow statements, inventory and long-term asset accounting, deferred tax items, pension and compensation accounting, and financial reporting quality. The module also covers solvency, liquidity, profitability ratios, and advanced modeling topics including pro forma forecasting and industry analysis. By the end, candidates can evaluate financial performance, interpret disclosures, identify risks, and assess the quality of reported results across diverse accounting environments and regulatory regimes.

1. 1. Introduction to Financial Statement Analysis
2. 2. Analyzing Income Statements
3. 3. Analyzing Balance Sheets
4. 4. Analyzing Statements of Cash Flows I
5. 5. Analyzing Statements of Cash Flows II
6. 6. Analysis of Inventories
7. 7. Analysis of Long-Term Assets
8. 8. Topics in Long-Term Liabilities and Equity
9. 9. Analysis of Income Taxes
10. 10. Financial Reporting Quality
11. 11. Financial Analysis Techniques
12. 12. Introduction to Financial Statement Modeling

This module introduces equity markets, trading mechanisms, market indexes, market efficiency, equity security types, company and industry analysis, forecasting methods, and equity valuation models. Candidates learn how equity markets function, how securities are traded, and how analysts evaluate industries and companies. The module concludes with valuation approaches including dividend discount models, free cash flow models, and relative valuation using multiples. These tools prepare candidates to assess whether securities appear undervalued or overvalued relative to fundamentals and market conditions.

1. 1. Market Organization and Structure
2. 2. Security Market Indexes
3. 3. Market Efficiency
4. 4. Overview of Equity Securities
5. 5. Company Analysis: Past and Present
6. 6. Industry and Competitive Analysis
7. 7. Company Analysis: Forecasting
8. 8. Equity Valuation: Concepts and Basic Tools

This module develops comprehensive understanding of fixed-income securities, markets, valuation, and risk analysis. Candidates study bond features, cash flows, issuance processes, corporate and government funding mechanisms, and fixed-income indexes. Valuation topics include yield measures, spot and forward curves, duration, convexity, key-rate duration, and empirical risk measures. The module explores credit risk, sovereign and corporate credit analysis, securitization structures, and characteristics of ABS and MBS instruments. These tools prepare candidates to evaluate interest-rate risk, creditworthiness, and valuation across global fixed-income markets.

1. 1. Fixed-Income Instrument Features
2. 2. Fixed-Income Cash Flows and Types
3. 3. Fixed-Income Issuance and Trading
4. 4. Fixed-Income Markets for Corporate Issuers
5. 5. Fixed-Income Markets for Government Issuers
6. 6. Fixed-Income Bond Valuation: Prices and Yields
7. 7. Yield and Yield Spread Measures for Fixed-Rate Bonds
8. 8. Yield and Yield Spread Measures for Floating-Rate Instruments
9. 9. The Term Structure of Interest Rates: Spot, Par, and Forward Curves
10. 10. Interest-Rate Risk and Return
11. 11. Yield-Based Bond Duration Measures and Properties
12. 12. Yield-Based Bond Convexity and Portfolio Properties
13. 13. Curve-Based and Empirical Fixed-Income Risk Measures
14. 14. Credit Risk
15. 15. Credit Analysis for Government Issuers
16. 16. Credit Analysis for Corporate Issuers
17. 17. Fixed-Income Securitization
18. 18. Asset-Backed Security (ABS) Instrument and Market Features
19. 19. Mortgage-Backed Security (MBS) Instrument and Market Features

This module introduces derivative instruments, markets, contract features, and valuation principles. Candidates study forwards, futures, swaps, and options, examining payoff structures and risk characteristics. Pricing concepts including arbitrage, replication, cost-of-carry models, forward-rate determination, futures pricing, swap valuation, option valuation, and binomial pricing are emphasized. Put–call parity and replication strategies provide essential tools for understanding derivative valuation mechanics. The module builds competence in using derivatives for risk management, hedging, and investment strategies in global financial markets.

1. 1. Derivative Instrument and Derivative Market Features
2. 2. Forward Commitment and Contingent Claim Features and Instruments
3. 3. Derivative Benefits, Risks, and Issuer and Investor Uses
4. 4. Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives
5. 5. Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities
6. 6. Pricing and Valuation of Futures Contracts
7. 7. Pricing and Valuation of Interest-Rate and Other Swaps
8. 8. Pricing and Valuation of Options
9. 9. Option Replication Using Put–Call Parity
10. 10. Valuing a Derivative Using a One-Period Binomial Model

This module introduces alternative asset classes including private equity, private debt, real estate, infrastructure, natural resources, commodities, hedge funds, and digital assets. Candidates study features, structures, return characteristics, fee models, and diversification benefits relative to traditional assets. The module examines performance evaluation methods, risks, liquidity considerations, valuation differences, and investment vehicles used across alternative markets. By the end, candidates can assess how alternative investments contribute to portfolios, analyze return drivers, and interpret risk exposures across specialized asset classes with distinct behaviors and structural complexities.

1. 1. Alternative Investment Features, Methods, and Structures
2. 2. Alternative Investment: Performance and Returns
3. 3. Investments in Private Capital: Equity and Debt
4. 4. Real Estate and Infrastructure
5. 5. Natural Resources
6. 6. Hedge Funds
7. 7. Introduction to Digital Assets

This module develops the ethical foundation required of all CFA charterholders. Candidates study the CFA Institute Code of Ethics and Standards of Professional Conduct, including responsibilities to clients, employers, the integrity of markets, and the profession. Decision-making frameworks guide candidates through ethical dilemmas. Applications include real-world scenarios involving conflicts of interest, diligence, communication, and professional misconduct. The module concludes with Global Investment Performance Standards (GIPS), ensuring transparent and fair performance reporting across investment firms.

1. 1. Ethics and Trust in the Investment Profession
2. 2. Code of Ethics and Standards of Professional Conduct
3. 3. Standard I – Professionalism
4. 4. Standard II – Integrity of Capital Markets
5. 5. Standard III – Duties to Clients
6. 6. Standard IV – Duties to Employers
7. 7. Standard V – Investment Analysis, Recommendations, and Action
8. 8. Standard VI – Conflicts of Interest
9. 9. Standard VII – Responsibilities as a CFA Member or Candidate
10. 10. Introduction to the Global Investment Performance Standards (GIPS)