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CFA practice questions, CFA exam questions and CFA Level 1 practice exam for the 2026 curriculum

Level I is a volume exam. It rewards candidates who work thousands of questions across the whole curriculum, not the ones who read the books twice. The pass rate has hovered around 41% for a decade, and the difference between passing and failing is almost always how much timed question practice you did.

  • Unlimited CFA-style questions across all ten Level I topic areas
  • Weighted toward Ethics, Financial Statement Analysis, Equity and Fixed Income
  • Every answer explained, so you learn the reasoning and not just the key
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The short answer

The CFA Level I exam is 180 multiple-choice questions split into two 135-minute sessions, 4.5 hours of testing in total, delivered by computer at Prometric centers in February, May, August and November. Questions are three-option multiple choice and cover ten topic areas, led by Ethical and Professional Standards at 15% to 20% of the exam. CFA Institute does not publish the minimum passing score, and the ten-year average Level I pass rate is 41%. You must also complete at least one Practical Skills Module to receive your result. Aspirants.ai generates unlimited CFA-style practice questions across every topic area, explains every answer, and costs from $9 a month.

Last updated August 2026

Work the questions

CFA practice questions with answers and explanations

Eight CFA Level I sample questions in the real three-option format, spread across the heaviest-weighted topic areas. Read every rationale, including why the wrong answers are wrong. On a 41% pass rate exam, that habit is what separates candidates who clear the MPS from candidates who resit.

Question 1 · Ethical and Professional Standards

An analyst who publishes research on a pharmaceutical company is offered a paid consulting role by that company's largest shareholder. She discloses the arrangement to her employer's compliance department but does not mention it in her published research. According to the CFA Institute Standards of Professional Conduct, this most likely:

  1. A. complies with the Standards, because disclosure to her employer is sufficient
  2. B. violates Standard VI(A) Disclosure of Conflicts
  3. C. violates Standard IV(B) Additional Compensation Arrangements only
Show the answer and explanation

B. violates Standard VI(A) Disclosure of Conflicts

Standard VI(A) requires conflicts to be disclosed to clients and prospective clients, not just to an employer, and the disclosure has to be prominent and in plain language. Readers of her research have no way to know about a payment that could reasonably impair her objectivity, so (A) fails. Standard IV(B) is genuinely engaged as well, since accepting outside compensation that competes with her employer's interest requires written consent from all parties, but the word "only" makes (C) wrong. The Standards require conflicts to be disclosed, not avoided, which is a distinction Level I tests repeatedly.

Question 2 · Financial Statement Analysis

During a period of rising prices with stable inventory quantities, a company using LIFO will most likely report, relative to an otherwise identical company using FIFO:

  1. A. higher net income and higher ending inventory
  2. B. lower net income and lower ending inventory
  3. C. lower net income and higher ending inventory
Show the answer and explanation

B. lower net income and lower ending inventory

Under LIFO the most recently purchased and therefore most expensive units flow into cost of goods sold. Higher COGS means lower gross profit, lower pretax income and lower net income. The older, cheaper costs stay on the balance sheet, so ending inventory is lower than under FIFO. That combination is exactly why LIFO is attractive for US tax purposes when prices are rising, and why the LIFO reserve is disclosed: it lets you convert a LIFO filer back to a FIFO basis for comparison. Remember that LIFO is permitted under US GAAP but prohibited under IFRS, so this difference matters any time you compare a US filer against an international peer.

Question 3 · Fixed Income

A 10-year option-free bond has a modified duration of 7.2 and an annual convexity of 65. If its yield to maturity rises by 100 basis points, the estimated percentage change in price, using both duration and convexity, is closest to:

  1. A. -7.20%
  2. B. -6.88%
  3. C. -7.53%
Show the answer and explanation

B. -6.88%

The duration effect is the negative of modified duration times the yield change: -7.2 x 0.01 = -7.20%. The convexity adjustment is 0.5 x convexity x (yield change) squared: 0.5 x 65 x (0.01)^2 = 0.00325, or +0.325%. Adding them gives -7.20% + 0.33% = -6.88%. Answer (A) stops at duration alone, which always overstates the loss on an option-free bond because the price-yield relationship is convex. The convexity term is positive whether yields rise or fall, so it damps losses and amplifies gains. Answer (C) subtracts the adjustment instead of adding it.

Question 4 · Equity Investments

A stock has just paid an annual dividend of $2.00. Dividends are expected to grow at a constant 4% a year indefinitely, and the required return on equity is 10%. Using the Gordon growth model, the intrinsic value of the stock is closest to:

  1. A. $33.33
  2. B. $34.67
  3. C. $50.00
Show the answer and explanation

B. $34.67

The Gordon growth model discounts next year's dividend, not the one already paid. D1 = D0 x (1 + g) = $2.00 x 1.04 = $2.08. Value = D1 / (r - g) = 2.08 / (0.10 - 0.04) = 2.08 / 0.06 = $34.67. Answer (A) is the classic slip of putting the $2.00 just-paid dividend in the numerator without growing it a period. The model only holds when r exceeds g and growth is genuinely constant, which is why it suits mature dividend payers and breaks down badly on high-growth firms where a multistage model is required.

Question 5 · Quantitative Methods

An analyst tests the null hypothesis that a fund's mean monthly excess return equals zero against a two-sided alternative at the 5% level of significance. The computed t-statistic is 1.85 and the critical value is 1.98. The analyst should most appropriately:

  1. A. reject the null hypothesis and conclude the mean excess return differs from zero
  2. B. fail to reject the null hypothesis
  3. C. accept the null hypothesis as true
Show the answer and explanation

B. fail to reject the null hypothesis

The absolute value of the test statistic, 1.85, is smaller than the critical value of 1.98, so it falls inside the region of non-rejection and the null survives at the 5% level. Answer (A) reverses the decision rule. Answer (C) is the wording trap CFA Institute sets again and again: you never accept a null hypothesis. Failing to reject means the evidence was not strong enough to overturn it, not that it has been proven true. Note that at the 10% level, where the critical value is roughly 1.65, this same statistic would have led to rejection, which is a useful reminder that the significance level is a choice you make before seeing the data.

Question 6 · Derivatives

A European call and a European put on the same non-dividend-paying stock share a strike price of $50 and expire in one year. The stock trades at $52, the annual risk-free rate is 4% compounded annually, and the call is priced at $6.50. The no-arbitrage price of the put is closest to:

  1. A. $2.58
  2. B. $4.50
  3. C. $6.42
Show the answer and explanation

A. $2.58

Put-call parity for European options on a non-dividend-paying stock says c + X / (1 + r)^T = p + S0. Rearranged, p = c + X / (1 + r)^T - S0 = 6.50 + 50/1.04 - 52 = 6.50 + 48.08 - 52 = $2.58. Answer (B) fails to discount the strike price, and (C) moves the stock price the wrong way. It is worth memorizing parity in its rearranged forms as well, because Level I often asks you to synthesize one of the four instruments from the other three rather than to price a put outright.

Question 7 · Corporate Issuers

A company has a target capital structure of 40% debt and 60% equity. Its before-tax cost of debt is 6%, its cost of equity is 12%, and its marginal tax rate is 25%. The weighted average cost of capital is closest to:

  1. A. 9.60%
  2. B. 9.00%
  3. C. 8.40%
Show the answer and explanation

B. 9.00%

WACC = wd x rd x (1 - tax rate) + we x re. The after-tax cost of debt is 6% x (1 - 0.25) = 4.5%, so the debt component is 0.40 x 4.5% = 1.8%. The equity component is 0.60 x 12% = 7.2%. Adding gives 9.0%. Answer (A) of 9.6% is what you get by forgetting that interest is tax deductible and using the full 6% before-tax cost, which is the most common WACC error at Level I. Only debt receives the tax adjustment; there is no equivalent shield on the cost of equity. Use target weights, not current book weights, whenever a question supplies both.

Question 8 · Portfolio Management

Using the capital asset pricing model, the expected return on a stock with a beta of 1.4, when the risk-free rate is 3% and the expected market return is 9%, is closest to:

  1. A. 12.60%
  2. B. 11.40%
  3. C. 15.60%
Show the answer and explanation

B. 11.40%

CAPM states that E(Ri) = Rf + beta x [E(Rm) - Rf]. The market risk premium is the excess of the market return over the risk-free rate, 9% - 3% = 6%, so E(Ri) = 3% + 1.4 x 6% = 3% + 8.4% = 11.4%. Answer (A) multiplies beta by the whole expected market return of 9% instead of by the risk premium, which is the single most frequent CAPM mistake. Answer (C) adds the full market return on top of the beta-adjusted premium. CAPM prices systematic risk only, on the logic that unsystematic risk can be diversified away and the market will not pay you for bearing risk you chose not to eliminate.

These eight are a sample. Inside Aspirants.ai you can generate unlimited CFA exam questions on any of the ten Level I topic areas, with the same depth of explanation on every answer choice.

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What the CFA Level I exam looks like

The CFA Program has three levels, and Level I is where almost every candidate starts. It is a computer-based exam of 180 multiple-choice questions delivered in two sessions of 135 minutes each, 90 questions per session, with an optional break in between. Total testing time is 4.5 hours. Every question is standalone with three answer options, so there is no penalty structure to game and no partial credit: you either pick the right option or you do not. Level I runs four times a year, usually in February, May, August and November, and you schedule an appointment inside the relevant window at a Prometric test center. Results arrive within five to seven weeks of your exam date, once your Practical Skills Module is complete.

  • 180 multiple-choice questions in two 135-minute sessions
  • 4.5 hours of testing, 90 questions per session
  • Three answer options per question, no partial credit
  • Offered in February, May, August and November

CFA Level 1 topic weights for 2026

The 2026 curriculum keeps the same ten topic areas and the same weight ranges as 2025, so prep built on the current outline is still accurate. Ethical and Professional Standards is the single heaviest area at 15% to 20%, and it is the area CFA Institute weighs most when a candidate sits near the passing line. Financial Statement Analysis, Equity Investments and Fixed Income each carry 11% to 14%. Portfolio Management is 8% to 12%, Alternative Investments 7% to 10%, and Quantitative Methods, Economics, Corporate Issuers and Derivatives sit at 6% to 9% each, with Derivatives at the lower end. The weights tell you where to spend hours: Ethics plus the three big analysis areas are roughly half the exam on their own.

  • Ethical and Professional Standards: 15% to 20%, the heaviest area
  • Financial Statement Analysis, Equity and Fixed Income: 11% to 14% each
  • Portfolio Management 8% to 12%, Alternatives 7% to 10%
  • Quant, Economics, Corporate Issuers and Derivatives: 6% to 9% each

How the CFA exam is scored and what the pass rate is

CFA Institute reports results only as pass or fail, alongside a chart showing your performance band against the minimum passing score. It does not publish the MPS itself, so no candidate can tell you the exact percentage needed. The Board of Governors sets the MPS after each administration when the curriculum or the candidate population changes significantly, and holds it steady through equating when they do not. The practical read is that mid-70s accuracy on realistic practice consistently clears it, and mid-60s does not. The ten-year average Level I pass rate is 41%. The February 2026 administration came in at 45%, with first-time candidates at 50% and candidates who had deferred at least once at 30%, which is a useful warning about deferring.

  • Reported as pass or fail with a performance band chart
  • The minimum passing score is never published
  • Ten-year average Level I pass rate: 41%
  • February 2026: 45% overall, 50% first-time, 30% for deferrers

How much the CFA exam costs in 2026

CFA Institute restructured its pricing for the February 2026 exams: the one-time $350 enrollment fee was eliminated, and registration fees rose. Level I and Level II now cost $1,140 at the early registration deadline and $1,490 at standard registration; Level III is $1,240 early and $1,590 standard. CFA Institute states total exam fees across all three levels range from $3,520 to $4,600 depending on when you register, and that assumes you pass every level on the first attempt. Registering early is the cheapest lever you have: it saves $350 per level, which is more than most question banks cost. Prep materials, whether a full provider course or a question bank, sit on top of these fees.

  • The $350 enrollment fee was eliminated as of February 2026
  • Level I and II: $1,140 early, $1,490 standard registration
  • Level III: $1,240 early, $1,590 standard registration
  • All three levels total $3,520 to $4,600 if you pass first time

Retakes, the Practical Skills Module and how long to study

You can sit a CFA exam a maximum of twice per calendar year, and not in consecutive windows or windows within six months of each other, so a failed February attempt puts your next realistic sitting in August. You must also complete at least one Practical Skills Module for your level before your result is released; the module is not graded pass or fail, but skipping it holds up your score. CFA Institute has long cited roughly 300 hours of study per level as the benchmark, which works out to about 15 hours a week over five months. Candidates who pass tend to spend the back half of that window almost entirely on timed practice questions and mock exams rather than reading.

  • Maximum two attempts per calendar year, never consecutive windows
  • At least one Practical Skills Module required to receive your result
  • Roughly 300 hours per level is the long-standing benchmark
  • Shift to timed question practice for the second half of your prep

Compare the options

CFA Level 1 prep options compared

What each route costs and what it gets you. Providers discount often, so verify current pricing before you buy.

Option Typical US cost What you get Best for
Kaplan Schweser about $600 to $1,900 SchweserNotes, QBank, mock exams, class options The most widely used third-party package
UWorld CFA about $400 to $1,300 Question bank with detailed explanations, video lessons Candidates who learn from question rationales
MM (Mark Meldrum) about $300 to $600 Video-led curriculum coverage with a question bank Video learners on a tighter budget
CFA Institute Learning Ecosystem included in registration Official curriculum, practice questions, mock exams The official baseline every candidate already has
Aspirants.ai from $9/mo Unlimited CFA-style questions across all ten topics, every answer explained Adding high-volume timed practice to any course above

CFA Institute registration fees ($1,140 to $1,590 per level) are separate from any prep provider. Competitor prices are approximate and change often. Verify current pricing with each provider before you buy.

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Honest answers

CFA practice questions, answered straight.

The CFA Level I exam has 180 multiple-choice questions, split into two sessions of 90 questions each. Every session runs 135 minutes, so total testing time is 4.5 hours with an optional break between sessions. Each question has three answer options, and there is no partial credit and no penalty for guessing.

The ten-year average CFA Level I pass rate is 41%, according to CFA Institute. The February 2026 administration passed 45% of candidates. First-time candidates cleared at 50% while candidates who had deferred at least once passed at only 30%, so deferring your sitting tends to hurt your odds.

CFA Institute does not publish the minimum passing score for any CFA level. Results come back as pass or fail with a chart showing your performance against the MPS. In practice, candidates who consistently score in the mid-70s on realistic timed practice questions clear it, while mid-60s performance usually does not.

For 2026, CFA Level I and Level II registration costs $1,140 at the early deadline and $1,490 at standard registration, and Level III costs $1,240 early or $1,590 standard. The $350 enrollment fee was eliminated as of February 2026. CFA Institute puts the all-three-levels total at $3,520 to $4,600.

You can sit a CFA exam a maximum of twice per calendar year, and never in consecutive exam windows or windows within six months of each other. So if you fail in February, your next realistic attempt is the August window rather than May. There is no lifetime cap on total attempts.

CFA Institute has long cited about 300 hours of study per level, which is roughly 15 hours a week across five months. Candidates who pass typically spend the first half on curriculum coverage and the second half almost entirely on timed practice questions and full mock exams under exam conditions.

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