Free CFA Level 1 Readiness Check

Sample CFA L1 Readiness practice questions

These sample items mirror the domains in the timed CFA L1 Readiness mock. Correct answers and explanations unlock inside the practice session.

1. Sample 1

   Which statement correctly describes the six components of the CFA Institute Code of Ethics as tested in CFA ethical standards?

   $$\text{Client first. Integrity always.}$$

   • A. the six components of the CFA Institute Code of Ethics always eliminates all investment, legal, and regulatory risk for every customer
   • B. the six components of the CFA Institute Code of Ethics has no application in US securities, insurance, or licensing markets
   • C. 1) Act with integrity, competence, diligence, respect
   • D. the six components of the CFA Institute Code of Ethics is identical to FDIC deposit insurance for every customer account

2. Sample 2

   Which statement correctly describes the difference between systematic and unsystematic risk as tested in portfolio management?

   • A. the difference between systematic and unsystematic risk always eliminates all investment, legal, and regulatory risk for every customer
   • B. Systematic (market/beta) risk: affects all assets, cannot be diversified away — rewarded with higher expected return
   • C. the difference between systematic and unsystematic risk has no application in US securities, insurance, or licensing markets
   • D. the difference between systematic and unsystematic risk is identical to FDIC deposit insurance for every customer account

3. Sample 3

   Which statement correctly describes the holding period yield on a money market instrument as tested in quantitative methods?

   $$HPY = \frac{P_1 - P_0 + D_1}{P_0} = \frac{F - P_0}{P_0}$$

   • A. the holding period yield on a money market instrument always eliminates all investment, legal, and regulatory risk for every customer
   • B. the holding period yield on a money market instrument has no application in US securities, insurance, or licensing markets
   • C. Actual return over holding period — not annualized
   • D. the holding period yield on a money market instrument is identical to FDIC deposit insurance for every customer account

4. Sample 4

   Which statement correctly describes the three sections of the cash flow statement as tested in financial reporting analysis?

   • A. the three sections of the cash flow statement always eliminates all investment, legal, and regulatory risk for every customer
   • B. the three sections of the cash flow statement has no application in US securities, insurance, or licensing markets
   • C. Operating: cash from core business operations
   • D. the three sections of the cash flow statement is identical to FDIC deposit insurance for every customer account

5. Sample 5

   Which statement correctly describes the M&M theorem and what are its real-world implications as tested in corporate issuers?

   $$V_L = V_U + t \times D$$

   • A. the M&M theorem and what are its real-world implications always eliminates all investment, legal, and regulatory risk for every customer
   • B. Without taxes: capital structure irrelevant (firm value independent of leverage)
   • C. the M&M theorem and what are its real-world implications has no application in US securities, insurance, or licensing markets
   • D. the M&M theorem and what are its real-world implications is identical to FDIC deposit insurance for every customer account

What is the CFA L1 Readiness exam?

Who this exam is for

CFA Level 1 candidates who want a weighted topic baseline before committing to a full mock provider.

How to prepare

Start with this free timed diagnostic to see which CFA L1 Readiness domains are weak, then review the published CFA Institute outline on the official site and drill missed topics with the linked Anki deck before exam day.

Confirm current fees, eligibility, and scheduling with CFA Institute before you book the real exam.

Topic outline

Core domains candidates usually study for CFA L1 Readiness: Ethical and Professional Standards, Quantitative Methods, Economics, Financial Statement Analysis, Corporate Issuers, Equity Investments, Fixed Income, Derivatives, Alternative Investments, Portfolio Management.

• Ethical and Professional Standards

• Quantitative Methods

• Economics

• Financial Statement Analysis

• Corporate Issuers

• Equity Investments

• Fixed Income

• Derivatives

• Alternative Investments

• Portfolio Management

About this free CFA Level 1 practice test

Official CFA Level 1 facts

Structure and domain weights candidates verify against the certifying body before exam day.

CFA Level 1 practice test — quick answers

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Guides for this exam

State rules, test-day logistics, and study plans that point back to this practice path.

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