TheoryCFA Level 1 Study Guide
Study for the CFA Level 1 with exam topics, practice questions, a free PDF, video walkthrough and timed mock exam links.
How to study for CFA Level 1
- Read the topic list so you know what the exam is likely to cover.
- Answer the free practice questions and read every explanation.
- Download the PDF for offline review.
- Use timed mock exams when your untimed practice feels comfortable.
Topics to review
- The core topics and terminology you'll be tested on
- Rules, standards and best-practice procedures
- Real-world scenarios and how to respond
- Common mistakes and how to avoid them
Try CFA Level 1 questions now
Q1Under the CFA Institute Code of Ethics, members are required to act with which quality toward clients, employers, and the public?
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✓ Correct answer: Integrity, competence, and diligence
The Code of Ethics requires members to act with integrity, competence, diligence, and respect, placing the integrity of the profession and the interests of clients above their own personal interests.
Q2An analyst learns that a new securities regulation in her country is less strict than the relevant CFA Institute Standard. Which must she follow?
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✓ Correct answer: The CFA Institute Standard, because it is stricter
Standard I(A) requires members to comply with the more strict of applicable law or the Code and Standards. When the Standard is stricter than local law, the member must adhere to the Standard.
Q3Which act most clearly violates Standard I(D) Misconduct?
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✓ Correct answer: Being convicted of a crime involving fraud and dishonesty
Standard I(D) prohibits conduct involving dishonesty, fraud, or deceit, or any act that reflects adversely on professional reputation, integrity, or competence. A fraud conviction is a direct violation.
Q4A portfolio manager overhears, in an airport, two executives of a public company discussing an unannounced, material merger. The information is material and nonpublic. Under Standard II(A), the manager should:
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✓ Correct answer: Not trade on or cause others to trade on the information
Standard II(A) prohibits acting or causing others to act on material nonpublic information, regardless of how it was obtained. Accidental possession does not permit trading.
Q5Entering and quickly cancelling large orders to create a false impression of demand and move a stock's price is best described as a violation of:
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✓ Correct answer: Standard II(B) Market Manipulation
Standard II(B) prohibits practices that distort prices or artificially inflate trading volume to mislead market participants, including transaction-based manipulation such as spoofing.
Q6Standard III(A) requires that when a member has discretionary authority over a client account, the member must place:
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✓ Correct answer: The client's interests before their own
Standard III(A) Loyalty, Prudence, and Care requires members to act for the benefit of clients and place clients' interests before their employer's or their own interests.
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