CFA Level I Book: Your Gateway to the CFA® Program

Welcome to the Foundation of Your CFA® Path

If you’re exploring the CFA Program, Level I is your first critical milestone. It’s here that you’ll develop fluency in topics ranging from fundamental ethics principles to the building blocks of financial analysis. Our content is crafted to demystify challenging concepts thoroughly and make your study both rewarding and efficient.

What Makes This Book Different?

1. Exceptional Clarity
   Each topic is presented in simple language with step‐by‐step walkthroughs. You’ll find charts, illustrations, and real‐world scenarios that cement crucial ideas.

2. 10 FREE Sample Questions per Page
   Practice is everything—especially in finance. That’s why every page includes 10 meticulously designed questions that reflect real exam difficulty.

3. Thousands of Quizzes
   With a massive question bank, you can reinforce your understanding topic by topic, ensuring you retain the material long‐term and build confidence one quiz at a time.

4. Open Source & Community‐Driven
   Our source code is available on GitHub, and we welcome all contributions. Help us refine explanations, correct errors, or author new practice questions. Your feedback guides continuous improvement for learners everywhere.

Topics Covered

We align every chapter of this book with the official CFA Level I curriculum—including Ethics, Quantitative Methods, Economics, Financial Statement Analysis, Corporate Issuers, Equity Investments, Fixed Income, Derivatives, Alternative Investments, and Portfolio Management. Each chapter is further divided into streamlined topics to help you organize your study.

Why Contribute?

• Collaborative Learning: Your shared insights, examples, and real‐life applications help shape the most relevant and dynamic study resource.
• Global Impact: Every pull request or suggestion has the potential to support learners worldwide.
• Build Expertise: Explaining finance concepts to others is often the best way to increase your own mastery.

Take the Next Step

1. Start Exploring: Dive into any chapter to begin studying core topics.
2. Practice Continuously: Take advantage of the free quizzes to test your knowledge after each section.
3. Join Us on GitHub: To comment, request features, or submit improvements, create an account on GitHub—it’s quick and free.
4. Stay Motivated: Track your progress, celebrate small wins, and engage with our community for tips and ongoing support.

Together, We’ll Build Your CFA® Foundations

Harness the power of clarity, practice, and collaboration. Whether you’re aiming for a firmer understanding of core principles or gearing up for the final stage of your Level I exam prep, this open‐source book stands ready to guide you—free of charge and united by a community of learners and contributors.

Ready to begin?

Explore the chapters, take the quizzes, and discover the confidence that comes from genuinely mastering the fundamentals of CFA Level I.

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by FinancialAnalystGuide. The CFA® and Chartered Financial Analyst® marks are the property of CFA Institute.

In this section

• Chapter 1: Ethics and Professional Standards
  Chapter 1 of our CFA Level 1 study guide covers the Code of Ethics, Standards of Professional Conduct, GIPS basics, and common ethics exam traps.
  • Ethics and Trust in the Investment Profession
    CFA Level 1 guide to Ethics and Trust in the Investment Profession with formulas, worked examples, and practice questions with explanations.
  • Code of Ethics and Standards of Professional Conduct
    CFA Level 1 guide to Code of Ethics and Standards of Professional Conduct with formulas, worked examples, and practice questions with explanations.
  • Guidance for Standards I–VII
    CFA Level 1 guide to Guidance for Standards I–VII with formulas, worked examples, and practice questions with explanations.
  • Introduction to the Global Investment Performance Standards (GIPS)
    Key formulas and practice questions for Introduction to the Global Investment Performance Standards (GIPS)" in CFA Level 1.
  • Ethics Application
    CFA Level 1 guide to Ethics Application with formulas, worked examples, and practice questions with explanations.
• Chapter 2: Quantitative Methods
  Chapter 2 of our CFA Level 1 study guide covers probability, statistics, time value of money, sampling, and regression with exam-focused explanations.
  • Rates and Returns
    CFA Level 1 guide to Rates and Returns with formulas, worked examples, and practice questions with explanations.
  • Time Value of Money in Finance
    CFA Level 1 guide to Time Value of Money in Finance with formulas, worked examples, and practice questions with explanations.
  • Statistical Measures of Asset Returns
    CFA Level 1 guide to Statistical Measures of Asset Returns with formulas, worked examples, and practice questions with explanations.
  • Probability Trees and Conditional Expectations
    CFA Level 1 guide to Probability Trees and Conditional Expectations with formulas, worked examples, and practice questions with explanations.
  • Portfolio Mathematics
    CFA Level 1 guide to Portfolio Mathematics with formulas, worked examples, and practice questions with explanations.
  • Simulation Methods
    CFA Level 1 guide to Simulation Methods with formulas, worked examples, and practice questions with explanations.
  • Estimation and Inference
    CFA Level 1 guide to Estimation and Inference with formulas, worked examples, and practice questions with explanations.
  • Hypothesis Testing
    CFA Level 1 guide to Hypothesis Testing with formulas, worked examples, and practice questions with explanations.
  • Parametric and Non-Parametric Tests of Independence
    CFA Level 1 guide to Parametric and Non-Parametric Tests of Independence with formulas, worked examples, and practice questions with explanations.
  • Simple Linear Regression
    CFA Level 1 guide to Simple Linear Regression with formulas, worked examples, and practice questions with explanations.
  • Introduction to Big Data Techniques
    CFA Level 1 guide to Introduction to Big Data Techniques with formulas, worked examples, and practice questions with explanations.
• Chapter 3: Economics
  Chapter 3 of our CFA Level 1 study guide covers microeconomics, macroeconomics, currency exchange, monetary policy, and growth concepts tested on the exam.
  • The Firm and Market Structures
    CFA Level 1 guide to The Firm and Market Structures with formulas, worked examples, and practice questions with explanations.
  • Understanding Business Cycles
    CFA Level 1 guide to Understanding Business Cycles with formulas, worked examples, and practice questions with explanations.
  • Fiscal Policy
    CFA Level 1 guide to Fiscal Policy with formulas, worked examples, and practice questions with explanations.
  • Monetary Policy
    CFA Level 1 guide to Monetary Policy with formulas, worked examples, and practice questions with explanations.
  • Introduction to Geopolitics
    CFA Level 1 guide to Introduction to Geopolitics with formulas, worked examples, and practice questions with explanations.
  • International Trade
    CFA Level 1 guide to International Trade with formulas, worked examples, and practice questions with explanations.
  • Capital Flows and the FX Market
    CFA Level 1 guide to Capital Flows and the FX Market with formulas, worked examples, and practice questions with explanations.
  • Exchange Rate Calculations
    CFA Level 1 guide to Exchange Rate Calculations with formulas, worked examples, and practice questions with explanations.
• Chapter 4: Financial Statement Analysis
  Chapter 4 of our CFA Level 1 study guide covers financial reporting, cash flow analysis, inventories, long-lived assets, taxes, and ratio analysis.
  • Introduction to Financial Statement Analysis
    CFA Level 1 guide to Introduction to Financial Statement Analysis with formulas, worked examples, and practice questions with explanations.
  • Analyzing Income Statements
    CFA Level 1 guide to Analyzing Income Statements with formulas, worked examples, and practice questions with explanations.
  • Analyzing Balance Sheets
    CFA Level 1 guide to Analyzing Balance Sheets with formulas, worked examples, and practice questions with explanations.
  • Analyzing Statements of Cash Flows I
    CFA Level 1 guide to Analyzing Statements of Cash Flows I with formulas, worked examples, and practice questions with explanations.
  • Analyzing Statements of Cash Flows II
    CFA Level 1 guide to Analyzing Statements of Cash Flows II with formulas, worked examples, and practice questions with explanations.
  • Analysis of Inventories
    CFA Level 1 guide to Analysis of Inventories with formulas, worked examples, and practice questions with explanations.
  • Analysis of Long-Term Assets
    CFA Level 1 guide to Analysis of Long-Term Assets with formulas, worked examples, and practice questions with explanations.
  • Topics in Long-Term Liabilities and Equity
    CFA Level 1 guide to Topics in Long-Term Liabilities and Equity with formulas, worked examples, and practice questions with explanations.
  • Analysis of Income Taxes
    CFA Level 1 guide to Analysis of Income Taxes with formulas, worked examples, and practice questions with explanations.
  • Financial Reporting Quality
    CFA Level 1 guide to Financial Reporting Quality with formulas, worked examples, and practice questions with explanations.
  • Financial Analysis Techniques
    CFA Level 1 guide to Financial Analysis Techniques with formulas, worked examples, and practice questions with explanations.
  • Introduction to Financial Statement Modeling
    CFA Level 1 guide to Introduction to Financial Statement Modeling with formulas, worked examples, and practice questions with explanations.
• Chapter 5: Corporate Issuers
  Chapter 5 of our CFA Level 1 study guide covers capital budgeting, cost of capital, leverage, working capital management, and corporate governance.
  • Organizational Forms, Corporate Issuer Features, and Ownership
    CFA Level 1 guide to Organizational Forms, Corporate Issuer Features, and Ownership with formulas, worked examples, and practice questions with explanations.
  • Investors and Other Stakeholders
    CFA Level 1 guide to Investors and Other Stakeholders with formulas, worked examples, and practice questions with explanations.
  • Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
    CFA Level 1 guide to Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits with formulas, worked examples, and practice questions with explanations.
  • Working Capital and Liquidity
    CFA Level 1 guide to Working Capital and Liquidity with formulas, worked examples, and practice questions with explanations.
  • Capital Investments and Capital Allocation
    CFA Level 1 guide to Capital Investments and Capital Allocation with formulas, worked examples, and practice questions with explanations.
  • Capital Structure
    CFA Level 1 guide to Capital Structure with formulas, worked examples, and practice questions with explanations.
  • Business Models
    CFA Level 1 guide to Business Models with formulas, worked examples, and practice questions with explanations.
• Chapter 6: Equity Investments
  Chapter 6 of our CFA Level 1 study guide covers market structure, equity indices, valuation basics, and industry and company analysis.
  • Market Organization and Structure
    CFA Level 1 guide to Market Organization and Structure with formulas, worked examples, and practice questions with explanations.
  • Security Market Indexes
    CFA Level 1 guide to Security Market Indexes with formulas, worked examples, and practice questions with explanations.
  • Market Efficiency
    CFA Level 1 guide to Market Efficiency with formulas, worked examples, and practice questions with explanations.
  • Overview of Equity Securities
    CFA Level 1 guide to Overview of Equity Securities with formulas, worked examples, and practice questions with explanations.
  • Company Analysis: Past and Present
    CFA Level 1 guide to Company Analysis: Past and Present with formulas, worked examples, and practice questions with explanations.
  • Industry and Competitive Analysis
    CFA Level 1 guide to Industry and Competitive Analysis with formulas, worked examples, and practice questions with explanations.
  • Company Analysis: Forecasting
    CFA Level 1 guide to Company Analysis: Forecasting with formulas, worked examples, and practice questions with explanations.
  • Equity Valuation: Concepts and Basic Tools
    CFA Level 1 guide to Equity Valuation: Concepts and Basic Tools with formulas, worked examples, and practice questions with explanations.
• Chapter 7: Fixed Income
  Chapter 7 of our CFA Level 1 study guide covers bond pricing, yield measures, term structure, duration, convexity, and fixed income risks.
  • Fixed-Income Instrument Features
    CFA Level 1 guide to Fixed-Income Instrument Features with formulas, worked examples, and practice questions with explanations.
  • Fixed-Income Cash Flows and Types
    CFA Level 1 guide to Fixed-Income Cash Flows and Types with formulas, worked examples, and practice questions with explanations.
  • Fixed-Income Issuance and Trading
    CFA Level 1 guide to Fixed-Income Issuance and Trading with formulas, worked examples, and practice questions with explanations.
  • Fixed-Income Markets for Corporate Issuers
    CFA Level 1 guide to Fixed-Income Markets for Corporate Issuers with formulas, worked examples, and practice questions with explanations.
  • Fixed-Income Markets for Government Issuers
    CFA Level 1 guide to Fixed-Income Markets for Government Issuers with formulas, worked examples, and practice questions with explanations.
  • Fixed-Income Bond Valuation: Prices and Yields
    CFA Level 1 guide to Fixed-Income Bond Valuation: Prices and Yields with formulas, worked examples, and practice questions with explanations.
  • Yield and Yield Spread Measures for Fixed-Rate Bonds
    CFA Level 1 guide to Yield and Yield Spread Measures for Fixed-Rate Bonds with formulas, worked examples, and practice questions with explanations.
  • Yield and Yield Spread Measures for Floating-Rate Instruments
    CFA Level 1 guide to Yield and Yield Spread Measures for Floating-Rate Instruments with formulas, worked examples, and practice questions with explanations.
  • The Term Structure of Interest Rates: Spot, Par, and Forward Curves
    Key formulas and practice questions for The Term Structure of Interest Rates: Spot, Par, and Forward Curves" in CFA Level 1.
  • Interest Rate Risk and Return
    CFA Level 1 guide to Interest Rate Risk and Return with formulas, worked examples, and practice questions with explanations.
  • Yield-Based Bond Duration Measures and Properties
    CFA Level 1 guide to Yield-Based Bond Duration Measures and Properties with formulas, worked examples, and practice questions with explanations.
  • Yield-Based Bond Convexity and Portfolio Properties
    CFA Level 1 guide to Yield-Based Bond Convexity and Portfolio Properties with formulas, worked examples, and practice questions with explanations.
  • Curve-Based and Empirical Fixed-Income Risk Measures
    CFA Level 1 guide to Curve-Based and Empirical Fixed-Income Risk Measures with formulas, worked examples, and practice questions with explanations.
  • Credit Risk
    CFA Level 1 guide to Credit Risk with formulas, worked examples, and practice questions with explanations.
  • Credit Analysis for Government Issuers
    CFA Level 1 guide to Credit Analysis for Government Issuers with formulas, worked examples, and practice questions with explanations.
  • Credit Analysis for Corporate Issuers
    CFA Level 1 guide to Credit Analysis for Corporate Issuers with formulas, worked examples, and practice questions with explanations.
  • Fixed-Income Securitization
    CFA Level 1 guide to Fixed-Income Securitization with formulas, worked examples, and practice questions with explanations.
  • Asset-Backed Security (ABS) Instrument and Market Features
    CFA Level 1 guide to Asset-Backed Security (ABS) Instrument and Market Features with formulas, worked examples, and practice questions with explanations.
  • Mortgage-Backed Security (MBS) Instrument and Market Features
    CFA Level 1 guide to Mortgage-Backed Security (MBS) Instrument and Market Features with formulas, worked examples, and practice questions with explanations.
• Chapter 8: Derivatives
  Chapter 8 of our CFA Level 1 study guide covers forwards, futures, options, swaps, and core derivative payoff and hedging applications.
  • Derivative Instrument and Derivative Market Features
    CFA Level 1 guide to Derivative Instrument and Derivative Market Features with formulas, worked examples, and practice questions with explanations.
  • Forward Commitment and Contingent Claim Features and Instruments
    CFA Level 1 guide to Forward Commitment and Contingent Claim Features and Instruments with formulas, worked examples, and practice questions with explanations.
  • Derivative Benefits, Risks, and Issuer and Investor Uses
    CFA Level 1 guide to Derivative Benefits, Risks, and Issuer and Investor Uses with formulas, worked examples, and practice questions with explanations.
  • Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives
    Key formulas and practice questions for Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives" in CFA Level 1.
  • Pricing and Valuation of Forward Contracts and Underlying with Varying Maturities
    Study Pricing and Valuation of Forward Contracts and Underlying with Varying Maturities for CFA Level 1 with formulas and practice questions with explanations.
  • Pricing and Valuation of Futures Contracts
    CFA Level 1 guide to Pricing and Valuation of Futures Contracts with formulas, worked examples, and practice questions with explanations.
  • Pricing and Valuation of Interest Rates and Other Swaps
    CFA Level 1 guide to Pricing and Valuation of Interest Rates and Other Swaps with formulas, worked examples, and practice questions with explanations.
  • Pricing and Valuation of Options
    CFA Level 1 guide to Pricing and Valuation of Options with formulas, worked examples, and practice questions with explanations.
  • Option Replication Using Put–Call Parity
    CFA Level 1 guide to Option Replication Using Put–Call Parity with formulas, worked examples, and practice questions with explanations.
  • Valuing a Derivative Using a One-Period Binomial Model
    CFA Level 1 guide to Valuing a Derivative Using a One-Period Binomial Model with formulas, worked examples, and practice questions with explanations.
• Chapter 9: Alternative Investments
  Chapter 9 of our CFA Level 1 study guide covers real estate, private equity, hedge funds, commodities, infrastructure, and diversification benefits.
  • Alternative Investment Features, Methods, and Structures
    CFA Level 1 guide to Alternative Investment Features, Methods, and Structures with formulas, worked examples, and practice questions with explanations.
  • Alternative Investment Performance and Returns
    CFA Level 1 guide to Alternative Investment Performance and Returns with formulas, worked examples, and practice questions with explanations.
  • Investments in Private Capital: Equity and Debt
    CFA Level 1 guide to Investments in Private Capital: Equity and Debt with formulas, worked examples, and practice questions with explanations.
  • Real Estate and Infrastructure
    CFA Level 1 guide to Real Estate and Infrastructure with formulas, worked examples, and practice questions with explanations.
  • Natural Resources
    CFA Level 1 guide to Natural Resources with formulas, worked examples, and practice questions with explanations.
  • Hedge Funds
    CFA Level 1 guide to Hedge Funds with formulas, worked examples, and practice questions with explanations.
  • Introduction to Digital Assets
    CFA Level 1 guide to Introduction to Digital Assets with formulas, worked examples, and practice questions with explanations.
• Chapter 10: Portfolio Management
  Chapter 10 of our CFA Level 1 study guide covers portfolio risk and return, diversification, CAPM, performance measures, and investment policy basics.
  • Portfolio Risk and Return: Part I
    CFA Level 1 guide to Portfolio Risk and Return: Part I with formulas, worked examples, and practice questions with explanations.
  • Portfolio Risk and Return: Part II
    CFA Level 1 guide to Portfolio Risk and Return: Part II with formulas, worked examples, and practice questions with explanations.
  • Portfolio Management: An Overview
    CFA Level 1 guide to Portfolio Management: An Overview with formulas, worked examples, and practice questions with explanations.
  • Basics of Portfolio Planning and Construction
    CFA Level 1 guide to Basics of Portfolio Planning and Construction with formulas, worked examples, and practice questions with explanations.
  • The Behavioral Biases of Individuals
    CFA Level 1 guide to The Behavioral Biases of Individuals with formulas, worked examples, and practice questions with explanations.
  • Introduction to Risk Management
    CFA Level 1 guide to Introduction to Risk Management with formulas, worked examples, and practice questions with explanations.