CFA Level 1 Notes

Complete Topic-by-Topic Study Notes for 2026

Free study notes covering all 10 subjects and 59 modules of the CFA Level I curriculum. Key concepts, formulas, decision frameworks, and exam tips -- organized by topic for efficient review.

314

Key Concepts

163

Formulas

Decision Frameworks

Modules

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Notes by Subject

Jump to any subject below to see all modules and key takeaways.

Quantitative Methods

11 modules · 6-9%

60 concepts43 formulas14 decisions

Economics

8 modules · 6-9%

45 concepts18 formulas8 decisions

Financial Statement Analysis

9 modules · 11-14%

46 concepts31 formulas9 decisions

Corporate Issuers

7 modules · 6-9%

39 concepts14 formulas7 decisions

Equity Investments

6 modules · 11-14%

32 concepts16 formulas4 decisions

Fixed Income

5 modules · 11-14%

22 concepts17 formulas4 decisions

Derivatives

2 modules · 5-7%

10 concepts10 formulas2 decisions

Alternative Investments

3 modules · 5-8%

14 concepts5 formulas2 decisions

Portfolio Management

3 modules · 8-12%

16 concepts9 formulas3 decisions

Ethical & Professional Standards

5 modules · 15-20%

30 concepts5 decisions

Detailed Notes by Subject

Quantitative Methods

Exam weight: 6-9% · 11 modules · 60 concepts · 43 formulas

Key Takeaways

1.Time Value of Money is the foundation -- PV, FV, annuity, and perpetuity formulas appear across multiple subjects
2.Understand the difference between population and sample statistics, and when to use each
3.Hypothesis testing follows a consistent 7-step framework: state hypotheses, choose test, set significance, compute statistic, make decision

Rates and Returns

8 concepts · 6 formulas · 2 decisions

Time Value of Money in Finance

7 concepts · 7 formulas · 2 decisions

Statistical Measures of Asset Returns

7 concepts · 6 formulas · 2 decisions

Probability Trees and Conditional Expectations

6 concepts · 4 formulas · 1 decisions

Portfolio Mathematics

5 concepts · 4 formulas · 1 decisions

Simulation Methods

4 concepts · 2 formulas · 1 decisions

Estimation and Inference

5 concepts · 3 formulas · 1 decisions

Hypothesis Testing

5 concepts · 3 formulas · 1 decisions

Parametric and Non-Parametric Tests of Independence

3 concepts · 3 formulas · 1 decisions

Simple Linear Regression

5 concepts · 5 formulas · 1 decisions

Introduction to Big Data Techniques

5 concepts · 1 decisions

View full Quantitative Methods notes

Economics

Exam weight: 6-9% · 8 modules · 45 concepts · 18 formulas

Key Takeaways

1.Supply and demand curves shift vs movement along -- know the difference and what causes each
2.GDP can be measured three ways: expenditure, income, and value-added approaches
3.Exchange rates are quoted as price currency per unit of base currency -- forward premiums/discounts reflect interest rate differentials

The Firm and Market Structures

7 concepts · 6 formulas · 1 decisions

Understanding Business Cycles

5 concepts · 1 decisions

Fiscal Policy

6 concepts · 3 formulas · 1 decisions

Monetary Policy

6 concepts · 3 formulas · 1 decisions

Introduction to Geopolitics

5 concepts · 1 decisions

International Trade

5 concepts · 1 formulas · 1 decisions

Capital Flows and the FX Market

5 concepts · 1 formulas · 1 decisions

Exchange Rate Calculations

6 concepts · 4 formulas · 1 decisions

View full Economics notes

Financial Statement Analysis

Exam weight: 11-14% · 9 modules · 46 concepts · 31 formulas

Key Takeaways

1.Revenue recognition under IFRS 15 follows a 5-step model -- identify contract, performance obligations, transaction price, allocate, recognize
2.FIFO vs LIFO affects COGS, inventory values, taxes, and profitability ratios differently in rising vs falling price environments
3.Cash flow from operations can be calculated using direct or indirect method -- indirect starts with net income and adjusts for non-cash items

Introduction to Financial Statement Analysis

6 concepts · 1 decisions

Analyzing Income Statements

6 concepts · 6 formulas · 1 decisions

Analyzing Balance Sheets

5 concepts · 4 formulas · 1 decisions

Analyzing Statements of Cash Flows I

6 concepts · 3 formulas · 1 decisions

Analyzing Statements of Cash Flows II

3 concepts · 5 formulas · 1 decisions

Analysis of Inventories

5 concepts · 4 formulas · 1 decisions

Analysis of Long-Term Assets

5 concepts · 4 formulas · 1 decisions

Topics in Long-Term Liabilities and Equity

4 concepts · 2 formulas · 1 decisions

Analysis of Income Taxes

6 concepts · 3 formulas · 1 decisions

View full Financial Statement Analysis notes

Corporate Issuers

Exam weight: 6-9% · 7 modules · 39 concepts · 14 formulas

Organizational Forms, Corporate Issuer Features, and Ownership

6 concepts · 1 decisions

Investors and Other Stakeholders

5 concepts · 1 decisions

Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits

5 concepts · 1 decisions

Working Capital and Liquidity

5 concepts · 6 formulas · 1 decisions

Capital Investments and Capital Allocation

6 concepts · 4 formulas · 1 decisions

Capital Structure

6 concepts · 4 formulas · 1 decisions

Business Models

6 concepts · 1 decisions

Equity Investments

Exam weight: 11-14% · 6 modules · 32 concepts · 16 formulas

Key Takeaways

1.Intrinsic value = PV of expected future cash flows -- the Gordon Growth Model is the simplest DDM: V = D1/(r-g)
2.Market efficiency has three forms -- weak (past prices), semi-strong (public info), strong (all info including private)
3.Price multiples (P/E, P/B, EV/EBITDA) are relative valuation tools -- always compare within the same industry

Market Organization and Structure

7 concepts · 3 formulas · 1 decisions

Security Market Indexes

4 concepts · 2 formulas · 1 decisions

Market Efficiency

6 concepts · 1 decisions

Overview of Equity Securities

5 concepts · 3 formulas

Company Analysis: Past and Present

4 concepts · 2 formulas

Equity Valuation: Concepts and Basic Tools

6 concepts · 6 formulas · 1 decisions

View full Equity Investments notes

Fixed Income

Exam weight: 11-14% · 5 modules · 22 concepts · 17 formulas

Key Takeaways

1.Bond price moves inversely to yield -- duration measures sensitivity, convexity measures the curvature of the price-yield relationship
2.Spot rates are zero-coupon yields; forward rates are implied future rates derived from the spot curve
3.Credit spreads widen during economic downturns and tighten during expansions -- default risk, recovery rate, and loss given default are key metrics

Fixed-Income Instrument Features

4 concepts · 2 formulas · 1 decisions

Fixed-Income Cash Flows and Types

4 concepts · 3 formulas

Fixed-Income Bond Valuation

4 concepts · 4 formulas · 1 decisions

Interest Rate Risk and Duration

5 concepts · 5 formulas · 1 decisions

Credit Risk and Credit Analysis

5 concepts · 3 formulas · 1 decisions

View full Fixed Income notes

Derivatives

Exam weight: 5-7% · 2 modules · 10 concepts · 10 formulas

Derivative Instruments and Markets

5 concepts · 5 formulas · 1 decisions

Derivative Pricing and Valuation

5 concepts · 5 formulas · 1 decisions

Alternative Investments

Exam weight: 5-8% · 3 modules · 14 concepts · 5 formulas

Alternative Investment Features, Methods, and Structures

5 concepts · 3 formulas · 1 decisions

Private Capital: Equity and Debt

4 concepts

Real Estate, Infrastructure, and Hedge Funds

5 concepts · 2 formulas · 1 decisions

Portfolio Management

Exam weight: 8-12% · 3 modules · 16 concepts · 9 formulas

Portfolio Risk and Return: Part I

6 concepts · 4 formulas · 1 decisions

Portfolio Risk and Return: Part II

5 concepts · 5 formulas · 1 decisions

Portfolio Management Overview and Planning

5 concepts · 1 decisions

Ethical & Professional Standards

Exam weight: 15-20% · 5 modules · 30 concepts · 0 formulas

Key Takeaways

1.The Code of Ethics has 6 components and the Standards have 7 main categories (I-VII) with sub-standards
2.Standard I(A) Knowledge of the Law -- follow the stricter of local law or CFA Standards when they conflict
3.GIPS (Global Investment Performance Standards) require firms to present composite performance using specific calculation methods

Ethics and Trust in the Investment Profession

6 concepts · 1 decisions

Code of Ethics and Standards of Professional Conduct

6 concepts · 1 decisions

Guidance for Standards I–VII

8 concepts · 1 decisions

Introduction to GIPS

5 concepts · 1 decisions

Ethics Application

5 concepts · 1 decisions

View full Ethical & Professional Standards notes

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