Free CFA® Level 1 practice questions & mock exam
Try one question from each topic and spot what to review next. Get your score and explanations when you finish, with no sign-up.
- 10 questions
- 1 per topic
- ~10–15 min
- No sign-up
Question 2: Economics
Industry 1 has four firms selling identical crude petroleum behind high entry barriers; Industry 2 has three firms selling differentiated branded cereals behind high entry barriers. Their most accurate classification is that:
- A. both industries are oligopolies, because each has a small number of interdependent firms protected by high entry barriers.
- B. only the crude petroleum industry is an oligopoly, because oligopoly requires firms to sell a homogeneous product.
- C. only the branded cereal industry is an oligopoly, because product differentiation is what distinguishes oligopoly from other market structures.
Question 3: Corporate Finance
A firm has already incurred USD 120,000 for a completed consumer taste study. A proposed product line would reduce sales of an existing product and lower the firm's shared-distribution costs. Which items should be reflected in the proposed project's incremental cash flow forecast?
- A. The cost of the completed taste study and the lower distribution costs, but not the reduced sales of the existing product.
- B. The cost of the completed taste study and the reduced sales of the existing product, but not the lower distribution costs.
- C. The reduced sales of the existing product and the lower distribution costs, but not the cost of the completed taste study.
Question 4: Financial Statement Analysis
A company issues long-term notes and uses the entire proceeds to repurchase common shares, with no other transactions and total shareholders' equity remaining positive. The company's debt-to-equity ratio most likely:
- A. increases.
- B. decreases.
- C. remains unchanged.
Question 5: Equities
Compared with discounting forecast cash flows, valuing a company by applying the median P/E of its peers to its EPS most likely:
- A. requires no explicit estimate of the required rate of return.
- B. requires an explicit estimate of the required rate of return rather than cash flow forecasts.
- C. involves no implicit assumptions about the company's growth and risk.
Question 6: Fixed Income
A bond covenant keeps the bondholders from ranking behind new lenders by prohibiting the issuer from using its assets as collateral for future borrowing. The covenant is most likely a:
- A. restriction on additional debt.
- B. pari passu clause.
- C. negative pledge clause.
Question 7: Derivatives
An option and a portfolio of other assets will have identical payoffs one year from now in every possible scenario. The law of one price most likely:
- A. does not apply to the option, because an option's payoff profile is asymmetric.
- B. requires the option and the portfolio to have the same value today.
- C. applies only to positions holding the same assets, so the option and the portfolio can differ in value today.
Question 8: Alternative Investments
An investor acquires a stake in an operating container terminal and finances the construction of additional berths at the terminal. The investment is most likely classified as:
- A. brownfield.
- B. greenfield.
- C. secondary-stage.
Question 9: Portfolio Construction
A stock's market price exceeds an analyst's estimate of its value. Plotted against the security market line (SML), her estimate of the stock's expected return at that price most likely lies:
- A. above the SML, because it is higher than the stock's CAPM required return.
- B. below the SML, because it is lower than the stock's CAPM required return.
- C. on the SML, because the CAPM places every security on the line in equilibrium.
Question 10: Ethical and Professional Standards
Divya Menon, CFA, a portfolio manager at an investment advisory firm, learns that a colleague, Lucia Paredes, CFA, has been trading in client accounts without obtaining the clients' written approval, which a local securities regulation requires. Menon raises the practice with the compliance department, which ends it. Local law does not require Menon to report the practice outside the firm, and she makes no report to the securities regulator or to CFA Institute. Has Menon violated the CFA Institute Standards of Professional Conduct?
- A. No
- B. Yes, by not reporting Paredes to the securities regulator
- C. Yes, by not reporting Paredes to CFA Institute
Question 1
Quantitative MethodsA US investor holds a euro-denominated bond that returned 6.0% in euros over the year. Over the same period, the euro depreciated 3.0% against the US dollar. The investor's return in US dollars is closest to:
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What is a CFA Level 1 mock exam?
A mock exam is a rehearsal for exam day: a full set of mixed-topic questions taken under a time limit. It lets you check how well you can apply what you have learned while managing the pace of a whole session.
The 10 sample questions above are an untimed introduction, with one question from each topic and explanations to review when you finish or as you go. A full mock tests a wider range of material over complete timed sessions.
The CFA Level 1 exam at a glance
- Questions
- 180 multiple-choice questions
- Sessions
- 2 × 135 minutes
- Answer choices
- A, B or C — one correct answer
- Average pace
- About 90 seconds per question
Level 1 covers 10 topics, from Ethics and Quantitative Methods to Portfolio Construction. Their exam weights differ; the short practice above gives each topic one question. The real exam gives all questions equal weight and has no penalty for an incorrect answer.
For exam windows, fees and preparation, read our 2027 CFA Level I exam guide.
Ready for the full mock?
The full mock covers more material, adds timed sessions and saves your progress in the Quizara App.
| What to expect | Here on this page | Full mock in the App |
|---|---|---|
| Coverage | 10 questions · one per topic | 180 questions across all 10 topics |
| Timing | Untimed | 2 timed sessions |
| Explanations | At the end, or after each answer if you choose | Review after submitting the mock |
| Saved progress | This browser | Your Quizara account |
| Access | Free · no sign-up | 14-day free trial · no card |
After the mock, revisit your saved answers and ask AI to explain a question you want to understand better. Use that review to choose what to practise next.
Take the full 180-question mockThe trial includes this mock and Quantitative Methods. Premium includes all 10 topics and 5 full mocks. See access and pricing.
CFA Level 1 mock exam FAQs
Do I need an account to start?
The short practice test and all answer explanations are free without registration. Review answers when you finish, or turn on Show answers as I go for feedback after each question.
Are these official CFA Institute questions?
These are Quizara's own reviewed questions. Quizara is an independent study resource and is not affiliated with or endorsed by CFA Institute.
Does this practice result predict whether I will pass?
No. One question per topic is an initial signal. It cannot predict whether you will pass. Use the missed topics and their exam weights to choose what to review next.
Why does the full mock require an account?
The App saves your answers, timing and progress to your account, so you can return to the mock and review explanations after submitting. You can also ask AI about a question. Create a free account; your 14-day trial starts automatically, with Mock Exam 1 ready to start. No card required.
Sources
Official exam format and preparation guidance: CFA Institute’s Level I exam guide · CFA Institute’s practice questions and mock exams.
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