Yes, the CFA Level 1 exam is multiple-choice only. The exam consists of 240 multiple-choice questions divided into two 3-hour sessions.
Key Points:
- Each question has four answer choices.
- You must select the best answer from the choices provided.
- There is no penalty for guessing.
- You are not allowed to use any calculators or other electronic devices during the exam.
- The exam is administered in a proctored environment.
Example:
Here is an example of a CFA Level 1 multiple-choice question:
Question:
Which of the following is NOT a characteristic of a perfectly competitive market?
- A. Many buyers and sellers
- B. Homogeneous products
- C. Perfect information
- D. Barriers to entry
Answer:
The correct answer is D. Barriers to entry. A perfectly competitive market has no barriers to entry, meaning that firms can easily enter and exit the market.
