Topic 2 of 10 • CFA Level 1

Quantitative Methods

Statistics, probability, and quantitative analysis

11
Subtopics
38
Learning Outcomes
6-9%
Exam Weight

Topic Overview

Quantitative Methods is one of the 10 major topic areas in the CFA Level 1 curriculum, representing approximately 6-9% of the exam. This topic area covers 11 key subtopics that form the foundation of quantitative methods knowledge required for investment professionals.

Understanding quantitative methods is essential for CFA candidates as it provides the fundamental concepts needed to analyze financial markets and make informed investment decisions. This topic area includes 38 specific learning outcomes that candidates must master for the exam.

Subtopics in Quantitative Methods

1

Rates and Returns

5 learning outcomes

2

Time Value of Money in Finance

3 learning outcomes

3

Statistical Measures of Asset Returns

4 learning outcomes

4

Probability Trees and Conditional Expectations

3 learning outcomes

5

Portfolio Mathematics

3 learning outcomes

6

Simulation Methods

3 learning outcomes

7

Estimation and Inference

3 learning outcomes

8

Hypothesis Testing

3 learning outcomes

9

Parametric and Non-Parametric Tests of Independence

2 learning outcomes

10

Simple Linear Regression

6 learning outcomes

11

Introduction to Big Data Techniques

3 learning outcomes

Study Tips for Quantitative Methods

Recommended Approach

  • • Start with understanding key concepts before memorizing formulas
  • • Practice calculations with real-world examples
  • • Review learning outcomes to ensure complete coverage
  • • Take topic-specific practice quizzes regularly

Key Focus Areas

  • • Understand how this topic connects to other CFA areas
  • • Focus on high-weight subtopics for maximum impact
  • • Review past exam questions for this topic
  • • Create summary notes for quick revision

Ready to Master Quantitative Methods?

Practice with our comprehensive question bank featuring questions on all 11 subtopics and 38 learning outcomes.

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Economics

Other CFA Level 1 Topics

Ethical and Professional Standards
15-20%
Economics
6-9%
Financial Statement Analysis
11-14%
Corporate Issuers
6-9%
Equity Investments
11-14%
Fixed Income
11-14%
Derivatives
5-8%
Alternative Investments
7-10%
Portfolio Management
8-12%