10. Alternative Investments

What is it all about?

Alternative Investments is the smallest topic area at level 1, and this year it makes up just about 2.2% of the total curriculum. The guideline exam weight provided by the CFA institute is 4%, so here is another place where you should be able to score some “cheap” points.

The reading

Alternative Investments. Study Session 10

Source: Financial Exam Academy (Based on the CFA® level 1 curriculum – June 2015 Exam)

The topic is organized as one short study session made up of a single reading with an introduction to alternative investments. The reading introduces various alternative investments including real estate, private equity, hedge funds etc. and should really just be seen as a primer before diving into more detail at level 2 and 3.

Where to focus your attention?

Alternative Investments. Fraction of total

Source: Financial Exam Academy (Based on the CFA® level 1 curriculum – June 2015 Exam)

The is not much value-add from analyzing the structure of this topic area given how short it is. But you should definitely make sure that you cover this reading in depth, as it could potentially provide some of the easiest points for the test.

If you would like an explanation about how the guideline exam weights per reading are calculated it is described under the Ethics topic area.

Please reach out at info@financialexamacademy.com if you are feeling stuck in Alternative Investments and/or if you have got a specific questions about anything else related to your studies.

That’s it folks. If you haven’t already, head on over to our 20 week study plan for more specific guidance on how to prepare for the test.

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