What areas are covered in the exams, and what is the exam structure?
The Level I exam is composed of 200 multiple-choice questions, which measure Candidates’ knowledge of the CAIA Level I curriculum. The Level I curriculum introduces Candidates to alternative asset classes and discusses potential benefits of allocating to actively managed investment strategies. Candidates are asked to distinguish among various alternative investment strategies and products and to understand the difference between alternative investments and traditional products. Specific knowledge areas include: professional standards and ethics, introduction to alternative investments, real assets, hedge funds, private equity, and structured products.
The Level II exam is composed of 100 multiple-choice questions and three sets of constructed-response (essay-type) questions, which measure Candidates’ knowledge of the CAIA Level II curriculum. The Level II curriculum builds on Candidates’ understanding of various asset classes and focuses on asset allocation in a multi-asset framework, and various methods for accessing alternative asset classes. Through the Level II curriculum, candidates gain deeper understanding of risk management techniques and tools as well as various structured products. Specific knowledge areas include: ethics regulations and ESG, accessing alternative investments, models, methods for alternative investing, institutional asset owners and investment policies, methods for alternative investing, due diligence & selecting managers, risk and risk management, volatility and complex strategies.