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 latest iteration of the Level I curriculum introduces Candidates to alternative asset classes, discusses potential benefits of allocating to actively managed investment strategies while also featuring new and extended topics that better reflect the role of private capital in today’s institutional portfolios. 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 latest iteration of the Level II curriculum builds on Candidates’ understanding of various asset classes with a focus on asset allocation in a multi-asset framework and various methods for accessing alternative asset classes. Additionally, Level II will include content about the broadening investor base for alternative investments and the tools now available for allocators. 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, Regulation, and ESG, models, institutional asset owners and investment policies, risk and risk management, methods for alternative investing, accessing alternative investments, due diligence and selecting strategies, volatility and complex strategies, current and integrated topics.