Free CFA Level I Quantitative Methods Practice Questions
Quantitative methods on the CFA Level I exam cover time value of money, statistical concepts, probability distributions, sampling, hypothesis testing, and regression basics. This topic is weighted 6-9% of the exam (CFA Institute).
145 questions7 easy48 medium90 hard2026 syllabus
Sample Questions
Question 1
Easy
In machine learning, overfitting most likely occurs when:
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Correct Answer: B
Solution
B is correct.
Overfitting occurs when a model is too complex relative to the amount of training data, causing it to learn patterns specific to the training set (including random noise) rather than the true underlying relationship. This results in high accuracy on training data but poor generalization to new data.
Question 2
Medium
In hypothesis testing, a Type I error occurs when:
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Correct Answer: B
Solution
B is correct.
A Type I error is the rejection of a true null hypothesis. The probability of committing a Type I error is equal to the significance level (alpha) of the test.
Question 3
Hard
The excess kurtosis of a normal distribution is:
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Correct Answer: B
Solution
B is correct.
A normal distribution has a kurtosis of 3. Excess kurtosis is defined as kurtosis minus 3, so for a normal distribution, excess kurtosis = 3 - 3 = 0. A distribution with excess kurtosis greater than 0 is leptokurtic (fatter tails), while one with excess kurtosis less than 0 is platykurtic (thinner tails).
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