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200+ Free CAIA Level I Practice Questions

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48-60% Pass Rate
200+ Questions
100% Free

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Questions by Category

Caia-Intro-Alts50 questions
Caia-Hedge-Funds35 questions
Caia-Real-Assets30 questions
Caia-Private-Debt25 questions
Caia-Ethical-Principles20 questions
Caia-Private-Equity20 questions
Caia-Digital-Assets15 questions
Caia-Funds-Of-Funds5 questions
2026 Statistics

Key Facts: CAIA Level I Exam

~70%

Passing Score Required

~140/200 correct

200

Exam Questions

2 sessions of 100

48-60%

Historical Pass Rate

CAIA Association

$995-$1,395

Exam Fee

Plus $400 enrollment

200+

Study Hours

Recommended prep time

100+

Countries

Global exam centers

CAIA Level I exam consists of 200 multiple-choice questions administered in two 2-hour sessions at Pearson VUE centers. The pass rate historically ranges from 48-60%. Candidates need approximately 200 hours of study time over 3-6 months. The 2026 curriculum emphasizes CAIA Ethical Principles (replacing CFA Code), with increased coverage of real assets, private equity, hedge funds, and new digital assets content.

About the CAIA Level I Exam

CAIA Level I is the first level of the Chartered Alternative Investment Analyst program, the global professional designation for alternative investment expertise. The exam covers the foundations of alternative investments including professional standards, characteristics of major alternative asset classes (real assets, private equity, private debt, hedge funds, digital assets), and fund structures. It establishes the core knowledge needed for professionals in portfolio management, investment analysis, and alternative investment advising.

Questions

200 scored questions

Time Limit

4 hours (2 × 2-hour sessions)

Passing Score

~70%

Exam Fee

$995-$1,395 (CAIA Association / Pearson VUE)

CAIA Level I Exam Content Outline

8-12%

CAIA Ethical Principles

CAIA Code of Professional Conduct, fiduciary responsibilities, conflicts of interest, duty of loyalty, suitability obligations, material nonpublic information, fair dealing, compensation disclosure, professional misconduct

20-28%

Introduction to Alternative Investments

Alternative investment characteristics, risk-return profiles, illiquidity premium, performance measurement (IRR, MOIC, TVPI, DPI), benchmark selection, fund structures (LP/GP), waterfall distributions, carried interest, J-curve effect, due diligence framework

14-20%

Real Assets

Real estate (core, value-add, opportunistic), REITs, infrastructure (economic/social, brownfield/greenfield), natural resources (timber, agriculture), commodities (contango, backwardation), direct vs. indirect ownership, cap rates, NOI

8-12%

Private Equity

Venture capital (seed, early, late stage), growth equity, buyouts (LBOs), PE fund lifecycle (fundraising, investment, harvest), valuation methodologies (DCF, comparables), deal structures, add-ons, platform companies

12-16%

Private Debt

Direct lending, mezzanine financing, distressed debt, venture debt, unitranche loans, second lien, payment-in-kind (PIK), covenant analysis, credit risk assessment, private debt vs. traditional fixed income

15-19%

Hedge Funds

Hedge fund strategies (global macro, event-driven, equity hedge, relative value), short selling, leverage, prime brokerage, lock-ups, gates, high-water marks, risk management (VaR, stress testing), fund of funds

4-8%

Digital Assets

Blockchain technology, cryptocurrencies, tokenization of assets, DeFi protocols, crypto allocation in portfolios, custody solutions, regulatory considerations, mining, proof of work vs. proof of stake

1-5%

Funds of Funds

Multi-manager structures, diversification benefits, due diligence layering, fee on fee, style drift monitoring, seeding/early-stage programs, secondary interests

How to Pass the CAIA Level I Exam

What You Need to Know

  • Passing score: ~70%
  • Exam length: 200 questions
  • Time limit: 4 hours (2 × 2-hour sessions)
  • Exam fee: $995-$1,395

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

CAIA Level I Study Tips from Top Performers

1Master performance metrics: IRR, MOIC, TVPI, DPI, and their relationships — these appear frequently
2Understand the J-curve effect and why private fund returns appear negative in early years
3Study the new CAIA Ethical Principles carefully — they differ from CFA Code of Ethics
4Know the key characteristics that differentiate hedge fund strategies (macro, event-driven, equity hedge, relative value)
5Learn cap rate calculations and how NOI drives real estate valuation
6Understand LBO value creation sources: EBITDA growth, multiple expansion, and debt paydown
7Focus on blockchain fundamentals and how tokenization differs from traditional securities
8Practice waterfall distribution calculations including hurdle rates and catch-ups
9Memorize the illiquidity premium concept and why alternatives command higher expected returns
10Study commodity terminology: contango vs. backwardation, roll yield, convenience yield

Frequently Asked Questions

What is the CAIA Level I exam pass rate?

The CAIA Level I pass rate historically ranges from 48-60%, making it one of the more challenging finance certifications. Success requires thorough understanding of alternative investments across all asset classes. Pass rates tend to be higher for candidates with CFA backgrounds or professional experience in alternatives, and for those who complete the CAIA Association's official study materials.

How many questions are on the CAIA Level I exam?

The exam contains 200 multiple-choice questions administered in two 2-hour sessions (100 questions per session) with an optional break between. Questions test recall, application, and analysis across all 8 curriculum domains. The exam is computer-based and administered at Pearson VUE testing centers worldwide.

How long should I study for CAIA Level I?

CAIA Association recommends 200+ hours of study time over 3-6 months. Most successful candidates study 15-20 hours per week for 3 months. Background matters: CFA charterholders may need 150-180 hours, while those new to alternatives may need 250+ hours. The 2026 curriculum changes require additional attention to the new CAIA Ethical Principles section.

What changed in the 2026 CAIA Level I curriculum?

Key 2026 changes include: (1) Ethics reduced from 15-25% to 8-12% with new proprietary CAIA Ethical Principles replacing CFA Code content, (2) Real Assets increased to 14-20%, (3) Private Equity increased to 8-12%, (4) Hedge Funds increased to 15-19%, and (5) new 'Allocating to Cryptocurrencies' reading added to Digital Assets. The curriculum now better reflects current alternative investment practices.

What is the hardest topic on CAIA Level I?

Many candidates find Hedge Funds (15-19%) challenging due to the variety of complex strategies (convertible arbitrage, merger arbitrage, fixed income relative value). Private Debt can also be difficult for those without credit experience. The new CAIA Ethical Principles section requires careful study as it differs from CFA standards many candidates may know. Introduction to Alternative Investments covers many quantitative performance metrics that require practice.

Is CAIA worth it if I already have my CFA?

Yes, CAIA is highly complementary to the CFA charter. While CFA covers alternatives in limited scope, CAIA provides deep expertise specifically in alternatives. Many CFA charterholders pursue CAIA to specialize in portfolio management roles focused on alternatives, to advise on private wealth alternatives allocation, or to transition into private equity, hedge funds, or real asset investing. CAIA charterholders are highly sought after by pension funds, endowments, and family offices.