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April 9, 2026
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How difficult is the CAIA® exam? Slightly more than half of those who take the exam pass it, which is a better average than the CFA® Program exam and the FRM exam. However, taking both levels of the exam isn’t exactly a walk in the park.
Pass rates have been declining since the exam was first offered, and only 40% of those who register for the exam end up passing both levels. This article will help you understand the challenge the exam presents and how to improve your odds of success.
The Level I CAIA exam consists of 200 multiple-choice questions. The exam length is four hours. There are 100 questions in the first two hours, followed by a break, and then 100 more questions in the last two hours.
The Level II CAIA exam consists of 100 multiple-choice questions, which make up 70% of the exam weight. The remaining 30% consists of three sets of constructed-response (essay) questions. These questions test your practical application of the knowledge you’ve gained to realistic scenarios.
To learn more about each level of the exam, check out our FAQ for Level I and FAQ for Level II.
The pass rate for the Level I March 2025 CAIA exam was 48%. CAIA pass rates have been on a steady decline for the past decade. More candidates are taking the exam than previously, which is one reason the pass rate is declining, but the other is that the exam is becoming more challenging.
The topics covered by both levels of the CAIA exam can change from year to year because the world of alternative investments is fluid.
CAIA Level I Topic | Exam Weight |
CAIA Ethical Principles | 8–12% |
Introduction to Alternative Investments | 20-28% |
Real Assets | 14-20% |
Private Equity | 8-12% |
Private Debt | 12–16% |
Hedge Funds | 15–19% |
Digital Assets | 4–8% |
Funds of Funds | 1–5% |
The Level I exam is computerized, and questions are served up in topic batches, although you won’t get all questions on one topic at once. Now that you know the format, you can see that you aren’t likely to pass the exam if you don’t pass the topics with weights over 15%.
Based on this table, the topics you really want to get right are Professional Standards and Ethics and Introduction to Alternative Investments.
Level II is also computerized and a certain percentage is solely dedicated to the constructed response questions. Level II is truly designed to assess how well you apply your knowledge to real-life situations; therefore, the topics are fairly evenly weighted. So it is essential you have a firm grasp on all the topics to be successful.
CAIA Level II Topic | Multiple Choice Weight | Constructed Response Weight |
Professional Standards and Ethics | 0% | 10% |
Institutional Asset Owners | 8–12% | 0–10% |
Asset Allocation | 8–12% | 0–10% |
Risk and Risk Management | 8–12% | 0–10% |
Methods and Models | 12–15% | 0–10% |
Accessing Alternative Investments | 8–12% | 0–10% |
Due Diligence and Selecting Strategies | 8–12% | 0–10% |
Volatility and Complex Strategies | 8–12% | 0–10% |
Universal Investment Considerations | 6–11% | 0–10% |
Emerging Topics | 0% | 10% |
The CAIA exam requires a significant investment of time to be successful. But most of the time, failing a level of the exam is the result of study mistakes and insufficient prep. These tips will help you develop the knowledge and confidence necessary to pass Level I and Level II of the CAIA exam:
CAIA Association says candidates should study at least 250–300 hours for each exam, or 500–600 hours total. Don’t take this suggestion lightly. You have a lot of material to cover. Starting early will help ensure you leave yourself enough time to master it.
Candidates who do not manage to dedicate enough time to prepare for the exam might be tempted to resort to cramming. Time and time again, it’s been proven that the best last-minute exam prep activities are light review and a good night’s sleep. Cramming is not in the recipe for CAIA exam success.
A well-thought-out study plan is essential. The study plan should serve as a map for going through the entire curriculum and should incorporate classes, study notes, practice questions, mock exams, and final reviews to reinforce the learning process.
Memorizing vocabulary and concepts will not be enough to pass both levels of the CAIA exam. Both test your ability to apply what you know to situations you are likely to encounter when serving clients. So keep that in mind and try to think about how you might use the concepts you’re learning about.
There is no better way to build your confidence ahead of the CAIA exam than by doing practice questions. Practicing what you have learned is essential for retaining and assessing knowledge, as well as being comfortable answering the kinds of questions you’ll encounter on exam day. Practice also helps you truly assess your comprehension of critical concepts and identify and address weaknesses.
If you’ve decided the CAIA exam is something you want to take on, check out our CAIA study materials for all learning styles now.
Free eBook: Before You Decide to Sit for the CAIA Exam
Seek expert guidance from CAIA Charterholders to ensure exam success.
Free eBook: CAIA Fundamentals
Explore detailed breakdowns of CAIA Program curriculum topics.
CAIAA does not endorse, promote, review or warrant the accuracy of the products or services offered by Kaplan Schweser, nor does it endorse any pass rates claimed by the provider. CAIAA is not responsible for any fees or costs paid by the user to Kaplan Schweser, nor is it responsible for any fees or costs of any person or entity providing any services to Kaplan Schweser. CAIA®, CAIA Association®, Chartered Alternative Investment AnalystSM, Chartered Alternative Investment Analyst Association®, FDP®, FDPI®, and Financial Data Professional Institute® are service marks and trademarks owned by CHARTERED ALTERNATIVE INVESTMENT ANALYST ASSOCIATION, INC., a Massachusetts nonprofit corporation with its principal place of business at Amherst, Massachusetts, and are used by permission. Kaplan Schweser's exam preparation products are not available to residents of countries or regions subject to technology or economic and/or trade sanctions by the Office of Foreign Assets (OFAC) or other authorities including Cuba, Iran, North Korea, Syria, or Ukraine (Crimea Region).
