Part I is a four-hour, 100-question exam with no formula sheet, so the formulas and when to use them have to be known by heart. In November 2025, 47% of Part I candidates passed.
Questions
100, equally weighted
Time
4 hours
Format
Multiple choice, computer-based
2027 windows
May, August and November
Pass rate, November 2025
47%
What makes it hard
No formula sheet: GARP says candidates need to know the important formulas and how to apply them.
Pace: 100 questions in 240 minutes is 144 seconds a question, with the calculation included.
Breadth: four topic areas, from governance and the CAPM to regression, derivatives pricing, VaR, duration and credit loss.
Math level: GARP puts it at an advanced undergraduate or introductory graduate finance course.
What makes it easier
Every question counts the same, so a quick concept question is worth as much as a long calculation. The exam is multiple choice, and most calculations are one or two formulas applied with care: the conventions in the stem (compounding, horizon, units) decide which one.
How long people study
In GARP's survey of May 2015 candidates, the average was about 240 hours of preparation. 10% studied under 100 hours and 14% over 400.
Try 4 questions
Question 1Binomial trees
A stock priced at $50 moves up by a factor of 1.2 or down by a factor of 0.8 in each of two one-year steps. The risk-free rate is 4% a year with annual compounding. The value of a two-year American put with a strike price of $52 is closest to:
Question 2Volatility and correlation: EWMA and GARCH
A GARCH(1,1) model has omega = 0.000003, alpha = 0.10 and beta = 0.85. Yesterday's volatility estimate was 1.2% a day and yesterday's return was 2.0%. Today's daily volatility estimate is closest to:
Question 3Option markets, payoffs and put-call parity
A stock trades at $72 and will pay a $1.00 dividend in two months. A six-month European put with a strike price of $70 costs $3.10. The risk-free rate is 5% per annum with continuous compounding. The price of a six-month European call with the same strike is closest to:
Question 4Duration, DV01 and convexity
A three-year bond pays a 10% annual coupon and yields 10% with annual compounding, so it trades at par. Its Macaulay duration is closest to:
Hard enough that 53% of candidates did not pass in November 2025. The difficulty is mostly breadth and pace: 100 questions across four topic areas in four hours, with no formula sheet.
How many hours should I study for Part I?
GARP's survey of May 2015 candidates found about 240 hours on average, with 10% under 100 hours and 14% over 400.
How much math is on Part I?
GARP says the math is at the level of an advanced undergraduate or introductory graduate finance course: statistics, regression, discounting, and derivative and bond pricing.