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CAIA September 2026 Last Week Revision: Formula Guide and What to Focus On Before the Exam
The CAIA September 2026 exam window for Level 1 runs from August 31 to September 11, 2026, according to the official CAIA Association registration calendar. If you are in your final week of preparation, the structure of how you spend these last few days will have a direct impact on your performance. This blog covers what to focus on, which formulas to lock in, and how to approach the final stretch of your CAIA September 2026 revision last week.
Know the Exam Format Before You Walk In
Before diving into revision priorities, having the exam format clearly in mind helps you allocate your remaining time correctly.
For CAIA Level 1, the exam consists of 200 multiple choice questions across two sections of 100 questions each, with a total of 4 hours to complete the paper and an optional 30-minute break between sections. The recommended study hours from the CAIA Association are 250 to 300 hours.
For CAIA Level 2, the format is more demanding. The exam consists of 100 multiple choice questions worth 70% of the total score and three sets of constructed-response questions worth 30%. You have two hours for the multiple choice section and two hours for the constructed-response section with an optional 30-minute break between them. This means your final week revision for Level 2 must include specific practice on written answer construction, not just multiple choice questions.
CAIA Level 1: Topic Areas to Prioritise in Your Final Week
According to the official CAIA Association, the Level 1 curriculum for the September 2026 exam covers CAIA Ethical Principles, Introduction to Alternative Investments, Real Assets, Private Equity, Private Debt, Hedge Funds, Digital Assets, and Funds of Funds.
| Topic Area | Final Week Priority | Reason |
| Introduction to Alternative Investments | High | Foundation for all other topics, tested across both sections |
| Private Equity | High | Calculations and conceptual understanding both tested |
| Hedge Funds | High | Strategy knowledge and risk metrics tested heavily |
| Ethics | High | Tested across both sections, consistent marks available |
| Real Assets | Medium | Conceptual understanding is sufficient at Level 1 |
| Private Debt | Medium | Key structures and risk characteristics to know |
| Digital Assets | Medium | Updated 2026 curriculum gives this area more weight |
| Funds of Funds | Lower | Lighter treatment is sufficient |
Key Formulas to Lock In Before Exam Day
The CAIA Level 1 exam is not as formula-intensive as the CFA, but certain calculations and metrics come up consistently and should be memorised before exam day.
Risk-Adjusted Performance Metrics
| Formula | What It Measures |
| Sharpe Ratio = (Return minus Risk-Free Rate) / Standard Deviation | Return per unit of total risk |
| Sortino Ratio = (Return minus Minimum Acceptable Return) / Downside Deviation | Return per unit of downside risk only |
| Treynor Ratio = (Return minus Risk-Free Rate) / Beta | Return per unit of systematic risk |
| Information Ratio = Active Return / Tracking Error | Consistency of active returns vs benchmark |
| Calmar Ratio = Annualised Return / Maximum Drawdown | Return relative to worst historical loss |
Private Equity Performance Multiples
| Multiple | Formula |
| TVPI (Total Value to Paid-In) | (Residual Value + Distributed Value) / Paid-In Capital |
| DPI (Distributions to Paid-In) | Distributed Value / Paid-In Capital |
| RVPI (Residual Value to Paid-In) | Residual Value / Paid-In Capital |
Real Assets
| Formula | What It Calculates |
| Cap Rate | Net Operating Income / Property Value |
| NOI | Gross Rental Income minus Operating Expenses |
Hedge Fund Mechanics
Make sure you understand the high-water mark and how it prevents investors from paying performance fees twice on the same gains, the hurdle rate and how it sets the return threshold before performance fees apply, lock-up periods and what they mean for investor liquidity, and the standard 2 and 20 fee structure (2% management fee and 20% performance fee above the hurdle).
For a look at how the 2026 CAIA curriculum has been updated and which areas have changed, Alternative Investments in 2026: What’s Changing in the CAIA Curriculum gives you the full picture of what is new.
CAIA Level 2: Final Week Priorities
If you are sitting Level 2, the final week priorities shift toward portfolio management, risk management, and constructed-response practice.
The most common mistake Level 2 candidates make is preparing almost entirely through multiple choice practice and then finding the constructed-response format unfamiliar on exam day. The written section rewards structured, concise answers that directly address what is asked rather than broad knowledge dumps. Practice writing structured answers under timed conditions at least twice in your final week. Two hours for three constructed-response question sets is a tight window and pacing it correctly requires prior practice.
Focus your Level 2 final week on portfolio construction with alternatives, due diligence and manager selection frameworks, risk management approaches specific to alternative asset classes, and Ethics which is tested across both sections of the exam.
For a detailed breakdown of the full Level 2 syllabus and format, CAIA Level 2 Syllabus, Format and How to Prepare for It in 2026 covers everything in one place.
Your Final 7 Days Schedule
| Day | Focus |
| Day 1 | Private Equity formulas, multiples and concepts |
| Day 2 | Hedge Funds, strategies, risk metrics and fee structures |
| Day 3 | Real Assets, Private Debt and Digital Assets review |
| Day 4 | Ethics scenario practice only, no re-reading |
| Day 5 | Full mock exam under timed conditions |
| Day 6 | Review mock errors and light formula revision |
| Day 7 | Rest, confirm exam logistics and location |
Pass Rates: What They Tell You About the Exam
According to data published by the CAIA Association, the March 2026 CAIA exam pass rates were 45% for Level 1 and 64% for Level 2. A 45% pass rate at Level 1 means more than half of all candidates who sit do not pass. The exam is more demanding than its single-level format suggests and candidates who underestimate it or underprepare consistently fall into the failing half.
For preparation strategies that have helped candidates pass Level 1 consistently, How to Pass CAIA Level I Exam and CAIA Exam Strategy: Smart Ways to Balance Work and Study Before 2026 Exams give you both the strategic and practical dimensions.
Enrolling in CAIA Certification in India coaching at Fintelligents gives you faculty-guided preparation, mock exams, and study material aligned to the current 2026 CAIA curriculum for both levels.
Conclusion
Your CAIA September 2026 last week revision should be structured, formula-focused, and exam-technique-driven. Lock in the key risk-adjusted performance metrics, the Private Equity multiples, and the Hedge Fund fee mechanics. Do one full mock under timed conditions. If you are sitting Level 2, practice the constructed-response format under time pressure at least twice. Save day seven for rest and exam logistics. The candidates who perform best on exam day are not those who studied the longest in the final week. They are the ones who went in with clear formulas, a calm mindset, and a well-practised sense of how to manage their time across the full exam.
Frequently Asked Questions (FAQs)
Q. What are the most important topics to revise in the final week before CAIA September 2026?
For Level 1, prioritise Ethics, Private Equity, Hedge Funds, and Introduction to Alternative Investments. For Level 2, focus on portfolio construction, risk management frameworks, due diligence and manager selection, and constructed-response practice. These areas carry the most exam weight and come up most consistently according to the CAIA Association curriculum.
Q. What formulas should I know before the CAIA September 2026 exam?
The most important formulas are the Sharpe, Sortino, Treynor, Calmar, and Information Ratios for risk-adjusted performance measurement, the Private Equity multiples TVPI, DPI, and RVPI, and the Cap Rate and NOI formulas for real assets. Understanding the Hedge Fund fee structure including the high-water mark and hurdle rate mechanics is also essential.
Q. What is the CAIA Level 1 pass rate?
According to the CAIA Association, the March 2026 CAIA Level 1 pass rate was 45%. Historical average pass rates since 2021 have been approximately 48% for Level 1 and 60% for Level 2.
