How to Study for CFA Level III
The Level III exam is the final exam in the CFA curriculum. CFA candidates can expect over 340 hours of study, so falling back into the healthy habits from Level I and Level II preparation is essential. How to study for the CFA Level III exam is just as important since the format has changed once again.
How to Study for CFA Level III Quick Facts
- The most recent pass rates for the CFA Level III exam are around 39%.
- The Level III exam format consists of a combination of item set questions and structured response questions.
- Constructed response will be new to CFA candidates and makes up 50% of the exam.
- The most heavily weighted topic areas on the Level III exam are Portfolio Management and Wealth Planning.
Plan Your Study for CFA Level III
How Much to Study for CFA Exam Level III
The last exam in the CFA Program requires the most study time. Successful candidates report studying for over 340 hours to prepare for exam day, an amount that works out to over 13 hours per week if you begin exam prep six months before the actual exam.
How to Study Reading Material for CFA Level III
There are seven topics on the Level III exam, with Portfolio Management and Wealth Planning at the top of the list with 35-40% of the weight of the entire exam.
This makes it an obvious priority during your study sessions. Fixed Income Investments is next on the priority list, followed by Equity Investments and Ethical and Professional Standards. Derivatives, Economics, and Alternative Investments round out the Level III topics.
Apply Level III CFA Exam Concepts to Real Life
Study groups are a great way to interact with other CFA candidates that are on the same path, learn together, and offer and receive feedback. Groups can also help with motivation and discipline and help you absorb material better than when you study by yourself. Check out Wiley’s Study Groups page to connect with other CFA candidates.
Increase your study preparation with our CFA Level III Study Guide.
Studying for CFA Level III Structured Response
As you study, practice brief answers that contain a few ideas that help show you understand the concept. Be careful not to write too much, as you’ll get credit for accuracy over length. You’re even allowed to use bullet points and graders aren’t concerned with grammatical errors.
How to Practice Taking the CFA Level III Exam
In addition to more vignette-style multiple-choice question prep, similar to how you studied at Level II, how you practice for the constructed response questions is crucial. Start by going through all the readings and then take on the practice questions under timed constraints.
Timed practice papers are a great next step as you learn time management as well as how to respond to the exam without knowing exactly how you’ll be tested on the actual exam. This is another great opportunity to join a study group to help you work out your approach to the unique format of the Level III exam.
Practice today with our CFA Level III Test Bank.
How to Pace Yourself for CFA Level III Exam
Time management and your overall pace are once again incredibly important elements as you study for the CFA Level III exam. With half of the exam, you can employ an approach similar to Level II, giving yourself a set time per question as you navigate each vignette. Shoot for a slightly faster time during your study sessions to help hone your skills.
During the constructed response part of the exam, you can skim through everything to get an overview of where you might get tripped up or spend more time than you should.
One method is to give yourself 30-40 seconds to scan a question and decide if you want to engage it immediately or move on and come back later.
Practice your scanning skills with our CFA Level III Test Bank.
How to Study CFA Level III – Frequently Asked Questions (FAQs)
- CFA Institute reports that it will take around 340 hours spread across at least six months to prepare for the CFA Level III exam.
- We don’t recommend only spending three months of study on the CFA Level III exam. However, some candidates have been able to succeed in this short amount of time.
- The CFA Level III exam is considered by many to be the hardest exam in the CFA Program.
- The CFA Level III exam consists of a mixture of item set questions and structured response questions.
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