GMAT™ Exam
Select test center appointment | Scores valid for 5 Years | Multiple Attempts | Round 1 Applications Closing Soon
Institute of Chartered Financial Analyst has prescribed the syllabus for CFA exam level 3. Aspirants can access the CFA level 3 syllabus 2024 from the official website - cfainstitute.org. Candidates eligible to appear in CFA level 3 exam are advised to go through the exam pattern, important topics and the weight given to each topic.
Also Check: CFA Level 1, 2 & 3 Registration Open - Apply Now
Latest: CFA complete guide
The CFA Level 3 exam is conducted twice a year, in the months of February and August. It is the final level in the CFA exam and some of the subjects present in the earlier levels are absent from the CFA Level 3 syllabus due to zero weight. Read the full article to know more about the CFA Level III syllabus, pattern, topics and more.
The CFA institute officially prescribes the CFA level 3 exam pattern such as exam duration, type of questions asked, exam language, and marking scheme. The CFA level III exam consists of item sets consisting of vignettes with accompanying multiple-choice items and constructed response (essay) questions.
Particulars | Details |
Medium of exam | English |
type of questions | Vignette-supported
|
Duration of exam | 4 hours and 24 minutes |
Marking scheme |
|
Mode of exam | Computer-based |
The CFA Institute provides syllabus of CFA level III exam and the list of important topics on its official website. The official curriculum of CFA level 3 covers complete details related to the CFA Level 3 topics, sub-topics covered as well as the weightage carried by each topic.
CFA level 3 topics | Weightage |
Economics | 5–10% |
Portfolio Management | 35–40% |
Derivatives | 5–10% |
Fixed Income | 15–20% |
Equity Investments | 10–15% |
Alternative Investments | 5–10% |
Ethical and Professional Standards | 10–15% |
Quantitative Methods | 0% |
Financial Reporting and Analysis | 0% |
Corporate Issuers and Finance | 0% |
Candidates must go through the entire syllabus of CFA level 3 before starting the preparation. Following listed are the topics covered under each subject of CFA level 3:
Portfolio management and wealth planning
Portfolio management and wealth planning covers 35%-40% of the entire syllabus of CFA level 3 exam. Behavioural finance, private wealth and institutional topics covers 15%-25% and asset allocation, trading, performance evaluation covers 10%-20% of the entire topic. The sub-topic of portfolio management and wealth planning are:
The investment policy statement
Modern portfolio management concepts
Investment vehicles (including etfs and mutual funds)
Market efficiency and passive investing
Market indexes
Behavioural finance
Technical analysis
Environmental, social, and governance (ESG) investing
Management of individual/family investor portfolios
Tax impact of investment decisions
Management of institutional investor portfolios
Investment manager selection
Asset allocation
Portfolio construction and revision
Currency management
Liability – driven investments (including asset liability management and Goal-based investing)
Risk management (including environmental risk)
Execution of portfolio decisions (including trading and market microstructure)
Performance attribution and appraisal
Fixed income
Finance income subject covers 15 to 20% of the CFA level 3 syllabus. The sub topics of fixed income are:
Types of fixed-income securities and markets
Fundamental fixed income analysis
Term structure determination and yield spreads
Valuation of individual fixed income securities
Analysis of interest rate risk
Analysis of credit risk
Valuing bonds with embedded options
Structured products
Fixed-income portfolio management
Ethical and professional standards
Ethical and professional standards subject covers 10 to 15% of the entire syllabus of CFA level. The subtopics of Ethical and professional standards are:
Professional standards of practice
Ethical practices
Asset manager code of professional conduct
Presentation of performance results (GIPS)
Equity investments
Equity investment subject covers 10 to 15% of the CFA level 3 syllabus. The subtopics of equity investments are:
Types of equity securities and markets
Fundamental equity analysis
Valuation of individual equity securities
Equity market valuation
Equity portfolio management
Economics
Economics subject of CFA level 3 covers around 5 to 10% of the complete syllabus of CFA level 3. The importance of economics are:
Market forces of supply and demand
The firm and industry organization
Business cycles
Inflation and deflation
International trade and capital flows
Currency exchange rates
Monetary system, monetary and fiscal policy
Economic growth and development
Effects of regulations
Economic analysis and setting capital market expectations
Effects of geopolitics on economies and investment markets
Applications of economic indicators in the investment process
Derivatives
Derivatives subject comprise 5 to 10% of the entire CFA level 2 syllabus. Important topics of derivatives are as under:
Types of derivative instruments and markets
Valuation of forwards and futures contracts
Valuation of option contracts
Valuation of swap contracts
Uses of derivatives in portfolio management
Alternative Investments
Alternative investments subject covers the 5 to 10% of the CFA level 3 syllabus. The important topics of alternative investment are:
Types of alternative investments
Real estate
Real assets (including infrastructure, timber and farmland)
Private capital (including private equity, private credit and venture capital)
Hedge funds
Commodities
Alternative investments portfolio management
CFA Level 3 Exam Question Format
According to CFA Level 3 paper pattern, item sets and constructed response (essay) sets will be mixed within each of the two exam sessions, so each session will have either 6 item sets and 5 essay sets or 5 item sets and 6 essay sets.
Constructed response (essay) format
The first session will be vignette-supported essay sets that have items with three different methods of entering a response: essay, numerical entry, multiple choice. Each essay set will have a variable number of items, and each one is worth a variable-number points. There may be multiple questions within one essay item.
Item set format
The second session of the CFA Level 3 exam consists of 44 multiple choice items, each worth 3 points. Each item set on the CFA exam consists of a vignette followed by 4 multiple-choice questions.
Example Level 3 Exam Questions - Level 3 item set questions (PDF)
For the preparatory purpose, candidates should refer to the level 3 past question papers of CFA level 3 exam, attempt some CFA level 3 sample papers and mock tests to get a grasp on the topics covered. CFA level 3 question paper also has essay questions, hence knowledge on how to solve the essay questions is equally important along with solving MCQs.
Exam questions referring to Financial Statement Analysis are based on International Financial Reporting Standards (IFRS) unless otherwise specified. When a question is based on US GAAP, it will be stated in the question.
Be comfortable with your calculator. Make sure you know how to use the calculator features needed to address the learning outcome statements (LOS).
Answer all questions. There is no penalty for incorrect answers.
Dress comfortably. There is no dress code, but dress in layers for comfort.
Take a mock exam to practice answering exam questions. This experience is designed to mimic the actual exam-day.
Learn how hardware/software at the test centres may impact your exam-day experience.
Review the CFA exam calendar for key dates and to meet pre-exam deadlines.
The CFA Institute also releases study material for CFA Level 3 so that candidates can prepare for the exams in a bettern manner. Students preparing for the exam must thoroughly go through the CFA Level 3 official curriculum given by the CFA institute. The CFA institute has released the 2024 exam curriculum of CFA Level 3 too. Apart from the curriculum, candidates can refer to the CFA Level 3 Learning Ecosystem to access study resources. Students can also take help of CFA practice questions, mock exams, practice packs and more for their CFA Level 3 preparation. Here is a list of CFA Level 3 study resources available for preparation:
The subjects covered in level 3 of CFA exam are portfolio management and wealth planning, fixed income, ethical and professional standards, equity investments, economics, derivatives and alternative investments.
Aspirants must start preparing for the CFA level 3 exam well in advance as the exam is tougher than the CFA level 2.
In CFA level 3 exam, item sets and constructed response (essay) sets will be mixed within each of the two exam sessions, so each session will have either 6 item sets and 5 essay sets or 5 item sets and 6 essay sets.
The overall CFA level 3 pass rate is 52% since the last ten years.
CFA level 3 is tougher than the CFA level 2 exam. Candidates must plan well in advance and stick to the study schedule to clear the exam.
The CFA Level 3 will have 8 to 10 vignette-supported essay sets in the morning session and 44 vignette-supported multiple-choice questions in the afternoon session.
Some of the hardest topics in CFA Level 3 are are Fixed Income, Ethics, Equity Investments, Alternative Investments and Derivatives.
The CFA Level 3 exam basically consists of a vignette followed by 4 multiple-choice questions.
Budget analysis, in a nutshell, entails thoroughly analyzing the details of a financial budget. The budget analysis aims to better understand and manage revenue. Budget analysts assist in the achievement of financial targets, the preservation of profitability, and the pursuit of long-term growth for a business. Budget analysts generally have a bachelor's degree in accounting, finance, economics, or a closely related field. Knowledge of Financial Management is of prime importance in this career.
The invention of the database has given fresh breath to the people involved in the data analytics career path. Analysis refers to splitting up a whole into its individual components for individual analysis. Data analysis is a method through which raw data are processed and transformed into information that would be beneficial for user strategic thinking.
Data are collected and examined to respond to questions, evaluate hypotheses or contradict theories. It is a tool for analyzing, transforming, modeling, and arranging data with useful knowledge, to assist in decision-making and methods, encompassing various strategies, and is used in different fields of business, research, and social science.
A Researcher is a professional who is responsible for collecting data and information by reviewing the literature and conducting experiments and surveys. He or she uses various methodological processes to provide accurate data and information that is utilised by academicians and other industry professionals. Here, we will discuss what is a researcher, the researcher's salary, types of researchers.
Welding Engineer Job Description: A Welding Engineer work involves managing welding projects and supervising welding teams. He or she is responsible for reviewing welding procedures, processes and documentation. A career as Welding Engineer involves conducting failure analyses and causes on welding issues.
A quality controller plays a crucial role in an organisation. He or she is responsible for performing quality checks on manufactured products. He or she identifies the defects in a product and rejects the product.
A quality controller records detailed information about products with defects and sends it to the supervisor or plant manager to take necessary actions to improve the production process.
A QA Lead is in charge of the QA Team. The role of QA Lead comes with the responsibility of assessing services and products in order to determine that he or she meets the quality standards. He or she develops, implements and manages test plans.
A Structural Engineer designs buildings, bridges, and other related structures. He or she analyzes the structures and makes sure the structures are strong enough to be used by the people. A career as a Structural Engineer requires working in the construction process. It comes under the civil engineering discipline. A Structure Engineer creates structural models with the help of computer-aided design software.
The Process Development Engineers design, implement, manufacture, mine, and other production systems using technical knowledge and expertise in the industry. They use computer modeling software to test technologies and machinery. An individual who is opting career as Process Development Engineer is responsible for developing cost-effective and efficient processes. They also monitor the production process and ensure it functions smoothly and efficiently.
Placements in Top MNCs
Online PG programs from Symbiosis Centre for Distance Learning
Select test center appointment | Scores valid for 5 Years | Multiple Attempts | Round 1 Applications Closing Soon
Apply for Online MBA from Chitkara University
Merit Scholarships worth 1 Crore on offer | Accredited by NAAC | Average CTC 4.76 LPA
Approved by UGC | Merit-based scholarships