How to Prepare for CFA Level 3 Exam 2021
How to Prepare for CFA Level 3 Exam 2021- The final exam for the Chartered Financial Analyst Course is the CFA level 3 exam. The pass rate for Level III is 56%. Students who wish to become a successful financial analyst need utmost dedication. Candidates need to practise questions and understand the CFA level 3 exam pattern as part of their study plan for CFA level 3.
They should be motivated for the meticulous preparations for the CFA level 3 exam. CFA level III exam sums up all the knowledge gained in the Level I and II exams and focuses on applying the knowledge to a situation. The candidates should study targeted core curriculum topics from the CFA level 3 books and devote approximately 344 hours of study.
The Level III exam focuses on constructed response based questions. The responses can be word-based or calculation based. Candidates must plan their exam preparation for CFA level 3 such that they manage their time well. Not too much time should be devoted to one question only. To know more about the complete set of tips for the CFA level 3 study plan, read the complete given below:
CFA level 3 exam preparation Tip 1: Manage your time well for the CFA level 3 exam.
CFA Institute has recommended spending 300 hours on every level of the level 3 exam. The knowledge gained while studying in CFA level I and CFA level II should be handy in preparing a well-structured study plan for CFA level 3. The constructed response or essay based responses are an integral part of the CFA level 3 format. The item sets in CFA level III are more complex so practise is of utmost importance.
The successful candidates spend appropriately 344 hours in the exam CFA level 3 preparations.
Candidates should track their studies as per the time left before the exam. Ideal candidates should complete studying 2.5 readings per week.
It is ideal to spend 1-2 weeks before the exam completely for the CFA level 3 exam preparation.
Candidates should plan their timing as per the number of questions and prepare a study plan for CFA level 3.
They should allow appropriate time for each question as per the answer length and the amount of information, the candidate intends to put in their answer.
CFA level 3 exam preparation Tip 2: Have a clear understanding of CFA level 3 curriculum
The CFA institute has 7 core curriculum CFA level 3 topics in the new syllabus. Candidates should spend appropriate time on each topic as per its respective weightage. Candidates should refer to the detailed curriculum and books for CFA level 3 to prepare the topics.
All 7 core curriculum topics are tested in both sessions of the level 3 exam. Candidates should devote time to all the topics before the CFA Level 3 exam dates.
Ethical and Professional Standards
Portfolio Management and Wealth Planning
CFA level 3 exam preparation Tip 3: Understand the CFA level 3 exam format
It is important to understand the CFA level 3 exam pattern before preparing a study plan for CFA level 3. The main elements of the exam pattern of CFA level 3 exam are given below:
CFA level 3 exam pattern
Type of questions
Mini cases (Constructed response-based)
Mode of questions
Number of questions
Number of sessions
2 sessions( 2.25 hours each)
Duration of the exam
CFA level 3 exam preparation Tip 4: Leave enough time for practise questions and revision
Candidates should divide their study time such that at least 7-10 weeks are devoted to practising questions and revision of chapters. While solving the practice questions, candidates should take care of these important points:
Make relevant notes while solving practise questions for areas that require more revision or practise.
Plan a time limit for each question and write the answer in that specific time constraint.
CFA level 3 exam is all about maximising score by showing your work and calculations.
Candidates should solve maximum questions as there is no negative marking.
For practice papers for the constructed response based questions, find the downloadable pdfs here,
Sample Papers for CFA level III
CFA level 3 exam preparation Tip 5: Keep your answers short and crisp
It is very important to write answers properly in the CFA level 3 exam. Bullet points, short sentences and formulas should be used to stress important points in the answers. The answers should be to the point and content information that stresses on the information provided in the question.
If the answer is not relevant, the examiner would not spend much time on your answer. The candidates should look at the guideline answers available on the CFA institute website before answering.
For questions that require calculations, candidates should mention the steps that were taken to arrive at an answer. Marks are avoided for the steps and formulas used in the calculation based questions.
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Frequently Asked Question (FAQs) - How to Prepare for CFA Level 3 Exam 2021
Question: I have to prepare for the CFA level 3 2021. Is it sufficient to cover the curriculum provided on CFAI website?
Yes, the CFA level 3 exam will be dependent on the curriculum provided by the CFAI on their official website. Registered candidates will be able to view the study material as well.
Question: Is it necessary to practise questions to prepare for the CFA level 3 exam?
CFA Level 3 2021 has a different exam format. It is useful to solve maximum question papers and understand the guideline answers to score well in the exam.
Question: Do I need to have strong Maths skills for qualifying the CFA level 3 2021?
The CFA level 3 exam will have a lot of calculation based question. It is recommended to work on your maths to solve the questions and apply correct formulas.
Question: Does the CFAI provide weightage of CMA level 3 topics to prepare a study plan?
Yes, the topic-wise weightage is available on the official website.