How to Study for CFA Level III

• 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.

The most important part of studying for the Level III CFA exam is creating a study plan you can stick to. You’ll want to make sure you allocate enough time to test your knowledge and check that you can apply what you have learned. Keep reading for expert tips and advice on how to best prepare for the Level III exam.

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.

The Level III exam, just like its predecessors, has plenty of reading material to cover. Make sure you have several months blocked off to read the content, highlighting along the way and re-reading sections that don’t come as easy. Keep the CFA topic weights in mind as well, and prioritize topic areas that are areas of weakness as you go.

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.

Memorizing content has helped you get this far, especially on CFA Level I. But you’ll find that understanding the concepts and applying them to real life-situations is even more important on Level III. This challenge gives you an opportunity to explore a study group.

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 UWorld’s Study Groups page to connect with other CFA candidates.

Increase your study preparation with our CFA Level III Study Guide.

The biggest difference between the Level III exam and the others in the CFA Curriculum is the addition of structured response or essay questions. In fact, calling them essay questions isn’t very accurate as graders are more interested in your knowledge of the concept than how eloquently you write about each one.

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.

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.

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.