How to prepare for CFA Level 3 Exams in May 2021

The CFA classification is now recognised for its prominence and importance. CFA is a renowned world name. Applicants shall clear three levels of CFA – level I, CFA level II, and CFA level II. A detailed overview of topics such as quantitative methods, economics , finance and valuation, tax valuation, equity transactions, and tax is given by all 3 CFA levels – level I, level II and level III. The qualifications of the chartered financial analyst also include CFA Levelling. CFA is designed to increase the difficulty level for each theme as you progress to the next level. It's therefore frustrating and difficult for Level III CFA to be more frustrating than Level I and level II CFA. The CFA Institute reports the following:

  • The standards of professional and ethics
  • The CFA is completed for an average of 4 years.
  • The CFA analytical stage takes over 300 hours.
  • The preparation is at least 6 months for every CFA stage.


Some informations regarding the question paper of CFA level 3:

Two hours of the morning session and three hours of the afternoon session will be the Dec 2020 Level 3 test. You should anticipate 8-15 thumbnails in the morning session, i.e. open-ended questions typically called constructed answer questions. Each query starts with a case study that has multiple sections (e.g. A, B , C). Any part is followed by the following command words (bold), and an estimated response time. The questions answered cover particular topics and need straightforward and concise answers:

During the afternoon session 10 to 15 items (structured as for the CFA level 2 exam) can be addressed.

The test-day experience will improve in 2021, when the CFA test moves to CBT. The entire test time is reduced to a maximum. Four and a half hours. Details on CFA Level 3 exams in 2021 are currently not known. What we already know is:

  • It will be approx one thirty five minutes long for each and every sessions,
  • Questions would also be formed into item sets (vignetted multi-choice questions, i.e. short description).
  • Six or four questions will be answered by multiple choice per item collection.
  • As a six-question item collection, a set of four items would have 2/3 of the number of points;
  • The level 3 analysis would, as always, still have some open-ended problems.


Some important tips for CFA level 3 candidate:


Level 3 is with little bit twist

Level 2 is very various and primarily computational. CFA Level 3 May 2021 exams is, on the other hand, highly qualitative and conceptual in nature – you will get points from an analysis by knowing the spirit and idea behind the topics.

Although the overall problem of Level 3 is less content, for many candidates it is a 'built-in answer' specific to the Level 3 format which accounts for 50% of the test. The response you have created is basically a "non-multiple choice" to write down your replies. Level 3 provides a very wide range of details, compounded by conceptual readings that at times can feel very vague and dry.


Utilize the CFA curriculum

For Level 3 applicants, the CFA Institute curriculum documents are particularly useful because it provides you a taste of the style of questions and of how to answer them specifically because of the logical nature of the test. While some candidates can swear and only use it for level 3 preparations, other applicants can find endless text chunks overwhelming and select materials from third parties instead. I saw these Level 3 candidates going through both camps, so choose what fits the best for you.


It is still worth considering the selectively use of CFA curriculum documents to supplement your studies if you use third-party materials only:

  • Please answer questions from the End of Chapter and Blue Box after each reading is complete (and more). This provides you with an initial evaluation of your understanding so far (useful knowledge in practise) and an opportunity to get used to the question style. It could lead to panic later if this is done too close to the test. After completing all your readings, you can also review these questions for another soft assessment of your overall study understanding.
  • See the materials in the curriculum to explain any unclear areas , especially in the sense of the questions or areas in which you make summary notes.
  • See the Ethics and GIPS curriculum to add to your understanding as GIPS can be a challenge.

Do not underestimate yourself

Usually the round will be the toughest to perceive this effectively after 2 (or more) years of self-sacrifice and testing. This can lead to corners that impact your success in your planning. Rather draw strength from the fact that if you do this correctly, you're always the last time you have to do it. Knock the last guy out of the park right away.


Understand the format and its implications

The "test" format of the Morning (AM) paper will be difficult, but you won't find that to be hard.

Actually, "try question" is a misnomer-it is simply not a multiple choice in which written responses are appropriate.

They come into one of two broad ranges:

  1. Calculation-based responses display all the work / methods in order to ensure that you get all you can;
  2. Word-based answers, in which they're searching for basic answers to the questions.

This is the second form to get used to by most candidates. To answer the short questions in the AM article, make sure you understand exactly HOW:


Be conscious

 Remember, this isn't a matter of "checking." The examiner wants core ideas, not a novel by Pulitzer. For most of these you will find that you either know your answer, or you don't know, or it will take you just a few minutes to write it down in bullet form. And if you do not, it will not help to write about all these other concepts you know..


Write efficiently to save time

: In bullet points and common notations you can use basic phrases (for example formulas, arrows, equal signs, etc) but please be sure to write enough to have complete points on the page. One thing is to define the correct answer; you must prove that you understand the definition and apply it straight away.


Know where to write down your answers

 It sounds obvious, but you can confuse where you are supposed to write down your answer if you have rushed or not read the instructions correctly. In some cases, answers may be required to be written in a reply template, usually on a separate page. Responses written elsewhere won't be graded.


Practise under time constraints

In view of your previous Level 2 interactions, I will not dive into the details of PM paper practise (vignette-supported question multiple choices). Here you know what to do. But to have done it before does not mean that you pay less attention to it.


For CFA Level 3 November exams applicants, a common challenge is how to practise the developed answer section in the AM report. Some tips and advice are given here:


Save a minimum 6 weeks for practice and revision: from our experience, it is best to go through the readings quickly once and start trying out practise questions under timed constraints. During this time you can learn the most by "plugging the void" in your experience.

Do actual practice papers with writing: In the age of computers, most of us have easily lost touch, not to mention three hours, with writing. Time for finger and hand muscles to train!

Keep calm and dont panic: Every part of the CFA Institute curriculum can simply be asked for the test.If that's all right in the multiple-choice PM paper (thinking about any strategies?), you'll make a blank note of the AM paper.


It is important to expect this on the day of the test, not to panic. It may be difficult to believe, but no matter how much training you have put in you will know everything. Focus only on the strategy to optimise your score and try to stay calm until the end. Now is not possible to give up, this is the last test and you may have scored just enough to pass it alone. Maybe this one is tough but this is the last CFA exam.


Concluding Note

Only scan your CFA curriculum. Six books, one hundred pages, each one. You need a long time to read – not say what you read – from top to bottom. You must be structured into a research programme, to take advantage of your study time. And note, to keep it up, both of you need a good Level 3 research plan! However, just a word on the quality of the article. I will call logical level 3 because you test your general knowledge and financial comprehension. Any definitions required to ensure they are accurate might be a good idea during the study. In order to do this, several online research materials are available to make the necessary doses of information easier to use.



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