CFA Level III

What is CFA Level III?

CFA Level III is the final exam in the CFA Program. It tests how well you can use your finance and investment knowledge to make investment decisions.

The exam gives you real-life investment situations and asks you to choose or explain the best solution.

For example: You study the share market and decide which company shares to buy.

Conducted by: CFA Institute.

📌 Quick Facts

Who Can Apply: Candidates who have passed the CFA Level II exam and meet CFA Institute requirements.

Mode: Computer-Based Test (CBT)

Duration: 4.5 Hours

Exam Format: Multiple Choice Questions (MCQs) and Constructed Response Questions

Frequency: Three times a year (usually in February, August and November)

  • Level II: You must pass the CFA Level II exam before taking Level III.
  • Practical Skills Module: You must complete the required Practical Skills Module for Level II before you can move on to Level III.
  • Practical Skills Module (PSM): A Practical Skills Module (PSM) is a short, practical course that teaches you how to use what you learn in the CFA Program in real-world situations.
  • Registration: You must meet CFA Institute's requirements and register for the Level III exam.

Mode: Computer-Based Test (CBT)

Duration: 4.5 Hours

Exam Format: Constructed-Response Questions and Multiple Choice Questions (MCQs)

  • Constructed-Response Questions: A constructed-response question is a question where you write your own answer instead of choosing one from options.

Sessions: 2 Sessions of 132 Minutes Each

Question Format: Questions are based on real-life investment situations.

Negative Marking: No Negative Marking

Practical Skills Module (PSM):

  • A Practical Skills Module (PSM) is a short, practical course that teaches you how to use what you learn in the CFA Program in real-world situations.

The CFA Level III exam has a common core and one specialized pathway.

Common Core:
  • Asset Allocation: 15–20%
  • Portfolio Construction: 15–20%
  • Performance Measurement: 5–10%
  • Derivatives and Risk Management: 10–15%
  • Ethical and Professional Standards: 10–15%
Specialized Pathway (Choose One):
  • Portfolio Management
  • Private Markets
  • Private Wealth

Pathway Weight: 30–35%

🌐 Official Website