If you're looking to advance your career in the field of finance, then the CFA® Level 3 exam is an excellent way to demonstrate your expertise. The Chartered Financial Analyst (CFA) designation is one of the most respected credentials in the industry, and passing the CFA® Level 3 exam is a critical step in earning it.
The CFA® Level 3 exam aims to test a candidate's ability to apply the knowledge and skills acquired in the previous levels to real-world investment situations. The exam objectives are as follows:
- Evaluate and apply the principles of behavioral finance to investment decision making
- Construct and manage multi-asset class portfolios
- Develop and implement advanced strategies for managing fixed income portfolios
- Assess and apply derivative instruments to risk management strategies
- Evaluate and apply alternative investments strategies to portfolio management
- Monitor and rebalance institutional portfolios and evaluate portfolio performance
Anyone looking to become a CFA charterholder should take the CFA® Level 3 exam. However, it's essential to note that the exam is only open to individuals who have completed the CFA® Level 1 and Level 2 exams. In addition, candidates must have a bachelor's degree or four years of professional work experience in a related field.
There are a variety of books and study materials available to help you prepare for the CFA® Level 3 exam. Here are a few that we recommend:
- CFA Program Curriculum 2023 Level III Volumes 1-6
- Wiley's 11th Hour Guide for 2023 Level III CFA Exam
- SchweserNotes for the 2023 CFA Exam Level III
- The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel by Benjamin Graham
- The Handbook of Fixed Income Securities by Frank J. Fabozzi
The CFA® Level 3 exam is a computer-based test that consists of essay questions and item sets. The exam is divided into two sessions, each lasting three hours. The morning session covers essay questions, and the afternoon session covers item sets. The exam is offered once a year, typically in June, and the cost varies depending on when you register. The early registration fee is $1,000, the standard registration fee is $1,450, and the late registration fee is $2,050.
To pass the CFA® Level 3 exam, candidates must achieve a minimum passing score set by the CFA Institute. The passing score is not published, and candidates will only receive a pass or fail result. The exam results are typically released in August.
In conclusion, the CFA® Level 3 exam is a challenging but rewarding test that requires significant preparation and dedication. By understanding the exam objectives, studying the right materials, and putting in the necessary work, you can pass the exam and earn your CFA charter.