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CFA Level 3 - Introduction

The Level III essay exam is given in the morning session and has a maximum score of 180 points. The essay exam typically has 10–15 questions, and questions may have multiple parts. The point value for each question is provided in the exam.

On the essay section of the Level III exam, you'll see two types of questions:

  • One requires that you write your answers on the lined page(s) following the question. For these questions, label each part of your answer clearly (A, B, C, or i, ii, iii, etc.)
  • The other type asks you to provide your answers in a template following the question. Instructions in bold print immediately following the question direct you to the page number of each template.


Some questions contain a mix of these two question and answer types. Each essay question may have as few as one part or as many as 7-8 parts, so be sure to read and understand how to answer the entire question.

Essay Exam Book Features

Your exam book will contain three features to help ensure you answer all parts of each question in the appropriate place:

  • Page one of the exam book lists all of the questions on the exam, and the topic and minutes assigned for each question
  • The heading on the page where each question begins states the number of parts in that question and the total number of minutes/points. For example: “Question 2 has two parts (A, B) for a total of 18 minutes”
  • Immediately after each subpart that requires a template answer, you will find a statement with the page number of the template. For example: “Answer Question 2-B in the Template provided on page 12”

Make sure you familiarize yourself with the essay exam question formats so that you don't overlook any part of a question. Use the templates to provide your answers in an efficient manner.

The following are some general tips for Level III candidates on the essay exam:

  • The published guideline answers on past essay exams are more complete and better written than actual exam answers that receive full credit.
  • The published guideline answers may not reflect all alternative approaches to the question that received full or partial credit.
  • Answers are graded only on content. They are not graded for language and style.
  • Use short phrases and bullet points to save time, but be sure your meaning is clear.
  • Handwriting is rarely so poor that the answer cannot be graded.
  • Points are awarded for direct answers to a question.
  • No points are awarded for general knowledge that is not responsive to the question.
  • Do not spend too much time writing an answer. This is particularly tempting when you know the topic well. Formulate a direct response to the command words, and use the amount of time allotted.
  • You should expect to encounter questions that you will not be able to answer correctly. There is a great deal of material to master and exam questions are challenging. Standard setters and the Board of Governors (at all three levels) take account of exam difficulty in setting Minimum Passing Scores.

The following are common reasons that graders give for poor candidate performance on the essay portion of the Level III:

  • Not responsive to command word list (list, define, etc.)
  • Answered a question they wish they had been asked instead of the question that was asked.
  • No work shown on a calculation question and the answer is incorrect.
  • Hedged on questions that asked for a recommendation and justification (e.g., recommended A, but justified B).
  • Neglected to answer part of the question (especially if a several part question). Note that you can still answer part E, even if you do not know the answer to part D.
  • Content area experts spent too much time on their area of expertise, leaving too little time for weak areas.
  • Providing more items or responses than requested. If a question asks for three factors, only the first three that you list will be graded.
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