CFA® Level III: free lessons, practice and mock exam
Synthesis and evaluation: construct portfolios and justify decisions. 11 item sets and 11 constructed-response (essay) sets, each worth 12 points, in two sessions of 2 hours 12 minutes. Candidates choose one pathway: Portfolio Management, Private Markets or Private Wealth.
Asset Allocation 15–20%
Capital market expectations, asset allocation approaches and real-world constraints.
- Capital Market Expectations, Part 1: Framework and Macro Considerations
- Capital Market Expectations, Part 2: Forecasting Asset Class Returns
- Overview of Asset Allocation
- Principles of Asset Allocation
- Asset Allocation with Real-World Constraints
Portfolio Construction 15–20%
Equity, fixed income, alternatives, private wealth and institutional portfolios, trading costs and a sovereign wealth fund case.
- Overview of Equity Portfolio Management
- Overview of Fixed-Income Portfolio Management
- Asset Allocation to Alternative Investments
- An Overview of Private Wealth Management
- Portfolio Management for Institutional Investors
- Trading Costs and Electronic Markets
- Case Study in Portfolio Management: Institutional (SWF)
Performance Measurement 5–10%
Performance evaluation and attribution, manager selection, and the Global Investment Performance Standards (GIPS).
- Portfolio Performance Evaluation
- Investment Manager Selection
- Overview of the Global Investment Performance Standards
Derivatives and Risk Management 10–15%
Options strategies, swaps, forwards and futures strategies, and currency management.
Ethical and Professional Standards 10–15%
The Code and each Standard in its own module, their application at Level III, and the Asset Manager Code.
- Code of Ethics and Standards of Professional Conduct
- Guidance for Standard I: Professionalism
- Guidance for Standard II: Integrity of Capital Markets
- Guidance for Standard III: Duties to Clients
- Guidance for Standard IV: Duties to Employers
- Guidance for Standard V: Investment Analysis, Recommendations, and Actions
- Guidance for Standard VI: Conflicts of Interest
- Guidance for Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate
- Application of the Code and Standards: Level III
- Asset Manager Code of Professional Conduct
Pathway: Portfolio Management 30–35%
Index-based and active equity, liability-driven and yield-curve strategies, credit strategies, trade execution and an endowment case.
- Index-Based Equity Strategies
- Active Equity Investing: Strategies
- Active Equity Investing: Portfolio Construction
- Liability-Driven and Index-Based Strategies
- Yield Curve Strategies
- Fixed-Income Active Management: Credit Strategies
- Trade Strategy and Execution
- Case Study in Portfolio Management: Institutional (Endowment)
Pathway: Private Markets 30–35%
Private investment structures, GP and LP perspectives, private equity, private debt, special situations, real estate and infrastructure.
- Private Investments and Structures
- General Partner and Investor Perspectives and the Investment Process
- Private Equity
- Private Debt
- Private Special Situations
- Private Real Estate Investments
- Infrastructure
Pathway: Private Wealth 30–35%
The private wealth industry, working with wealthy clients, wealth and investment planning, preserving and transferring wealth.