CFA Level 3 Essay Preparation Tips
Chartered Financial Analyst Exam 2026 ( CFA Exam )
Result - 19 Mar '26
While earlier levels focus on multiple-choice questions, Level 3 includes a constructed response (essay) section that tests application, reasoning, and written justification. Read below to know how to prepare for CFA Level 3 essay questions
CFA exam is known to be one of the most difficult finance exams in the world. Level 3 of the CFA exam includes constructive responses or essay questions. The CFA Level 3 exam is different from Level 1 and Level 2. While earlier levels focus on multiple-choice questions, Level 3 includes a constructed response (essay) section that tests application, reasoning, and written justification.
Many candidates fail not because they lack knowledge, but because they do not understand how to answer essay questions effectively. This article covers practical and exam-focused CFA Level 3 essay preparation tips to help you improve your score.
Understand the CFA Level 3 Exam Structure
Like the Level II exam, Level III exam will also have item set questions which will be comprised of vignettes. The CFA level 3 exam will also have constructed responses (essays) sets. The exam will be conducted in two sessions. The total duration of the Level III exam will also be 4 hours and 24 minutes. This will be divided equally into two sessions.
- Level III consists of item sets and essay-type questions
- Morning session: Constructed response (essay) questions
- Each session will be conducted for 2 hours and 12 minutes with an optional break in between
- All the questions are mandatory
Focus on Command Words
One of the most important CFA Level 3 essay tips is understanding command words. Marks are awarded based on how accurately you respond to the directive.
Common command words include:
• Calculate
• Justify
• Determine
• Recommend
• State
For example:
• “Calculate” requires showing formulas and final answers.
• “Justify” requires a reason that directly answers the question.
• “State” requires a short, precise answer — not an explanation
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Student Forum
Anything you would want to ask experts?Answered 3 days ago
A candidate who has scored really well could have a high confidence interval. They will have grey line with the confidence interval box above MPS.
A candidate who has scored poorly can have a high confidence interval, they would not have passed under any circumstances and would need to study more in
S
Contributor-Level 6
Answered 3 days ago
The light blue box around or over and above the MPS is the confidence interval in CFA result card.
N
Contributor-Level 6
Answered 3 days ago
CFA result cum scorecard includes a purple dashed line, which indicates 90th percentile. This means that 10 per cent of students scored higher than this.
R
Contributor-Level 6
Answered 3 days ago
CFA result has thick black dotted line in the scorecard. It shows the 10th percentile score, i.e. 10% of candidates who took the exam scored lesser than this.
A
Contributor-Level 6
Answered 3 days ago
Check the table below to know the level wise average pass rate in India:
| Level | Average Pass Rate in India |
|---|---|
| Level 1 | 35% to 45% |
| Level 2 | 40% to 50% |
| Level 3 | 45% to 55% |
M
Contributor-Level 6
Answered 3 days ago
The average pass rate in India is 35% to 45%. Check the table below to know the CFA pass rate in India for Level 1:
| Year | Pass Rate in India |
|---|---|
| 2019 | 32% |
| 2020 | 46% |
| 2021 | 19% |
| 2022 | 33% |
| 2023 | 35% |
| 2024 | 43% |
| 2025 | 46% |
S
Contributor-Level 6
Answered 3 days ago
CFA level 1 and 2 results are released within 5 to 7 weeks. Level 3 results are released within 8 weeks.
V
Contributor-Level 6
Answered 3 days ago
CFA level 1 February result will be released on March 19, 2026. CFA level 3 2026 result for the February session will be released on April 7, 2026. The results will be announced online.
R
Contributor-Level 6
Answered a month ago
Angoff Method is used by subject matter experts to decide probability of a student answering each question correctly in CFA exam. These probabilities range from 0 to 100 and are then averaged for each question. Then the averages are added to find the final cutoff or minimum passing score in CFA exam
R
Contributor-Level 6
Answered a month ago
Name of Books | Authors |
|---|---|
Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions | Pearl and Rosenbaum |
2021 CFA Level I | Kaplan Schweser |
Strategic Value Investing: Practical Techniques of Leading Value Investors | Stephen M. Horan, Robert R. Johnson and Thomas R. Robinson |
When Genius Failed: The Rise and Fall of Long-Term Capital Management | Roger Lowenstein |
The Cartoon Guide to Statistics | Larry Gonick and Woollcott Smith |
CFA Level I | Bhupesh Ananad |
The Handbook of Fixed Income Securities | Frank J. Fabozzi |
Contributor-Level 10
Saumya Jain is an English Literature graduate from the University of Delhi. She has over 8 years of editorial and content writing experience. At Shiksha.com, she has spent more than six years creating research, stud
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