- General advice video which explains how to take the Level III essay exam.
- Several videos on how to solve specific questions from actual CFA Institute essay exams. These videos guide you on how to think while responding to essay exam questions.
- Only questions relevant to the 2020/2021 exam/curriculum are addressed.
- The questions from exam years 2009 to 2015 are organized by topics such as behavioral finance, individual investor portfolios, and so on.
- The questions for 2016, 2017, and 2018 are organized by exam year.
- Since 2019, CFA Institute has stopped publishing the essay (morning) exam. So we cannot update our videos for 2019 onwards.
- Below you will find the list of questions covered before 2016:
Year | Q# | Concepts tested |
Behavioral Finance Questions from the 2012 – 2015 Essay Exams | ||
2015 | 11 | Regret aversion, loss aversion, mental accounting, framing biases |
2014 | 11 | Availability, endowment, framing, regret aversion, representativeness, self-control; moderating versus adapting to biases |
2013 | 3 | Friedman-Savage utility function, behavioral biases, behavioral portfolio theory vs mean-variance framework |
2012 | 4 | Anchoring, hindsight, regret aversion, representativeness, status quo, conservatism, endowment, mental accounting, illusion of control; recognize which biases are cognitive versus emotional; moderating versus adapting to biases |
Individual Portfolio Management Questions from the 2011 – 2015 Essay Exams | ||
2015 | 7 | Calculate bequest amount, calculate gift amount, ability to take risk, liquidity and time horizon constraints. |
2014 | 1 | Risk tolerance, liquidity requirement, post retirement portfolio value, calculate portfolio's % return after tax. |
2014 | 2 | Options strategy to reduce wealth concentration and defer taxes, reduce cost of hedging, cashless collar, forward conversion with options strategy. |
2013 | 1 | Calculate after tax required return, ability to take risk, calculate liquidity requirement, portfolio selection based on objectives and constraints. |
2013 | 2 | Estate planning, benefits of trust, gift vs bequest, generation skipping. |
2012 | 1 | Calculate required return, ability to take risk, earnings and financial market risk, liquidity and time horizon constraints, human capital. |
2012 | 2 | Tax considerations Note: Part B is not relevant. |
2011 | 1 | Behavioral biases, estate planning |
2011 | 2 | Calculate after tax nominal return, risk tolerance, liquidity and time horizon constraints, Monte Carlo simulation model. |
Institutional Portfolio Management Questions from 2011 – 2015 Essay Exams | ||
2015 | 1 | Pension plan: Risk tolerance, calculate return requirement, impact of early retirement option. |
2015 | 2 | Institutional IPS, risk tolerance, and constraints Note: Part A & B are not relevant. |
2014 | 5 | Pension plan: Risk tolerance, liquidity requirement, asset-only and liability mimicking now known as liability-relative approach. Note: Part C is not relevant. |
2014 | 6 | Endowment: Risk tolerance, return requirement, compare risk tolerance and liquidity requirement of endowment with pension plan. |
2013 | 6 | Foundation: Risk tolerance, calculate nominal required return, calculate liquidity requirement. |
2013 | 7 | Pension plan: Shortfall risk. Note: Part C and D are not relevant. |
2012 | 6 | Pension plan: Return objective and return requirement, risk tolerance, asset allocation, asset-only and liability relative approach, DB plan vs participant-directed DC plan. Note: Part C, D and E are not relevant. |
2011 | 3 | Endowment: Formulate and calculate return objective for endowment, risk tolerance, liquidity and time horizon constraints, maintaining real value and reducing volatility of endowment. |
Economic Analysis Questions from the 2011 – 2015 Essay Exams | ||
2015 | 10 | Grinold-Kroner model, Taylor rule, risk premium approach |
2014 | 4 | Singer-Terhaar approach, Taylor rule, ability to service debt |
2013 | 5 | Cobb-Douglas function, Fed and Yardeni model. |
Note: Solution makes a reference to the BRICS reading which has been removed; however, the concept is still valid | ||
2012 | 5 | Survivorship bias, regime change and appraisal data, purchasing power parity and capital flows, H-model, Tobin's q |
2011 | 4 | Cobb Douglas, H Model, Fed Model, Yardeni Model |
Asset Allocation Questions from the 2009 – 2015 Essay Exams | ||
2015 | 9 | Executing forward trade, selecting appropriate options trade. Note: Part A is not relevant |
2014 | 8 | Expected utility, Roy's safety-first criterion Note: Part C & D are not relevant |
2011 | 5 | ALM, Black-Litterman, resampled frontier, Monte Carlo |
2010 | 5 | Strategic asset allocation using mean-variance optimization. Note: Part D & E are not relevant |
2009 | 6 | Strategic asset allocation, whether investments are suitable |
Fixed Income Questions from the 2011 – 2015 Essay Exams | ||
The Fixed Income Questions from 2011 – 2017 are not relevant for 2019 Level III CFA Examination, because FI readings of previous years were replaced by new readings in 2018. | ||
Alternative Investment Questions from the 2009 – 2015 Essay Exams | ||
2015 | 4 | Real estate Indices, direct real estate inv. vs publicly traded equity inv, |
performance fee for hedge funds, J-factor risk, investment lock up period. | ||
Risk Management and Derivatives Questions from the 2009 – 2015 Essay Exams | ||
2015 | 6 | Calculate amount at risk of credit loss, payment netting with a single counter-party, reducing credit risk. |
2015 | 6 | Calculate amount at risk of credit loss, payment netting with a single counter-party, reducing credit risk. |
2015 | 6 | Calculate amount at risk of credit loss, payment netting with a single counter-party, reducing credit risk. |
2015 | 6 | Calculate amount at risk of credit loss, payment netting with a single counter-party, reducing credit risk. |
2015 | 6 | Calculate amount at risk of credit loss, payment netting with a single counter-party, reducing credit risk. |
2015 | 6 | Calculate amount at risk of credit loss, payment netting with a single counter-party, reducing credit risk. |
2015 | 6 | Calculate amount at risk of credit loss, payment netting with a single counter-party, reducing credit risk. |
2015 | 6 | Calculate amount at risk of credit loss, payment netting with a single counter-party, reducing credit risk. |
2015 | 6 | Calculate amount at risk of credit loss, payment netting with a single counter-party, reducing credit risk. |
Trading Questions from the 2009 – 2015 Essay Exams | ||
2014 | 10 | Note: Part A and Part B are not relevant |
Part C covers VWAP algorithm and implementation shortfall algorithm. | ||
2012 | 3 | Part A covers criteria of market quality. |
Part B covers algorithmic participation strategy. | ||
Note: Part C is not relevant | ||
2010 | 8 | Note: Part A and B are not relevant |
Part C covers trade execution tactics. | ||
Part D covers missed trade opportunity cost. | ||
Performance Evaluation Questions from the 2010 – 2015 Essay Exams | ||
2015 | 5 | Outperforming pure indexing strategy, decomposing return into style bias and active management, time weighted return, pure sector allocation return, within-sector selection return. |
2013 | 11 | Part A covers style and active return. |
Part B covers risk-adjusted performance. | ||
Part C covers manager continuation decisions. | ||
2011 | 9 | Performance attribution, sector allocation returns. |
2010 | 9 | Selection of benchmark index, active value addition. |