Free CFA Level 3 Mock Exam: 40 Practice Questions, Full Answers, and Analytics

CFA Level 3 Mock Exam: Candidates for the CFA Level 3 test can take advantage of our brand-new, free CFA Level 3 mock exam, provided by our partner IFT, as practicing questions is one of the finest learning methods.

This practice test has 44 questions, is 2 hours and 12 minutes long, and is weighted in accordance with recommendations from the CFA Institute. This is a legitimate mock test because it uses the identical item set and vignette style as the afternoon portion of the actual CFA Level 3 exam, as opposed to separate question-bank-type questions.

You can take the test online or download the questions in PDF format, complete with detailed explanations and analytics, for free. Following the online submission of your answers, you’ll receive an immediate individualized test result report, thorough answer explanations, and a comparison of your responses.

Exam Details for Mock

What’s included in the online Schweser mock exam is a trio of modes

  • Exam Sim: Use the same interface that you will on the computer-based CFA exam to take the test.
  • Online: Use the regular Kaplan Schweser online interface to take the test.
  • the four hours and thirty minutes set by CFA Institute (each exam consists of two sessions of 2 hours 15 minutes)
  • Topic weightings and exam structure for CFA Institute
  • Online explanations for answers
  • Online evaluation, topic-area performance tracking, and candidate comparison
  • For each question, provide LOS references in your answer justifications.
  • Exam Tutorial is only offered for Mock Exams 5 and 6.
  • Instructional videos that go into great detail about how to reach each answer

Mock Exam Options:

  • There are four different sets of questions in each of the four mock exams, each of which allows for three attempts.
  • Six different sets of questions with three tries each make up the mock exams from 1 to 6. The exam instruction is included in Mock Exams 5 and 6.
  • Two distinct sets of questions with three attempts each are on Mock Exams 5 and 6. The exam instruction is included in Mock Exams 5 and 6.
  • The system permits three tries for each mock exam. Once an exam has started, exam modes cannot be changed.

Guidelines for an Online Mock Exam

You can access the online Schweser mock exam through exam day using your Online Access Account. You will receive a link to the Online Schweser Mock Exam Instructions PDF, which contains crucial information on how to access your exam and what to do when you pass it.

Sample Papers

CFA sample papersPDF
CFA level 3 essay questionsClick here for the pdf
CFA Level 3 item set questions
CFA Level 3 essay guidelines

Exam pattern

Type of questionsMultiple-choice questions
Marking schemeNo negative marking
Duration of exam4.5 hours
SessionsMorning and afternoon session
Medium of examEnglish

Free CFA Level 3 Mock Exam: 40 Practice Questions

CFA Level 3 Mock Exam
  1. Which of the principles is inconsistent with the Asset Manager Code of Professional

    A. Principle 1.
    B. Principle 2.
    C. Principle 3.
  2. Which of the principles is inconsistent with the Asset Manager Code of Professional

    A. The risk management process.
    B. Portfolio information.
    C. Business-continuity plan.
  3. Which of Nathan’s client service policies is consistent with the Asset Manager Code of
    Professional Conduct?

    A. Performance reports frequency.
    B. Complete, accurate disclosures, including complex calculations.
    C. Conflicts of interests’ disclosures.
  4. Are the firm’s disclosures regarding management fees consistent with the required and
    recommended standards of the Asset Manager Code?

    A. Yes.
    B. No, because the average or expected expenses or fees clients are likely to incur are not
    C. No, because complicated language is used.
  5. The economic forecasting approaches Jaffer and Arnaud most likely use are:
    A. checklist approach and LEI.
    B. reduced-form models and checklist approach.
    C. structural models and LEI.
  6. Which of the following biases does Wu exhibit?
    A. Status quo, confirmation, overconfidence.
    B. Prudence, availability, look-ahead.
    C. Survivorship, time period, availability.
  7. Regarding the effect of the “horizon structure” of inflation on various assets, which of Jaffer’s
    notes is least likely correct?

    A. Note I.
    B. Note II.
    C. Note III.
  8. If the Eurozone country’s central bank responds with a reaction function based on the Taylor
    Rule and correctly calibrates the policy rate, which of the following will most likely occur?

    A. Short term rates will fall faster, but growth and inflation may decline less.
    B. Short term rates, growth and inflation will decline rapidly.
    C. Short term rates will fall rapidly but growth and inflation rates will remain steady.
  9. Which of the following behavioral bias is most likely demonstrated by Mrs. Wentworth?
    A. Conservatism bias.
    B. Confirmation bias.
    C. Availability bias.
  10. Which of the following behavioral bias is most likely demonstrated by Jack Black?
    A. Illusion of knowledge bias.
    B. Self-attribution bias.
    C. Hindisight bias.
  11. Which of the following bias(es) did Henry Tillman NOT demonstrate?
    A. Anchoring and adjustment bias.
    B. Status quo bias.
    C. Endowment bias.
  12. Which of the following is not a typical consequence of mental accounting bias?
    A. Allocating funds to different ‘buckets’.
    B. Neglecting to focus on total return and total risk.
    C. A higher risk profile in the portfolio due to pursuit of higher returns.
  13. In Shah’s portfolio optimization proposals, which model inputs may be used with no

    A. Correlation of returns.
    B. Expected returns.
    C. Standard deviation of returns.
  14. Based on Exhibits 1 & 2, a significant reduction in the high-yield (HY) bonds’ in the after-tax
    asset mix may be because of:

    A. lower income returns of the HY bonds.
    B. heavier tax burden imposed on HY bonds.
    C. lower correlation between HY bonds and IG bonds.
  15. Based on Exhibits 1 & 2, a higher allocation to investment-grade (IG) bonds in the after-tax
    asset mix may be because of:

    A. lower income returns of the IG bonds.
    B. lower risk than HG bonds and lower correlation with equity.
    C. higher correlation with HG bonds than equity.
  16. Given its funding objectives, which asset allocation is most appropriate for Minerva’s
    defined-benefit pension plan?

    A. Allocation 1.
    B. Allocation 2. C. Allocation 3.
  17. Regarding discretionary TAA, Shah is least likely correct with respect to:
    A. Comment 1.
    B. Comment 2.
    C. Comment 3.
  18. Regarding the immediate tactical asset allocation demand, the behavioral bias most likely
    exhibited by the client is:

    A. Loss aversion.
    B. Home bias.
    C. Representativeness bias.
  19. Following the discussion between Johnsons and Connors and Note 1, Connors is most likely
    to recommend to Mike to increase his exposure to:

    A. risk-free assets.
    B. risky assets.
    C. lifetime insurance.
  20. Considering the discussion and Note 2, Connors is least likely to recommend which of the
    following investments to Sara?

    A. Equities.
    B. Bonds.
    C. Life insurance.
  21. Which of the following statements best answers Sara’s question about life insurance and her

    A. Life insurance and her job have a similar payoff.
    B. Life insurance is a perfect hedge for her human capital in the event of death.
    C. Her need for life insurance increases as she gets closer to retirement.
  22. An advanced life deferred annuity (ALDA) would provide the greatest supplemental level
    income relative to the cost because:
    A. it involves the permanent exchange of a lump sum for an insurance contract that
    promises to pay an income in a down market.
    B. payments begin later when life expectancy is shorter, and some policyholders will die
    without receiving payments. C. it provides many potential investment options for an individual to choose from in exchange for a lump sum of money today.
  23. Which of the following strategies should Connors recommend to Hendricks?
    A. 100% stocks, 0% bonds
    B. 70% stocks, 30% bonds
    C. 10% stocks, 90% bonds
  24. One month ago, Benton most likely sold:
    A. ARS 14,500,000 forward at an all-in forward rate of ARS/USD 8.7229
    B. ARS 15,000,000 forward at an all-in forward rate of ARS/USD 8.7334
    C. ARS 15,000,000 forward at an all-in forward rate of ARS/USD 8.7074
  25. To rebalance the hedge today, the firm would least likely need to:
    A. buy ARS 500,000 forward.
    B. engage in a mismatched FX swap.
    C. sell ARS500,000 forward.
  26. The roll yield on this hedge at the forward contracts’ maturity date is most likely to be:
    A. positive
    B. negative
    C. zero
  27. The expected domestic currency return RDC on the equally weighted foreign-currency asset
    portfolio is closest to:
    A. 8.2%
    B. 8.5%
    C. 7.9%
  28. The expected risk σ(RDC) of the equally-weighted portfolio is closest to:
    A. 6.8%
    B. 6.3%
    C. 7.1%
  29. Based on Exhibit 1, the total expected return of the international bond portfolio is closest to:
    A. 2.74%
    B. 2.48%
    C. 2.10%
  30. Which approach to its total return mandate is the domestic bond portfolio currently using?
    A. Enhanced indexing.
    B. Active management.
    C. Pure indexing.
  31. Based on statement 2, the IC is most likely recommending which approach for its domestic
    bond portfolio?
    A. Enhanced indexing.
    B. Active management.
    C. Pure indexing.
  32. Alternative 1 is least likely superior to Alternative 2 for:
    A. providing diversification.
    B. hedging inflation.
    C. providing funding for future liabilities.
  33. Which of Stevens’s statements is least likely correct regarding adding convexity?
    A. Statement 3.
    B. Statement 2.
    C. Statement 1.
  34. Based on Exhibit 2, the optimal strategy for SPF for meeting its cash requirements is the sale
    A. Bond A.
    B. Bond B.
    C. 60% of Bond A and 40% of Bond B.
  35. Which of the following statements is least likely correct regarding the dividend income of
    Fund RY?
    A. RY attracts investors who are not typically growth-oriented. B. RY promotes the stability of dividend returns over shorter and longer-term relative to capital gains. C. RY considers the taxation of investors when reinvesting dividends.
  36. Fund BX’s approach to investing in companies that promote energy-efficient products is best
    described as:

    A. positive screening.
    B. impact screening.
    C. thematic investing.
  37. Fund BF is most likely to appeal to investors who prefer:
    A. actively managed equity portfolios.
    B. passively managed equity portfolios.
    C. approaches that “demand liquidity” from the market.
  38. The fee described in Observation 3 is most likely a:
    A. management fee.
    B. performance fee.
    C. marketing/distribution fee.
  39. Which of the statements regarding Fund VA is most likely correct?
    A. Fund VA is segmented by geography and size.
    B. Adding investment-grade bonds will lower the short-term risk of Fund VA.
    C. Fund VA follows a market-oriented approach.
  40. Which of Stone’s statements regarding stock lending is NOT correct?
    A. Statement 1.
    B. Statement 2.
    C. Statement 3.
  41. Which of the benefits or limitations of the risk-based approach is least accurate?
    A. The risk-based approach provides investors with an integrated risk management
    B. The risk-factor estimation may be sensitive to the historical sample.
    C. The risk-factor approach may result in over-estimation of portfolio diversification.
  42. Based on the current asset allocations, the total next 12-month liabilities of the fund are
    closest to:
    A. $50 million.
    B. $114 million.
    C. $160 million.
  43. The sources of immediate liquidity for the fund are most likely:
    A. cash and equities.
    B. cash and government bonds.
    C. cash and government bonds.
  44. Given the consultants’ next 12-month outlook and based on Exhibit 2, the tactical asset
    allocation Chandran could most likely suggest is to:
    A. increase cash and private equity allocations.
    B. decrease hedge funds and public equities allocations.
    C. increase hedge funds and public equities allocations.


Can I take the Level 3 exam again if I fail it?

Yes, applicants may repeat the exam by registering again within six months of the original exam date and paying the registration cost.

Can the CFA® level 3 exam date be changed?

No, the exam date cannot be changed, although students may choose to push back their personal appointment to the next term.

When will the CFA® Level 3 examinations be held in 2021?

The tests will be given in May and November of 2021.

How would the CFA level 3 practice exams aid you in the test?

The CFA® level 3 2021 old papers might help you comprehend the exam’s structure, question types, and degree of difficulty.

Will the curriculum for CFA level 3 in 2021 alter in any way?

No, the CFA Level 2 curriculum for 2021 will not change from that of 2020.

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