CFA Exam Tips: Writing Clear Level 3 Essay (Constructed Response) Answers

4 Apr 24

Insights from Nathan Ronen, CFA

Hey, everybody! Nathan Ronen, CFA here, with a last-minute update for CFA® Level III (“Level 3”) candidates gearing up for their CFA Level 3 exams. Whether you're feeling the last-minute study heat or gearing up for an exam many months in the future, these tips can be invaluable. If you find these updates helpful, hit the subscribe and notifications button on our YouTube channel to stay in the loop!

While grading my students’ CFA Level 3 essay (aka “constructed response) questions, I noticed some common pitfalls that CFA candidates often encounter. Here are some key tips to ensure your success on the CFA Level 3 exam’s constructed response portions:

  1. Clarity is Key: Don't make the grader infer anything. Clearly state, for example, whether you are buying or selling, and avoid leaving any room for ambiguity. If the question involves a transaction, explicitly state your position.
  2. Numeric Precision: Pay attention to numeric precision. If the answer requires a percentage, make sure to include the percentage sign. Avoid leaving it out, as it can lead to misinterpretation. For instance, 0.045% and 4.5% are vastly different.
  3. Justify as Requested: If the question asks for two reasons or justifications, stick to two. Avoid providing more answers than required or going into excessive detail. The grader is looking for concise, relevant information.
  4. Bullet Points or Numbers: Clearly delineate your answers with bullet points or numbers, making it easy for the grader to follow your response. This enhances readability and ensures your points are not overlooked.
  5. Answer Precision: Answer only what is required. Going off on tangents or providing additional, irrelevant information won't earn extra credit. It actually risks backfiring on you without any upside. Stick to the question and provide clear, concise responses.

Remember, your goal is to align your answers with the grading key as closely as possible. Avoid unnecessary complexity or verbosity. If you're gearing up for an upcoming CFA Level 3 exam, consider leveraging my videos and mock exams at https://chalkandboard.org. Feel free to reach out if you have any questions. Wishing you the best of luck on your CFA Level 3 exam – may it be a pass that propels you to CFA charter success!

Nathan Ronen, CFA

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