A final-revision summary for CFA Level III. Study aid only — no notes in the proctored exam (an approved calculator is permitted).
The format
Constructed-response (essay) questions plus item sets, across two sessions. For essays, answer exactly what is asked, concisely — padding earns nothing.
The IPS: objectives and constraints
| Element | Captures |
|---|---|
| Return objective | The required and desired return |
| Risk objective | Ability and willingness to take risk |
| Liquidity | Near-term cash needs |
| Time horizon | Single or multi-stage |
| Taxes | The client’s tax situation |
| Legal / regulatory | Any constraints that apply |
| Unique circumstances | Anything else specific to the client |
Key ideas
Strategic vs tactical asset allocation · rebalancing to target weights · liability-driven and goals-based investing · behavioural biases (loss aversion, overconfidence, anchoring) · performance vs benchmark · the 2025 pathways (Portfolio Management, Private Markets, Private Wealth).
The Code and Standards (ethics)
Seven Standards of Professional Conduct, applied here to advisory and portfolio situations. Ethics can decide a borderline result.
Exam-day reminders
Two sessions (essay + item sets) · write concise, on-point answers · master the approved calculator · manage time strictly per question.