Free CFA® Level 3 Exam Questions and Answers
Part of CFA — Chartered Financial Analyst — see every part of the exam.
CFA® Level 3 is one of the Test Prep tests covered here. These are standardised tests from different organisations rather than one programme — the Praxis series for US teacher licensure is awarded by ETS, and admissions and licensure tests alongside it come from other bodies entirely, each with its own format and scoring.
Candidates comparing CFA® Level 3 exam dumps, ExamTopics and other practice tests use this page for the answers and explanations behind each question. Download the free PDF, then sit the timed exam simulation before booking with Test Prep.
Last updated: September 28, 2026
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Question #7
A client wants to invest passively in a low-cost index fund. What should you explain about this investment strategy?
Correct answer: B
Explanation
While passive investing is cost-effective, it does expose investors to market risk, including potential declines.
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Discussion
Explain your reasoning, not just the letterBrowse the free questions by topic
More CFA® Level 3 questions
- Question 1A portfolio manager is evaluating two securities: Security X has a higher return but also a higher volatility than…
- Question 2During a quarterly review, a client expresses concern about the underperformance of their bond portfolio. What is the…
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- Question 4An investor wants to pivot from fixed income to equities due to rising interest rates. What is a potential risk they…
- Question 5A pension fund is underfunded and facing long-term liabilities. What strategy might they consider to mitigate risks?
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FAQ
- Q1: What is the CFA® Level 3 exam?
- A: CFA® Level 3 is a Test Prep certification exam. Judging by the questions in our bank, it concentrates on portfolio, investor, investment, ratio and market.
- Q2: What topics does the CFA® Level 3 exam cover?
- A: Questions in our CFA® Level 3 bank cluster around portfolio, investor, investment, ratio, market, fund, bonds and retirement. Working through the full set is the quickest way to find which of these you are weakest on.
- Q3: How should I prepare for CFA® Level 3?
- A: Work through the CFA® Level 3 practice questions here, checking your answer on each one, then sit the practice test to rehearse the exam under timed conditions before the real thing.
- Q4: Are these real CFA® Level 3 exam questions?
- A: They are drawn from officially released past questions and from community members who have sat CFA® Level 3. Answers are verified and updated weekly.
- Q5: Where do I register for the CFA® Level 3 exam?
- A: Register through Test Prep directly. Exampractice is not affiliated with Test Prep and does not administer the exam.
- Q6: Is there a free CFA® Level 3 sample?
- A: Yes. Every CFA® Level 3 page shows a free sample of real questions. Upgrading opens the full bank and the practice test.