CFA exam format: Level I, Level II and Level III compared
The three CFA exams share a syllabus but not a format. Level I tests breadth with standalone multiple-choice questions, Level II tests application with questions built on case studies, and Level III adds written answers. Knowing the format of your level changes how you practise, so this guide sets out each one, using CFA Institute's published descriptions.
At a glance
| Level I | Level II | Level III | |
|---|---|---|---|
| Question type | Standalone multiple choice | Item sets | Item sets and essay sets |
| Size | 180 questions | 22 item sets, 88 questions | 11 item sets and 11 essay sets |
| Sessions | 2 of 90 questions | 2 of 11 item sets | 2, each 5 or 6 of each type |
| Time | 2 sessions of 135 minutes | 2 sessions of 2 hours 12 minutes | 2 sessions of 2 hours 12 minutes |
| Total time | 4 hours 30 minutes | 4 hours 24 minutes | 4 hours 24 minutes |
Each exam has an optional break between its two sessions. Every level may also include unscored items that are placed on the exam to gather statistical information. They are not identified, and they do not affect your score.
Level I: standalone multiple choice
Level I is 180 multiple-choice questions in two sessions of 90, and CFA Institute advises about 90 seconds a question. Each question has a stem, which is a question, a statement or a table, and three answer choices: A, B or C. There are two formats: sentence completion, and a direct question. Each stem supports only one question.
- Wording. Stems avoid "except", "true" and "false", and avoid "not" where possible. They use qualifiers such as "most likely", "least likely", "best described", "most appropriate", "most accurate", "least appropriate" and "least accurate".
- Answer choices. There is no "all of the above", "none of the above", "A and B only" or "cannot determine". Choices made of words are typically ordered from shortest to longest, and numerical choices from smallest to largest. Language common to all choices goes in the stem.
- Scoring. All questions are equally weighted and there is no penalty for a wrong answer, so answer every one.
Level II: item sets
Level II consists of 22 item sets, each a vignette with four multiple-choice questions, 88 questions in all. Each session has 11 item sets, and twenty of the 22 sets are scored while two are being trialled. You cannot tell which two.
Unlike Level I, the questions are not free-standing. You must answer from the information in the vignette, and refer back to it before each question. The topics are placed at random across the exam: any topic may appear in the first session, the second, or both. Each vignette begins with a statement of the topic and its total point value, for example "Quantitative Methods, 12 points".
Level III: item sets and essay sets
Level III has 11 item sets and 11 essay sets, each worth 12 points, with a vignette at the start of each. Item sets have multiple-choice questions. Essay sets have constructed-response questions, where you type your answers. Each session has either 6 item sets and 5 essay sets, or 5 item sets and 6 essay sets. Twenty of the 22 sets are scored and two, one item set and one essay set, are being trialled.
How essay questions work:
- Command words are bolded in the question stem, such as "Determine", "Explain" or "Discuss".
- You type into a text box. If more than one answer is requested, for example "Explain, with two reasons", a note asks for each in a separate paragraph. Bullet points are acceptable.
- Only the number requested is marked, in the order you give them. Anything beyond that is not evaluated, so do not pad.
- Calculations: a correct number typed on its own receives full credit, and formulas and explanations are not required. If you show your steps, or write out variables in an equation, you may be able to earn partial credit.
- Points per item are not disclosed. Each essay set has a variable number of items, each worth a variable number of points. An essay set may also use a multiple-choice question occasionally.
Using the format to prepare
- Level I: practise standalone questions under the clock, and learn the wording patterns so qualifiers do not slow you down. See how many practice questions to do.
- Level II: practise from vignettes, not isolated questions, because reading and extracting data quickly is a skill of its own.
- Level III: practise written answers, and read each question for exactly how many answers it asks for.
See also how long the exam takes and the exam-day rules, and the Level I syllabus.
Common questions
How many questions are on the CFA exam?
Level I has 180 multiple-choice questions. Level II has 22 item sets of four questions, 88 in all. Level III has 11 item sets and 11 essay sets.
How long is each CFA exam?
Level I is 4 hours 30 minutes, in two sessions of 135 minutes. Levels II and III are 4 hours 24 minutes, in two sessions of 2 hours 12 minutes. Each has an optional break.
Does the CFA exam have negative marking?
No. All questions are equally weighted and a wrong answer costs nothing.
Are CFA Level III answers typed or handwritten?
Typed. Essay responses go into a text box that accepts typed words and numbers.
Sources
- CFA Institute, The CFA Program: the exam format for each level, the question structure and the essay marking guidance.
Formats change between years. Check the current candidate information on the CFA Institute website.