Level II of the CFA exam comprises of item set questions. Each item set consists of a case statement, also called a vignette, and four to six multiple-choice questions. Thus, there’s a total of 88 items multiple-choice items, equally split between the morning session and the afternoon session.
The Level III CFA exam is offered twice a year. The afternoon session, which is similar to the Level II exam, includes item set questions. Each item set has 6 multiple-choice questions and there are 10 item sets in total.
The unusual part of the Level III exam is the morning session, in which candidates have to write answers in essay format. The essay format part consists of 8 to 12 questions and each question has two or more sub-parts.
Unlike other CFA exams, the curriculum for level III focuses mainly on portfolio management and wealth planning. Topics such as Quantitative Methods, Economics, Corporate Finance, Financial Reporting and Analysis have been removed from the curriculum. Ethics, Alternative Investments, Derivatives, Equity Investments, and Fixed Income topics mostly preserve the weightings they were assigned in previous exams. Meanwhile, Portfolio Management and Wealth Planning topics weightings now comprise 45%-55% of the Level 3 exam.