is level 3 easier than level 2?

E

escoleru

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
Many people said that level II is the most difficult among 3, however is it really true? If level 3 is more challenging than level 2 than I think I may have to quit the program, it’s already my 4th time taking level 2, so imagine another 4 years for level 3? No way!
 
all my charterholder frnds tell me L2 is toughest…
 
From what I’ve heard from charterholders, level 2 and level 3 are very different so it really depends on your strengths. L2 is valuation based and more mechanical, L3 is portfolio management and more qualitative. After 2 levels of multiple choice we’ll now be hit with essay questions which will be a new challenge.
I’ve also heard that there’s slightly less material for L3 so at least that’s something!
The view at work is that once you’ve nailed L2 you’ll breeze through the 3rd but 50% still fail so it really can’t be any easier than L2!
 
kgsgp wrote:
all my charterholder frnds tell me L2 is toughest…
Click to expand...
This was true years ago. L3 used to be a pushover from what I’m told myself.
L3 > L2
 
Level 3 was definitely a harder exam. Less stuff to memorize but if you dont know 100% of the curriclum, you’re likely fucked. On level 2, more memorization but you can memorize 2/3 very well and pass.
 
escoleru wrote:
Many people said that level II is the most difficult among 3, however is it really true? If level 3 is more challenging than level 2 than I think I may have to quit the program, it’s already my 4th time taking level 2, so imagine another 4 years for level 3? No way!
Click to expand...
You’ll get a different answer depending on who you ask. It’s all relative to what your personal strengths and weaknesses are.
 
I’m better at the qualitative piece rather than memorizing the mechanicals so I’d look more forward to L3. Probably didn’t cut it this year with 200hrs of study time though.
For the quant heavy types I’d imagine L2 is easier…engineers, academia…etc.
 
I prepared for L3 as if it were the toughest exam. I’m glad I did.
 
I studied hard for CFA Level II – and passed in the first go-around.
I studied just as hard (if not, harder) for Level III and did not pass last year.
The breadth of testable content is very wide for Level II; consequently, the questions on the exam are difficult but not as much as they could be. The subject matter for Level III is much more interesting to digest; as punishment for this “partial enjoyment”, the CFAI rewards us by making Level III a more difficult exam.
 
Level 2 is tough to pass.
Level 3 is harder than level 2 but less tough to pass because the pass rate is higher at around 50%. Mind you this rate is falling.
 
Dal wrote:
Level 2 is tough to pass.
Level 3 is harder than level 2 but less tough to pass because the pass rate is higher at around 50%. Mind you this rate is falling.
Click to expand...
pass rate is higher means nothing. Didn’t you study survivorship bias in L2 ??
 
itera wrote:
Dal wrote:
Level 2 is tough to pass.
Level 3 is harder than level 2 but less tough to pass because the pass rate is higher at around 50%. Mind you this rate is falling.
Click to expand...
pass rate is higher means nothing. Didn’t you study survivorship bias in L2 ??
Click to expand...
What are you talking about, itera? Dead L3 candidates who shouldn’t be accounted for in the CFA historical rates? CFA historical rates are the cleanest indicators… there are deviations each year, but they don’t count no shows, people who write half an exam, etc.
 
I have a strong corporate finance background and found 2 easier because of the heavy accounting, corp fin and equity sections. 2 is harder in the sense there are more calculations involved but the sections tend to be very independent, meaning you can still pass the exam despite being weak in say derivatives or Econ. Level 3 on the other hand requires you to know every topic and be able to tie everything together. I think people who say 3 is easier is because they hate or struggle with accounting but guys like me thought 2 was easier for the opposite reason.

Perfect example, when I had to look up a specific topic in 2 I knew exactly which book to pull. For 3 however I’d have to flip through 3 different books till I found what I needed. Why was that the case? The same topic shows up multiple times and the curriculum requires you to be able to apply all concepts in multiple scenarios.

3 has less formulas to memorize but requires you to have a mastery of all topics. Plus if English is not your first language the morning session can be tricky. 2 was easier to prepare for because you knew exactly what would be tested, 3 not so much because “less” topics but more angles CFAI could take. All in all both tests were hard on for different reasons.
 
A friend of mine got his charter after passing L3 last year. He told me he thought L3 was a walk in the park compared to L2. But I do think it depends on your strenghts. Another guy I know passed L1/L2 without failing and now failed L3.
Personally I think L3 is going to be harder for me. I came from an engineering background so plugging and chugging stuff given a shitload of formulas doesn’t seem that difficult. Essays for L3 though…that sounds pretty intimidating to me.
Regarding the essays, can someone give an example essay question? Is it something like “you’re trying to price a stock for a private company that doesn’t pay divs … and blah blah blah… explain how you would value this company and give reason to support your answer”?
 
i am sure L3 will be tougher. We hav to give proper respect . But lets first pass l2
 
cleverCFA wrote:
Regarding the essays, can someone give an example essay question? Is it something like “you’re trying to price a stock for a private company that doesn’t pay divs … and blah blah blah… explain how you would value this company and give reason to support your answer”?
Click to expand...
There are three years worth of essay questions on CFAI’s website. Those are the real exams–not examples.
And I’ve noticed that most people either have difficulty at Level 2 OR at Level 3, because the material is so different. Level 2 is about business valuation, accounting, financial statements, and corporate finance (with some Fixed Income and Derivatives thrown in just for good measure). Level 3 is all about Portfolio Management–how to manage a portfolio of equities, bonds, derivatives, alternative investments, and how to allocate assets given certain IPS objectives and constraints.
As you can see, the two levels are very dissimilar, and most people gravitate toward one or the other, because they probably do one or the other with their job. (EG - if you work in Corporate Development, you probably have zero use for 90% of the stuff they teach at Level 3.)
IMHO - as somebody who took Level 2 twice, and just finished Level 3, I think Level 3 was harder. This is borne out by the fact that 50% of all those who pass Level 2 will still fail Level 3. The test is more demanding (because of the nature of the essay portion), and the topics are all interwoven in such a way that you have to understand almost the entire curriculum. It isn’t easily segregated into different “pieces” like Level 2 is.
 
You must log in or register to reply here.
Back
Top