Level III tips(1)

venson

Failed L3 - any suggestions?
Author: preacherman
Date:   Tuesday, August 12 @ 8:27 pm

Congrats to everyone who passed: I answered Richard L with the same message.

unfortunately I failed L3, and by the looks of the postings on this site I think I am the only one. L3 is my white whale. I passed L1 and L2 on the first try and this was my third shot at L3. My first time around I really was not prepared, I was working too much. Which was a shame because it was not a hard exam.

The second time was last year - I just used the Schweser notes and I studied enough but I still didn't feel prepared after I left, I needed more than the notes. This time I studied the FAR notes and I did a lot of the readings, especially the fixed income and quant stuff which I knew cold.

I have always done well in school classes getting top grades in difficult math and engineering classes. I really felt I understood the stuff. The questions I have the most trouble with are the Portfolio Management questions. These questions have a lot of unessessary information, if I read it fast I make mistakes and if I read it slow I run out of time. I don't think I finished the morning session of any of the L3 exams I took. This year I left one or two questions blank and last year it was three questions.

If I decide to take it again, I think I will need to do a lot of practice questions. Does anyone know a good provider of test type questions for L3 that has a lot of questions. Modus advertised 10,000 test questions that cover all the material in the readings - but I am a bit of a skeptic at this point. Does anyone know these guys. I heard that Pass Pro has a lot of questions but there are a lot of mistakes for L3 and I dont know the quality of the questions.

Any other suggestions would be greatly appreciated.

venson

Re: Failed L3 - any suggestions?
Author: Coterra
Date:   Tuesday, August 12 @ 9:05 pm

Preacherman,

Try not to let this deter you; perseverance is the key here. The best mode of attack for the upcoming year would to focus on areas where you are weaker (<50% grade).

This may sound cheesy but while studying try to rise above the idea of just passing the exam and learn the material; this should give you a deeper understanding.

Unfortunately you are correct on the extraneous amount of information given on PM questions (it appears that points are awarded those who skim over the material and answer the relative question). The key to those questions appears to be to reiterate the obvious (35 yr old - a long time horizon, high risk tolerance, and so on...).

Stick with it my man; it's just another year.

Cheers,

venson

Re: Failed L3 - any suggestions?
Author: nycguy
Date:   Wednesday, August 13 @ 2:06 am

preacherman... my suggestions are:

1. Try to force yourself to complete the morning session questions. It's possible the questions you did not finish made the difference. What I did this year was to immediately look at all of the questions very quickly as soon as the exam began, and I did some relatively easy, small point questions first. These questions were near the end of the am question set and if people did not complete these, they missed easy points. I also tried to budget my time to no more than the number of points for each question. If you finish the am questions you can very easily add 20 or so points to your result. My feeling is the reason people don't finish is they spend too much time on the big portfolio management questions which are usually 1, 2 in the sequence.

2. On the portfolio management questions, you have to do a lot of practice questions from previous AIMR exams. Try to do some of these under the appropriate time pressure. As you do these, you should be able to develop an approach that allows you to quickly focus in on the most relevant info... underline this and keep reading. If you train yourself to work quickly, there is no reason you can't do ok on these questions. Anticipate that AIMR will develop questions designed to take you off track, and make answering some of the parts very difficult. Just try to stick to your battle plan, and if necessary make assumptions that allow you to show you know how to do this stuff. Also don't make the same mistake I did and assume there won't be an insurance company question. I spent very little time prepping for that and I really bombed that stuff.

I heard about a former AIMR grader who was available in NYC to specifically prep L3 candidates on essay questions. He was too expensive for me. You might check with Figov on this, I believe he will do it also.

venson

Re: Failed L3 - any suggestions?
Author: Range
Date:   Wednesday, August 13 @ 3:38 am

Preacherman,

It appears from your post, though you don't mention how you did in pm section, that you had a prob with speed and the only way how to get around this, I think, is to do lots of practice questions, just as you note yourself.

I also had passed L1 and L2 on first attempts and did L3 for the 3rd time. This year I got a break. A year before I missed 2 questions in am section as well and had hard time in pm section due to time shortage but this year I did a lot of practice questions from Schweser disc and it was a way better.

venson

Re: Failed L3 - any suggestions?
Author: john UK
Date:   Wednesday, August 13 @ 4:04 am

Preacherman,

dont give up, sit the exam next year!!!

Our study group had the following strategy:

- Have a top score in ethics, Quant and AL

- Dont focus too much on old (PM) questions... even if this may sound strange... the older the questions the greater the risk that they relate to LOS, which arent relevant any more...
and this will only lead to confusion and destroys self-confidence
- stick to the basic structure within PM (individual and insti) and give them the clear and most important topics already mentioned above (35 yr old - a long time horizon, high risk tolerance, and so on...). If calculation seems to be to difficult, show some educated guess (I did this this year concerning the cashflow of this old lady and the child...)

IMPORTANT
- start with the constraits section, even if they tell you you shouldn't since those are the much easier and faster points and they allow you to get a better feeling for the objectives...
IMPORTANT
- partial credit is the key ... in any area
- dont loose in the morning session and win the game in the afternoon

- below is our checklist for Institutionals (Convert it in Excel)

good luck for next year!!!!!!!!

venson

Re: Failed L3 - any suggestions?
Author: dizzy
Date:   Wednesday, August 13 @ 5:47 am

I also flunked L3 this year

53.3% according to 40/60/80.

I absolutely bombed the PM questions and fixed income. I knew my responses weren't perfect, but I was surprised by how poorly I did. I think poor time management and lack of practice did me in, and boy do I regret it.

I passed L1 the first try and L2 the third try.

It'll be tough going into the office later today, especially with the pass rate being so high.


Re: Failed L3 - any suggestions?
Author: betsy
Date:   Wednesday, August 13 @ 7:02 am

Dude,

I'm feeling your pain. This was my 2nd time to take 3 and fail after passing 1 and 2 the first time around. I have no suggestions as I felt I knew the material cold but failed to perform - got bogged down in 1 or 2 essays, then in the afternoon screwed up on a section that I spent too much time on, realized it toward the end, but it was too late. Oh yeah, and when I cleared my calculator right before the afternoon session, the settings went back to default w/ only 2 decimals and I had forgotten how to change it back. Really threw me off and I'm sure made a difference with some calculations by the look at my scores. Still, scored 55.8% according to the 40/60/80 rule and passed ethics. Anyway, the wound is still raw. All I have is sympathy. I didn't feel like I could've been much more prepared than I was going in. The b@stards. I felt absolutely raped at the end of that exam.

Betsy

venson

I am in the same boat as you my friend, and just looking to blow off some steam before i can think rationally again--i took level 3 for the third time as well and for the third time did better on multiple choice than i did in the morning session; 42% morning and 62% evening using the 40/60/80 approach.

any specific suggestions on approaching portfolio management questions; how long should each answer be (i used 1 line per point as a guide); bullets versus paragraphs; calculations versus qualitative observations; how can you differentiate your answer from that of your neighbor?



Re: Failed L3 - any suggestions?
Author: Chi-Town
Date:   Wednesday, August 13 @ 10:59 am

Betsy:

I know exactly how you feel... This was my second time at level III and I failed again. Unlike the year prior, I also new the material, yet my execution on exam day was very poor. Not only did I change 7 correct answers in the afternoon on my second pass through, but I realized I had 2/3 of the morning to go with an 1.25 hours left (my countdown timer stopped).

I really think that the afternoon is where you pass or fail. Go with your gut. I also agree with the post about stating the obvious in the PM question. Right now, with my tears sitting just below the surface, though it's hard to think about another spring being lost.

venson

Re: Failed L3 - any suggestions?
Author: Alec
Date:   Wednesday, August 13 @ 11:03 am

Chief,

The CD's are $80.00 delivered. What's your e-mail address?

Alec



Re: Failed L3 - any suggestions?
Author: Finally
Date:   Wednesday, August 13 @ 11:15 am

1st post, for what it's worth. This site is like a car wreck. I'm annoyed by so many posters but I have to keep looking.

My keys to passing:
1.) Learn to hate AIMR. Remember they are they enemy. Don't let them beat you. Get mad. Let it motivate you. I failed Level I twice, took off a few years and then passed 3 consecutive years.
2.) Spouse or significant other has to buy into it - My wife was a single Mom from Jan to May these past 3 years with 3 kids. She understood how imporant it was for my job. I was lucky. In fact, she would be on me to study.
3.) I used Schweser notes, Schweser test bank and Schweser CDs in the car and borrowed 2002 Schweser videos for Level III. Do as many questions as you can toward the end. Started studying in January. I bought the texts and didn't open them as I had all I could do to cover the notes. I would study at lunch (my firm was very supportive) and 2 hours at night. On weekend 5 hours a day moving to 8 hours a day in last 6 weeks.
4.) Score over 70% on ethics. I had 13 sections at 50% or below, 2 sections 50%-70% and 4 sections above 70%. I actually can't figure out how I passed.
5.) Take off last week before test and immerse yourself. Avoid anything that distracts you. It took over my life.
6.) Have your mother-in-law say rosaries and novenas. You may laugh but I'm not discounting anything.
7.) Take test at a smaller test center. I took test in RI and virtually everyone in my test room was from Massachusetts. Less distracting and less stressful environment.
8.) Don't get burned out early, keep on a schedule but don't over do it. I needed it for the final big push.
Not to pontificate but don't give up. I was a finance major with a B- average at a Big East school so you can do it. Luck plays a part. The test throws you some questions which are your strengths and skips some areas where you're weak. Get mad.

venson

Re: Failed L3 - any suggestions?
Author: TheGuru
Date:   Wednesday, August 13 @ 11:39 am

My advice is to use the textbooks and do the questions at the end of the relevant chapters. The Fabozzi and Quant books have excellent questions which are stylistically similar to what could appear on the Level III Exam. Good luck.


Re: Failed L3 - any suggestions?
Author: pocahontas
Date:   Wednesday, August 13 @ 11:43 am

I think it's hard to do well on the morning section, at least on the more subjective questions, so one should really try to nail down the afternoon section.

Studying the end of chapter questions from the textbooks, and going over the past AIMR exam questions are key, as well as doing as many mock exams as possible.

Not a great fan of reading the texts, especially if you are time constrained.


Re: Failed L3 - any suggestions?
Author: 2times
Date:   Wednesday, August 13 @ 12:02 pm

Oh man,

If I had passed ethics I likely would have passed the exam, this is unbelievable.


Re: Failed L3 - any suggestions?
Author: Ryan J.
Date:   Wednesday, August 13 @ 12:06 pm

Chi-Town,

Hang tough buddy. I'm about to become a lowly Level II candidate, so I can only imagine how much work you've already put into this program. That said, all that work WILL NOT go unrewarded. You can and will pass Level III and your victory will be all the more sweeter having faced down the challenges and disappointments along the way.

For what it's worth and I'm sure you've heard this, but it's true,

"that which doesn't kill us makes us stronger"

While the CFA program comes close to killing us, it definitely makes us stronger.

Ryan


Re: Failed L3 - any suggestions?
Author: Riff
Date:   Wednesday, August 13 @ 12:32 pm

To all who failed Level 3...

I truly feel your pain - having finally passed on the third attempt, I can honestly say level 3 is the most grueling of the three exams. The funny thing is that I failed all the policy questions yet I write policy statements for individual clients frequently - whats up with that? The test is bullpucky and AIMR knows it.

As for suggestions, here is my two cents in order of priority:

1. KNOW ethics cold. Read the handbook and casebook - all topical readings as well. On test day always go with the most conservative answer (i.e. full disclosure). I was borderline with 54.7% - ethics was the only >70% in the afternoon - might have been the difference.

2. Rely on Schweser for complex material - derivatives, fixed income, etc. Attempt to read the candidate readings - I actually caught a break re-reading Alternatives-hedgefunds the night before- LUCKY

3. Don't try and learn everything. I saved time by ignoring derivates and parts of quant. Hammer the things you know.

4. Make your own notes - this is critical. I found just writing my notes helped my retention. Surprisingly, my recall was pretty good (for a change). In the past, I had relied on Schwesers flashcards.

5. Finally, it doesn't matter if you get 90% or 54.7% - just pass baby.

Good luck next year - Get back in the PIT - took me 8 long years to pass all three exams. Life gets in the way, but plug on people.

Riff