Free Wiley Level 3 Mock - any takers?

CFA Level III Portfolio Management
#1

Hi All

I wanted to know if anyone has taken the free Wiley Level 3 Mock this year? Available at the below link.

If so, how did you find it? I just finished the AM yesterday and wanted to see how everyone found the the paper in terms of difficulty compared to how they think it will be on the day/past papers they have done.

https://www.efficientlearning.com/cfa/mock-exam/

Enjoy!

#2

Broken link

#3

How odd - link now updated?

#4

I scored a 70 in the AM and a 63 in the PM.

The PM was very challenging I felt, as was the whole paper tbh - felt pretty realistic though. Better then those garbage Schweser practice exams

#5

My AM score is 63.89%, 70% for PM.

I feel some mock answers are not corrects. But I still think it’s worth to do this mock. After finishing the PM, I think it is not worth to do this mock because there are a lot of errors.

  • AM:

Q5B : the answers of the point 1, 3 and 4 are quite arbitrary. I don’t know if the answers could be correct.

Q8C : The solution states: Optimal weights under a risk parity allocation would set the absolute contribution to risk of each asset class in the portfolio to be the same, not the marginal contribution to risk. (1)

(1) ACTRi = Constant = MCTRi *wi

But we know also that : The condition for optimal allocation is the ratio of excess return to MCTR is the same (and equal to the Sharp ratio). (2) (this statement is surely true)

(2) MCTRi = (ri - rf)/SharpP

​​​​​​​So, from ​​​​​​​(1)+(2) => wi * (ri -rf) = Constant (3)

The conclusion (3) is too strong and I have never seen this formula before and I doubt it is not correct. So, (1) may not be correct.

​​​​​​​ Q9B : the answer is arbitrary. I don’t know if we can say the curve is at the same time fattened and increased in curvature.

  • PM

Q22: The answer A is exactly the same as the answer B =))

Q25: The question asks to calculate the money duration (Duration * Value * 0.01 ) but the answer forgets the factor 0.01

Q43: the solution states: Direct real estate is likely to provide lower returns but higher levels of diversification (relative to REIT) when added to a portfolio of traditional assets. I think the opposite.

Q57: the answer is wrong. David has underperformed with regard to exposure to fundamental factors (-0.20 with telecommunication -0.26)

#6

Hi Pierre,

There was loads of errors I noticed too.

In the morning paper they give two large cap growth indices and ask if the returns based analysis holds - clearly it does not. However it seems to be a typo with the last one supposed to say Value.

I sent them a pretty stroppy email - it’s simply not good enough to release a paper so close to exam day riddled with errors.

#7

For the afternoon question 28. When they use the liabilities of 40 million, shouldn’t they use the PV of 40 mill, that is 40 mil/1.05^8??

#8

Compared to REIT, does direct real estate provide

  • lower return?
  • higher level of diversification ?
#9

In a portfolio of stocks and bonds direct real estate investment gives you exposure to different risk factors and it is a good diversifier. Reits have advantages like being more liquid and so on, but they tend to be more highly correlated with equities than direct investment.

#10

Hi there I m having 1 doubt… isn’t this 2019 mock exam and not the 2020 updated one??
Kindly enlighten me on this!
Thanks in advance!