EASE INTO PREP WITH A QUESTION EVERY DAY

Answer the question below and see how ready you are for the CFA Level III Exam. We'll explain the correct answer to help you understand the exam concept.

A little daily practice goes a long way.

CFA Level III Practice Question for June 6th
276 Answers Today

An analyst is backtesting a quantitative investment process which investigates the relationship between EPS announcements and subsequent month stock returns. The analyst notes that one specific company in the universe frequently revises earnings - for example 2017 EPS was initially announced in March 2018 as $2 when the market expected earnings of $2.10. These 2017 earnings were subsequently revised down to a loss of $1 per share in June 2018 due to accounting fraud coming to light. In order to avoid look ahead bias, when backtesting the performance of the stock in April 2018, the manager should use an EPS value of:

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Find more Level III practice questions in Kaplan Schweser's Level III SchweserPro™ QBank and on our blog with a sample Level III constructed response question.
Yes, Level II Exam questions are challenging and are meant to test your knowledge of the latest CFA Level III curriculum. If you find yourself feeling exam practice questions are too difficult, revisit the answer explanations to pinpoint the concept you are struggling with.
You will have to exhibit your algebra skills and formula calculations using the TI BAII+ calculator when answering Level III Exam questions. In your constructed response answers, you’ll have to justify the underlying goal or objective when using a formula or hedge rather than just crunching the numbers.
The challenge with the Level III Exam is mastering constructed response answering techniques and finishing the exam on time. Answering lots of practice questions and taking multiple mock exams is the best way to make sure you are prepared for the exam.
Level III Exam pass rates change multiple times per year and are historically higher than Level II and Level I.
Candidates get six attempts to pass the Level III Exam. You are also only allowed to take an exam up to two times per calendar year and cannot take the exam in windows that are less than 6 months apart. If you end up failing, start by evaluating your study plan and mock exam scores and look for improvements you can make for next time.
Each Level III Exam window has a rescheduling date. If you miss the deadline, you may be able to request a deferral and pay to postpone your scheduled exam date.
You should take no less than six Level III mock exams but the exact number of mock exams every candidate should take will vary depending on their knowledge base and scores.
Question: 9/16/20
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