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Free CFA® Level 3: CFA® Level 3 Exam Questions and Answers

Last updated: April 2, 2025

Examtopics CFA® Level 3: CFA® Level 3 Prepaway Real Exam Questions and dumps free download

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651-CFA® Level 3: CFA® Level 3

#Question
A client expresses interest in investing in small-cap stocks. What is a primary risk they should be aware of?
A.
Guaranteed liquidity
B.
Limited growth potential
C.
Higher market volatility
D.
Lower dividends
#Question
An investment committee is reviewing the performance of their fixed income portfolio. What factor should they analyze closely?
A.
Inflation rates
B.
Current market trends
C.
Interest rate movements
D.
Company news
#Question
An investor is evaluating structured products. What is an essential consideration regarding returns?
A.
Guaranteed returns
B.
Stable interest rates
C.
High liquidity
D.
Complexity of product
#Question
A company plans to issue convertible bonds. What potential advantage does this present to investors?
A.
Lower default risk
B.
Potential capital appreciation
C.
Immediate income
D.
Fixed interest rate
#Question
A financial advisor suggests a conservative growth strategy for a client. What investment types might be included?
A.
High-risk tech stocks
B.
Balanced mutual funds
C.
Commodities
D.
High-yield junk bonds
#Question
An analyst evaluates a firm that has a high dividend yield but a low payout ratio. What does this suggest?
A.
Unsustainable dividends
B.
Strong earnings potential
C.
Increased risk of price volatility
D.
Poor cash flow management
#Question
A portfolio manager is considering an investment in emerging markets. What risk should they prioritize?
A.
Fluctuating demand
B.
Currency risk
C.
Low transaction costs
D.
High interest rates

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