what are the key differences in equities between cfa level ii and level iii

At CFA Level II, the focus is on valuing equities using models such as multi-stage dividend discount models, residual income, and free cash flow valuation. In contrast, CFA Level III assumes that the equity can be valued and focuses on deciding whether to own it directly, through an index fund, or through an active manager, and how it fits into the portfolio.

The key ideas at Level III include passive versus active management, factor tilts, international diversification, and implementation cost.

From the full lesson: Equities at Level III