CFA Institute ESG-Investing Exam Practice Test Instant Access

Question 1

From a company investment perspective, which of the following is the most significant social impact from climate change transition risks?

AStakeholder opposition

BA lack of skilled workers

CThe need to restructure the business

Answer : C

Question 2

Which of the following social factors most likely impacts a company's internal stakeholders?

AStakeholder opposition

BHuman capital development

CProduct liability and consumer protection
Topic 4, Exam Pool D

Answer : B

Question 3

Compared to public companies, creating private company scorecards is challenging as:

Aless information is available in the public domain

Brating agencies are more critical of private companies

Cmanagement is more unwilling to disclose commercially sensitive information

Answer : A

Question 4

ESG integration into a company's operations most likely leads to increased:

AEfficiency.

BState intervention.

CNegative externalities.

Answer : A

Question 5

Index-based ESG strategies are typically optimized to:

AMinimize tracking error while keeping ESG improvement within an acceptable range

BMaximize ESG improvement while keeping tracking error within an acceptable range

CMaximize return while keeping both ESG improvement and tracking error within acceptable ranges

Answer : B

Question 6

In the revised 2020 version of the UK Stewardship Code, a significant change is that signatories are now required to:

Aestablish clear guidelines for escalating their activities.

Bpublicly disclose how stewardship is integrated into their investment process.

Creport annually how stewardship activities have delivered practical results for clients.

Answer : C

Question 7

In ESG ratings, there is a size bias in favor of:

ASmall companies

BMid-sized companies

CLarge companies

Answer : C

CFA Institute Certificate in ESG Investing ESG-Investing Exam Practice Test