CFA Institute ESG-Investing Exam Practice Test Instant Access

Question 1

A bond that funds offshore wind projects is most likely a:

ABlue bond

BGreen bond

CTransition bond

Answer : B

Question 2

Which of the following statements about social trends is most accurate?

ASocial trends have similar impacts on different sectors

BThe importance of a social trend for a country is independent of the level of its economic development

CThe impact of a social trend on companies within the same sector may differ based on each company's culture

Answer : C

Question 3

Engagement is best described as a dialogue:

ATo inform incremental buy/hold/sell decisions

BWith a specific and targeted objective to achieve change

CTo understand a company's stakeholders and its performance

Answer : B

Question 4

An organization conducts assessments that highlight events, behaviors, and practices that may lead to reputational and business risks and opportunities. This organization is best classified as a provider of:

AAdvisory services

BIntegrated research

CESG news and alerts

Answer : C

Question 5

According to the Brunel Asset Management Accord, which of the following is most likely a concern for the asset owner? A fund manager:

Ahaving short-term investment underperformance

Btaking lower risk compared to the investment mandate

Cgenerating returns consistently above the industry average

Answer : B

Question 6

According to a study by Berg, Koelbel, and Rigobon, the correlation of ESG ratings is:

AHigh, and this can be a source of insight for investors

BLow, and this poses a challenge for empirical research

CLow, and this motivates companies to improve their ESG performance

Answer : B

Question 7

According to the Global Sustainable Investment Alliance (GSIA), as of 2020, the largest sustainable investment strategy globally is:

AESG integration

Bexclusionary screening

Ccorporate engagement and shareholder action

Answer : A

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