CFA Institute ESG-Investing Exam Questions Instant Access

Question 1

All else equal, a higher discount rate applied to a company's discounted cash flow (DCF) analysis will lead to:

Aa lower estimate of intrinsic value

Bthe same estimate of intrinsic value

Ca higher estimate of intrinsic value

Answer : A

Question 2

Avoiding long-term transition risk can most likely be achieved by:

Ainvesting in companies with stranded assets.

Bdivesting highly carbon-intensive investments in the energy sector.

Creducing exposure to companies exposed to extreme weather events.

Answer : B

Question 3

Which of the following encourages institutional investors to work together on human rights and social issues?

AHuman Rights 100+

BOECD Guidelines for Multinational Enterprises

CUnited Nations Guiding Principles on Business and Human Rights

Answer : C

Question 4

Which of the following data are most likely the easiest to optimize in a portfolio?

ASocial

BGovernance

CEnvironmental

Answer : B

Question 5

With regard to screening, exclusions that are not supported by global consensus are best described as:

Auniversal exclusions

Bidiosyncratic exclusions

Cconduct-related exclusions

Answer : B

Question 6

Credit-rating agencies are most likely classified as:

Aalgorithm-driven ESG research providers

B''traditional'' ESG data and research providers

C''nontraditional'' ESG data and research providers

Answer : B

Question 7

The offering of indexes and passive funds with ESG integration by asset managers

Apreceded the offering of actively managed ESG funds

Boccurred at the same time as the offering of actively managed ESG funds.

Cfollowed the offering of actively managed ESG funds

Answer : C

CFA Institute Certificate in ESG Investing ESG-Investing Exam Questions