CFA Institute ESG-Investing Exam Questions Instant Access

Question 1

When searching for an asset manager with an ESG approach, in the request for proposal (RFP) an institutional asset owner would most appropriately ask:

Awhich broad market index the asset manager tracks

Bdetailed questions on specific portfolio holdings of the asset manager

Cif the asset manager aims for positive, measurable ESG outcomes beyond financial returns

Answer : C

Question 2

A portfolio manager may need to adopt a more appropriate ESG benchmark rather than a broad market benchmark if the degree of exclusions results in:

Alow active share and low tracking error

Blow active share and high tracking error.

Chigh active share and high tracking error.

Answer : C

Question 3

Which of the following are social megatrends?

AChanging demographics and mass migration.

BChanges to family structures and mass migration.

CChanges to family structures and changing demographics.

Answer : C

Question 4

Which of the following would most likely be the initial step when drafting a client's investment mandate?

AClarifying the client's ESG investment beliefs

BDefining how ESG performance will be measured

CReflecting the client's investment beliefs operationally in the fund manager's investment approach

Answer : A

Question 5

According to Mercer Consulting, which of the following asset classes has the highest availability of sustainability-themed strategies compared to its asset-class universe?

AReal estate

BPrivate debt

CInfrastructure

Answer : C

Question 6

Which of the following tests defines the internal theoretical cost on carbon emissions to guide a company's decision-making process in energy-intensive sectors?

ACarbon taxation

BShadow carbon pricing

CEmission trading system

Answer : B

Question 7

The UK's Green Finance Strategy identifies the policy lever of financing green as

Astrengthening the role of the UK financial sector in driving green finance

Bdirecting private sector financial flows to economic activities that support an environmentally sustainable and resilient growth.

Censuring that the financial sector systematically considers environmental and climate factors in its lending and investment activities.

Answer : B

CFA Institute Certificate in ESG Investing ESG-Investing Exam Questions