CFA Institute Sustainable-Investing Exam Practice Test Instant Access

Question 1

ESG factors that relate to future growth opportunities are most relevant to:

Aequity investors.

Bsovereign debt investors.

Ccorporate bond investors.

Answer : A

Question 2

Which of the following is an example of shareholder engagement? Institutional investors:

Aresponding to policy consultations

Bmaking ESG recommendations to policy makers

Cdiscussing ESG issues with an investee company's board

Answer : C

Question 3

According to the Sustainability Accounting Standards Board (SASB), GHG emission is material for more than 50% of the industries in which sector?

AHealth care

BTechnology and communications

CExtractives and minerals processing

Answer : C

Question 4

According to the Stockholm Resilience Centre, which of the following planetary boundaries have already been crossed as a result of human activity?

AClimate change only

BLoss of biosphere integrity only

CBoth climate change and loss of biosphere integrity

Answer : C

Question 5

In an emissions trading system:

AEmissions caps are fixed over time

BPermits may be allocated free of charge

CPrice signals cannot be created from the trading of permits

Answer : B

Question 6

In scenario analyses that incorporate ESG-related issues, which of the following approaches to strategic asset allocation best provides flexibility to capture potential winners and losers?

ATotal portfolio analysis

BDynamic asset allocation

CRegime-switching models

Answer : B

Question 7

Which of the following board committees aims to ensure that the board is balanced and effective?

AAudit committee

BCompensation committee

CCorporate governance committee

Answer : C

CFA Institute Sustainable Investing Certificate(CFA-SIC) Sustainable-Investing Exam Practice Test