Free CFA Institute ESG-Investing Exam Questions

Become CFA Institute Certified with updated ESG-Investing exam questions and correct answers

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Total 667 Questions | Updated On: Feb 20, 2025

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Question 1

An analyst would most likely increase a companys discount rate if the company:

A : Has strong ESG practices

B : Faces significant environmental litigation

C : Is well-positioned to benefit from ESG opportunities

Answer: B

Question 2

Which of the following statements about engagement escalation is most accurate?

A : Disinvestment is not considered a form of escalation.

B : Litigation is an escalation tool that should be used frequently.

C : Collective engagement is often the most powerful form of escalation.

Answer: C

Question 3

The rules that can be used to construct ESG exchange-traded funds (ETFs) include:

A : Thematic investing, only

B : Tilting weightings based on ESG scores, only

C : Both thematic investing and tilting weightings based on ESG scores

Answer: C

Question 4

The potential impacts of climate risk on asset allocation strategies are:

A : local but not systemic.

B : systemic but not local.

C : both local and systemic.

Answer: C

Question 5

Flooding, droughts, and storms are examples of severe weather events arising from:

A : Physical risk only

B : Transition risk only

C : Both physical risk and transition risk

Answer: A

Page: 1 / 134

Total 667 Questions | Updated On: Feb 20, 2025

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