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: Nov 13, 2024

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Question 1

With respect to ESG reporting by investment managers, the 2020 version of the UK Stewardship Code calls for more reporting on the:

A : outcomes from ESG activity

B : policies and activities of signatories.

C : assertions of investment managers on ESG themes.

Answer: A

Question 2

With respect to ESG integration in private equity, which of the following is most likely a challenge an investor may face?

A : Lack of strategy and long-term orientation from private equity managers

B : Lack of capacity within the investee company to fulfill ESG reporting requirements

C : Reporting frameworks that do not account for the relative lack of transparency found in private markets relative to public markets

Answer: B

Question 3

Which of the following is a challenge of integrating ESG analysis into investment processes?

A : Cultural challenges and biases within investment management firms

B : Issuer disclosures are standardized across industries without issuer-specific adjustments

C : ESG analysis is objective by nature, which makes it challenging to find investment opportunities

Answer: A

Question 4

Compared to traditional index-based funds, ESG index-based funds typically have:

A : a lower fee structure.

B : the same fee structure.

C : a higher fee structure.

Answer: C

Question 5

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

Page: 1 / 134

Total 667 Questions | Updated On: Nov 13, 2024

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