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

Question 1
According to a study of the Hermes UK Focus Fund: which of the following engagement objectives was most likely to be achieved through shareholder activism?

Correct Answer: B
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Question 2
Which of the following principles of the UK Stewardship Code 2020 applies to service providers?

Correct Answer: A
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Question 3
Which of the following strategies is most consistent with an investment mandate focusing on risk management?

Correct Answer: C
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Question 4
The rules that can be used to construct ESG exchange-traded funds (ETFs) include:

Correct Answer: B
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Question 5
Which of the following would credit rating agencies (CRAs) most likely focus on in order to test how well an issuer's management uses the assets under its control to generate sales and profit?

Correct Answer: B
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Question 6
Which of the following is most likely a characteristic of good corporate governance?

Correct Answer: C
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Question 7
The divergence of ratings among ESG providers most likely.

Correct Answer: A
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Question 8
A situation in which a company making good strides toward more sustainable practices but is unwilling to reveal as much for fear of retribution or misinterpretation is best described as:

Correct Answer: B
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Question 9
Which of the following is an example of a social factor affecting external stakeholders?

Correct Answer: A
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Question 10
Which of the following is a success factor characteristic of investor collaboration? Investors should have:

Correct Answer: B
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Question 11
With respect to the current state of ESG disclosure globally, issuer reporting frameworks for ESG information are:

Correct Answer: C
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