CFA Institute Certificate in ESG Investing - ESG-Investing Exam Practice Test
Question 1
An analyst evaluates the following statements about investor engagement:
Statement 1:Investor engagement focuses on preserving and enhancing short-term value on behalf of an asset owner.
Statement 2:Investor engagement can encompass lobbying as part of industry groups.
Which of the statements is accurate?
Statement 1:Investor engagement focuses on preserving and enhancing short-term value on behalf of an asset owner.
Statement 2:Investor engagement can encompass lobbying as part of industry groups.
Which of the statements is accurate?
Correct Answer: A
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Question 2
Under the International Corporate Governance Network's (ICGN) Global Governance Principles, a board chair's independence is most likely to be questioned if the person:
Correct Answer: B
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Question 3
According to the "Shades of Green" methodology developed by the Center for International Climate Research (CICERO), which of the following colors best categorizes a green bond that reduces emissions in the near term without contributing to climate-resilient long-term solutions?
Correct Answer: C
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Question 4
Which of the following is a challenge in ESG integration?
Correct Answer: C
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Question 5
A challenge for asset managers integrating ESG issues is most likely a lack of:
Correct Answer: B
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Question 6
Which of the following statements about corporate governance is most accurate? Companies with a more diverse board of directors are most likely associated with
Correct Answer: A
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Question 7
When using mean-variance optimization (MVO) models, ESG-related issues most likely:
Correct Answer: A
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Question 8
Within fixed income, ESG integration is most developed in:
Correct Answer: A
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Question 9
An asset manager considering environmental risks would most likely use:
Correct Answer: A
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Question 10
Which of the following is most likely a consequence of income inequality?
Correct Answer: C
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Question 11
New technologies have enabled workers to:
Correct Answer: B
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Question 12
A fund focused on avoiding the worst ESG performers relative to industry peers is most likely engaged in:
Correct Answer: A
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Question 13
Which of the following is an example of secondary data?
Correct Answer: C
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Question 14
ESG screens embedded within portfolio guidelines can be used as:
Correct Answer: C
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Question 15
The Integrated Biodiversity Assessment Tool (IBAT) is best described as an interactive mapping tool allowing decision makers to:
Correct Answer: A
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