CFA ESG Chapter 1, 2

Of the following, what is the most appropiate definition of ESG Investing?

• Approach to manage companies that explicy acknowledges the relevance of ESG in corporate decision.

• Approach to manage assets where investors acknowledges the relevance of ESG in corporate decision.

• Approach to manage assets where investors acknowledges the relevance of ESG in investing decision

• Approach to manage assets where investors acknowledges the relevance of sustaniable investing.

Incorporating ESG into investment process will most likely result in which of the options below?

• Both volatility and return will we reduced

• Both volatility and return will be increased

• Return will be increased, volatility will be reduced

Of the following, choose the most appropiate definition of the social factor

• Related to appropriate governance measures for public listed companies.

• Related to board diversity in multinationals

• Related to lives of humans (management human resources, local communities and clients).

• Related to ecological factors

Of the following, which of the following is not likely a form of ESG Investment?

• Valuation Investment

• Impact Investment

• Ethical Investment

• Value-Based Investment

The efficiency of engagement is least likely dependent on...

• The scale of ownership

• The quality of engagement

• Whether divestment is known to be a possible sanction

• The amount of "Short-Interest" in the name

Of the following, which investment style is least likely to utilize negative screening?

• Impact Investment

• Ethical Investment

• Value-driven investment

• Faith-based investment

Which of the following is least likely to be an example of a social factor?

• Human Rights

• Working Conditions

• Solid Adification

• Local Protests

Prof. Arthur Pigou introduced the concept of externalities. Which answer best describes this concept?

• Consumption of a product does not reflect its true benefit for the society as a whole.

• Production of a product does not reflect its true cost or benefit for the society as a whole.

• Production and consumption of a product does not reflect its true cost or benefit for society as a whole.

• Consumption of a product does not reflect its true cost or benefit for the society as a whole.

SDG's have been established by the UN. How many SDGs are there?

• 16

• 27

• 17

• 18

Which of the following investment approaches focuses on enhancing the long term value of an investment portfolio?

• Exclusion

• Impact Investing

• ESG Investing

• Conventional financial investing