ESG /
CFA
/ /
Certificate
/ /
Practice Questions With Correct Answers
/ // // // //
Which //of //the //following //investment //approaches //focuses //on //enhancing //the //long-
term //value //of //an //investment //portfolio?
a. //ESG //investing
b. //Impact //investing
c. //Conventional //financial //investing //- //CORRECT //ANSWERS(S)✔✔A
Which //of //the //following //ESG //investments //addresses //the //bottom //of //the //pyramid //(BOP)?
a. //Green //bonds
b. //Micro-finance //bonds
c. //Fund //investing //in //smart //grid //technology //- //CORRECT //ANSWERS(S)✔✔B
The //"core //planetary //boundaries" //identified //by //the //Stockholm //Resilience //Centre //are:
a. //biosphere //integrity //and //climate //change.
b. //climate //change //and //land-system //change.
c. //biosphere //integrity //and //land-system //change. //- //CORRECT //ANSWERS(S)✔✔A
ESG //integration //can //have //a //material //financial //impact //on //a //company, //resulting //in:
a. //reduced //costs.
b. //reduced //efficiency.
, c. //increased //negative //externalities. //- //CORRECT //ANSWERS(S)✔✔A
Which //of //the //following //statements //regarding //externalities //is //most //accurate?
a. //Externalities //can //be //due //to //environmental //or //social //factors.
b. //When //externalities //are //positive, //private //costs //are //lower //than //societal //costs.
c. /
/Internalization /
/of /
/externalities /
/does //not //affect //companies' //financial //performance. //- //CORRECT //ANSWERS(S)✔✔A
Which /
/of /
/the /
/following /
/is //
a/
/minimum /
/requirement /
/for //signatories //to //the //Principles //of //Responsible //Investment //(PRI)? //Members //must:
a. //be //active //owners //in //the //companies //in //which //they //are //invested.
b. //seek //appropriate //disclosure //on //ESG //issues //by //the //investee //companies.
c. //have //senior-
level /
/commitment /
/and /
/accountability /
/mechanisms //for //responsible //investment //implementation. //- //CORRECT //ANSWERS(S)✔✔C
Which //of //the //following //organizations //developed //a //toolkit //for //establishing //long-
term, //sustainable //investment //mandates?
a. //Principles //of //Responsible //Investment //(PRI)
CFA
/ /
Certificate
/ /
Practice Questions With Correct Answers
/ // // // //
Which //of //the //following //investment //approaches //focuses //on //enhancing //the //long-
term //value //of //an //investment //portfolio?
a. //ESG //investing
b. //Impact //investing
c. //Conventional //financial //investing //- //CORRECT //ANSWERS(S)✔✔A
Which //of //the //following //ESG //investments //addresses //the //bottom //of //the //pyramid //(BOP)?
a. //Green //bonds
b. //Micro-finance //bonds
c. //Fund //investing //in //smart //grid //technology //- //CORRECT //ANSWERS(S)✔✔B
The //"core //planetary //boundaries" //identified //by //the //Stockholm //Resilience //Centre //are:
a. //biosphere //integrity //and //climate //change.
b. //climate //change //and //land-system //change.
c. //biosphere //integrity //and //land-system //change. //- //CORRECT //ANSWERS(S)✔✔A
ESG //integration //can //have //a //material //financial //impact //on //a //company, //resulting //in:
a. //reduced //costs.
b. //reduced //efficiency.
, c. //increased //negative //externalities. //- //CORRECT //ANSWERS(S)✔✔A
Which //of //the //following //statements //regarding //externalities //is //most //accurate?
a. //Externalities //can //be //due //to //environmental //or //social //factors.
b. //When //externalities //are //positive, //private //costs //are //lower //than //societal //costs.
c. /
/Internalization /
/of /
/externalities /
/does //not //affect //companies' //financial //performance. //- //CORRECT //ANSWERS(S)✔✔A
Which /
/of /
/the /
/following /
/is //
a/
/minimum /
/requirement /
/for //signatories //to //the //Principles //of //Responsible //Investment //(PRI)? //Members //must:
a. //be //active //owners //in //the //companies //in //which //they //are //invested.
b. //seek //appropriate //disclosure //on //ESG //issues //by //the //investee //companies.
c. //have //senior-
level /
/commitment /
/and /
/accountability /
/mechanisms //for //responsible //investment //implementation. //- //CORRECT //ANSWERS(S)✔✔C
Which //of //the //following //organizations //developed //a //toolkit //for //establishing //long-
term, //sustainable //investment //mandates?
a. //Principles //of //Responsible //Investment //(PRI)
