- Study guides, Class notes & Summaries

CFA ESG Bundled Exam Questions Package with Correct Answers

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3 items

STANFORDGRADESS

CFA ESG Exam Guide Questions and CORRECT Answers ESG investing - Ans an approach to managing assets where investors explicitly incorporate ESG factors into their investment decisions with the long-term return of an investment portfolio in mind aims to correctly identify, evaluate, and price social, environmental and economic risks and opportunities SDG goals - Ans 1 - no poverty 2 - zero hunger 3- good health and well being 4- education 5- gender equality 6 - clean water and sa...

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137 pages

Written in 2023/2024

Grade A+

STANFORDGRADESS

CFA ESG UPDATED Exam Questions and CORRECT Answers Which of the following investment approaches is most likely to be at risk of short-termism? A.) ESG Investing B.) Impact Investing C. Conventional Investing - Ans Conventional Investing Which of the following types of responsible investments is focused on the bottom of the pyramid (BOP)? A.) Green bonds B.) Microfinance bonds

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63 pages

Written in 2023/2024

Grade A+

STANFORDGRADESS

CFA ESG PASSED Exam Questions and CORRECT Answers What is ESG investing? - Ans An approach where investors acknowledge the relevance of environmental, social, and governance factors in their investment decisions and their role as owners and creditors. What does ESG investing recognize about generating long-term sustainable returns? - Ans It depends on stable, well-functioning, and well-governed social, environmental, and economic systems. How is ESG investing related to corporate su...

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16 pages

Written in 2023/2024

Grade A+

STANFORDGRADESS

Externalities are costs that a business does not bear itself but instead imposes on others. Which of the following is not an example of an externalized cost? - ANS Building on brownfield sites. Explanation Externalities are costs that a business does not bear itself (internalize) but instead imposes on others (externalizes). ESG analysis considers these externalized costs such as climate change, greenhouse gas emissions, pollution, emissions, waste management, resource depletion, wat...

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67 pages

Written in 2023/2024

Grade A+

DocLaura

Companies who are UN Global Compact and PRI signees will have investment strategies that? - ANS Incorporate ESG into the investment process What is an indirect environmental impact of a paper company cutting trees and transporting them to production plants? - ANS a natural regulator of carbon dioxide is destroyed What is the result of an analyst failing to correctly model risks and opportunities associated with ESG - ANS systematic underestimation of high ESG ...

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2 pages

Written in 2023/2024

Grade A+

DocLaura

Which of the following is a governance issue? A. Tax transparency B. Health and safety C. Working conditions - ANS A is correct because "[e]xamples of the definition and scope of ESG issues can be illustrated by the two widely-referenced organisations...Tax Transparency [falls under the umbrella of] Governance". B is incorrect because "[e]xamples of the definition and scope of ESG issues can be illustrated by the two widely-referenced organisations...Health & Safety [falls u...

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47 pages

Written in 2023/2024

Grade A+

DocLaura

Jack Fahey, CFA, is a portfolio manager of Pacific Sunrise Investments, which does not claim compliance with the Global Investment Performance Standards (GIPS). When presenting the historical performance of his small-cap growth composite, Fahey notes that only fee-paying accounts are included, but he does not mention that both discretionary and non-discretionary accounts are included. Has Fahey most likely violated the Standards? Yes, with respect to performance presentation only Yes, with...

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60 pages

Written in 2023/2024

Grade A+

DocLaura

Cfa Esg - Mock Exam Questions With Complete Answers Already Passed!!

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45 pages

Written in 2023/2024

Grade A+

EvaTee

Cfa Esg Certification - Chapter 1 Questions With All Correct Answers!!

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6 pages

Written in 2023/2024

Grade A+

EvaTee

Ch 1 Exam, Ch 2, Practice Exam, Glossary Exam, Ch 5 Exam, CFA ESG Terms, Governance Exam, Ch 1 Test, Environmental Questions, Ch 1 Test, Ch 1, Stewardship and engagement, CFA ESG Exam, Ch, TOPIC 1 Questions, Ch 7, Ch 9 Exam, CFA Level 1, Ch 5, Ch 4 Exam, Ch 8, Ch 3 Exam, Ch 7 Exam, CFA ESG - Mock Exam

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24 items

Grademasters

An investment firm's aims and objectives for integrating ESG into an investment process - Answer ► meeting requirements under fiduciary duty or regulations, ► meeting client and beneficiary demands, ► lowering investment risk, ► increasing investment returns, ► giving investment professionals more tools and techniques to use in analysis, ► improving the quality of engagement and stewardship activities, and ► lowering reputational risk at a firm level and in...

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6 pages

Written in 2023/2024

Grade A+

Grademasters

CFA Definition - Answer Explicit & systematic inclusion of ESG factors into investment analysis and decisions 3 Components to Integration - Answer 1) Research 2) Analysis 3) Decision Making Research Stage - Answer 1) Gather information (Financial & ESG) 2) Analyse to identify material financial / ESG factors impacting company / sector / country and discuss with company / issuer and monitor outcome Analyse Stage - Answer Assess impact of financial / ESG factors of corporate / financia...

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6 pages

Written in 2023/2024

Grade A+

Grademasters

Long-term social changes impact... - Answer governments, societies and economics, permanently over a long period of time. Can environmental trends have a social impact? - Answer Yes, environmental trends can have a severe social impact as well. In terms of social impact, give an example of one that happens because of global warming - Answer If we get global warming, we will see migration like we have never seen before from the places most effected. E.g., climate change impacting the bottom...

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6 pages

Written in 2023/2024

Grade A+

Grademasters

Corporate governance is the process by which a company is __ and __. It is framed by local law and culture, and almost all countries now have a __, but __-__ corporate governance code to set standards and expectations. - Answer managed, overseen, formal, non-binding However, within these formal frames, governance comes down to __ and how they __; they need __ and they need to be able to make relevant people __ for their decisions. - Answer people, interact, information, accountable Account...

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4 pages

Written in 2023/2024

Grade A+

Grademasters

Corporate governance - Answer system of internal controls and procedures that individual companies are managed in accordance with defines right, roles and responsibilities of various groups arrangement of checks, balances and incentives that minimizes conflicting interests between insiders and external shareholders Shareholder Theory - Answer corporate governance should be concerned with the conflict of interest between the firm's managers and its owners (shareholders) primary focus is sh...

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11 pages

Written in 2023/2024

Grade A+

Grademasters

How should alignment between asset manager and client be achieved within ESG investment mandates? - Answer Alignment should be designed so that the time frames and structures of portfolio manager remuneration closely reflect the performance experienced by the clients. What did the founder of Vanguard mean when he said that asset management faces the 'double agency' challenge? How is this addressed? - Answer Corporations are duty-bound to represent their shareholders, while money managers ar...

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7 pages

Written in 2023/2024

Grade A+

Grademasters

Why investors integrate ESG - Answer - meeting requirments under fiduciry duty or regulation - meeting client and beneficiary demands - lowering investment risk - increasing return - giving investment professionals more tools and techniques to use in analysis - lowering reputational risk at a firm and investment level Fiduciary duty and ESG - Answer As a fiduciary investors should be required to... - incorporate ESG issues into investment analysis and decision making consistent with ...

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8 pages

Written in 2023/2024

Grade A+

Grademasters

What did the Brundtland Report of 1987 show and what else was it referred to as? - Answer The Brundtland Report of 1987 showed that if you want good, long term economic growth, then you need to consider the environment and social progress. It was also called "Our Common Future". What did the Brundtland Report lay the foundations for and in what year? - Answer The Rio de Janeiro Earth Summit. 1992. What did the Rio de Janeiro Earth Summit lead to? What does this mean? - Answer The creatio...

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4 pages

Written in 2023/2024

Grade A+

Grademasters

Which of the following is a governance issue? A. Tax transparency B. Health and safety C. Working conditions - Answer A is correct because "[e]xamples of the definition and scope of ESG issues can be illustrated by the two widely-referenced organisations...Tax Transparency [falls under the umbrella of] Governance". B is incorrect because "[e]xamples of the definition and scope of ESG issues can be illustrated by the two widely-referenced organisations...Health & Safety [falls under th...

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59 pages

Written in 2023/2024

Grade A+

Grademasters