CFA ESG Certificate- Chapter 7 Correct
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The Aims and objectives for intergrating ESG into an investment process may include:
a) Meeting requirements under principles for responsible investment (PRI) regulations.
b) Increasing reputational risk at a firm and investment level
c) Meeting internal audit demands.
d) Improving the quality of engagement and stewardship activities, and increasing
investment returns - ANSWER d
Qualitative ESG analysis is likely to be used in investment processes that are based on:
a) Company-specific research
b) Fundamental analysis
c) stock-picking
d) all of the above - ANSWER d
Qualitative analysts and portfolio managers seek to intergrate their qualitative
investment opinion by incorporating:
a) Negative Screening
b) Quantitatie adjustments to financial models and valuations
c) Qualitative measures only
d) None of the above. - ANSWER b
Elements of ESG intergration include:
a) ESG factor tilts
b) Red flag indicators
c) Company questionaires and management interviews
d) watch lists - ANSWER a
Which of the following best represents the chronological order for ESG scorecard
development?
a) Step 1: Determine a scoring system based on what good or best practice looks like
for each indicator or issue.
Step 2: Assess a company and give it a score.
Step 3: Identity sector or company-specific ESG items.
Step 4: Benchmark the company's performance against industry averages or peer
group
Step 5: Calculate aggregated scores at issue level, dimension level, or total score level.
Step 6: Breakdown issues into a number of Indicators
100%
The Aims and objectives for intergrating ESG into an investment process may include:
a) Meeting requirements under principles for responsible investment (PRI) regulations.
b) Increasing reputational risk at a firm and investment level
c) Meeting internal audit demands.
d) Improving the quality of engagement and stewardship activities, and increasing
investment returns - ANSWER d
Qualitative ESG analysis is likely to be used in investment processes that are based on:
a) Company-specific research
b) Fundamental analysis
c) stock-picking
d) all of the above - ANSWER d
Qualitative analysts and portfolio managers seek to intergrate their qualitative
investment opinion by incorporating:
a) Negative Screening
b) Quantitatie adjustments to financial models and valuations
c) Qualitative measures only
d) None of the above. - ANSWER b
Elements of ESG intergration include:
a) ESG factor tilts
b) Red flag indicators
c) Company questionaires and management interviews
d) watch lists - ANSWER a
Which of the following best represents the chronological order for ESG scorecard
development?
a) Step 1: Determine a scoring system based on what good or best practice looks like
for each indicator or issue.
Step 2: Assess a company and give it a score.
Step 3: Identity sector or company-specific ESG items.
Step 4: Benchmark the company's performance against industry averages or peer
group
Step 5: Calculate aggregated scores at issue level, dimension level, or total score level.
Step 6: Breakdown issues into a number of Indicators
