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ESG-Investing Practice Exam Questions and Answers

Certificate in ESG Investing

Last Update 4 days ago
Total Questions : 468

Certificate in ESG Investing is stable now with all latest exam questions are added 4 days ago. Incorporating ESG-Investing practice exam questions into your study plan is more than just a preparation strategy.

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Question # 1

Over the last several years a company has traded at an average price-to-earnings ratio (P/E) of 12x, compared to a peer group range of 11x to 13x. If the company implements a new risk management framework to better manage material ESG risks relative to its peers, it would most likely justify a P/E ratio of:

Options:

A.  

11x

B.  

12x

C.  

13x

Discussion 0
Question # 2

Which of the following social factors most likely impacts a company's internal stakeholders?

Options:

A.  

Stakeholder opposition

B.  

Human capital development

C.  

Product liability and consumer protection

Discussion 0
Question # 3

In a request for proposal from managers, for which of the following asset classes are voting policies least likely to be considered?

Options:

A.  

Active equity

B.  

Active fixed income

C.  

Passive/index tracking

Discussion 0
Question # 4

Compared to equities, bonds most likely:

Options:

A.  

have an infinite maturity.

B.  

have a wider range of issuers.

C.  

are inferior in the capital structure.

Discussion 0
Question # 5

Determining which ESG issues are material:

Options:

A.  

Involves judgment

B.  

Excludes impacts on short-term financial performance

C.  

Is a process that is independent of a company's industry and business model

Discussion 0
Question # 6

Fund labelers are most likely classified as:

Options:

A.  

regulators

B.  

fund promoters.

C.  

financial advisers

Discussion 0
Question # 7

The first step in the effective design of an investment mandate is determining the:

Options:

A.  

client's ESG investment beliefs

B.  

impact of ESG factors on risk and return characteristics

C.  

fund manager's investment approach to reflect ESG issues

Discussion 0
Question # 8

Which of the following is the main driver of stewardship efforts?

Options:

A.  

Creating long-term shareholder value

B.  

Minimizing the ESG tilt in the investment process

C.  

Providing investors and corporates with a comprehensive corporate reporting framework

Discussion 0
Question # 9

A common characteristic of the EU Paris-Aligned Benchmarks and the EU Climate Transition Benchmarks is that they both:

Options:

A.  

permit only green investments.

B.  

permit fossil fuel investments as part of a transition process.

C.  

require a reduction in carbon emissions intensity in the starting year.

Discussion 0
Question # 10

When portfolio managers upload their portfolios onto third-party ESG data provider online platforms, most of these platforms are capable of:

Options:

A.  

producing a measure of the portfolio's relative carbon exposure.

B.  

calculating an exact overall controversy or risk score for the portfolio.

C.  

illustrating the portfolio's weighting to high-scoring companies on ESG metrics.

Discussion 0
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