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Pass the CFA Institute Sustainable Investing Certificate Sustainable-Investing Questions and answers with CertsForce

Viewing page 7 out of 16 pages
Viewing questions 91-105 out of questions
Questions # 91:

Flooding, droughts, and storms are examples of severe weather events arising from:

Options:

A.

Physical risk only


B.

Transition risk only


C.

Both physical risk and transition risk


Expert Solution
Questions # 92:

Which of the following statements about green bonds and sustainability-linked bonds (SLBs) is most accurate?

Options:

A.

A global consensus exists on the types of capital projects that fit in the scope of green bonds


B.

Green bonds allow issuers more flexibility in achieving sustainability targets compared to SLBs


C.

Issuers of SLBs agree to pay a higher coupon to investors if they fail to achieve a sustainability-linked target


Expert Solution
Questions # 93:

Which of the following countries have a joint audit requirement that all public interest entities must engage at least two independent accounting firms to perform an annual audit?

Options:

A.

France


B.

Germany


C.

United Kingdom


Expert Solution
Questions # 94:

A small company based in Sweden operates in an industry that has good sustainability ratings. The company has a low ESG rating that an analyst believes to be biased. The bias would most likely result from the company's:

Options:

A.

industry.


B.

company size.


C.

geographical base of operations.


Expert Solution
Questions # 95:

With respect to ESG reporting, company management has:

Options:

A.

No discretion over ESG disclosures


B.

Little discretion over ESG disclosures


C.

Wide discretion over ESG disclosures


Expert Solution
Questions # 96:

Alignment of an investment manager's performance against a long-term ESG investor’s objectives is best achieved by which of the following?

Options:

A.

Benchmarking against the market


B.

Engaging in a monitoring dialogue frequently


C.

Early reporting of deviations from the expected investment process or style


Expert Solution
Questions # 97:

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.


Expert Solution
Questions # 98:

Excluding tobacco from the investment universe is an example of which of the following ESG screening approaches?

Options:

A.

Universal exclusion


B.

Idiosyncratic exclusion


C.

Conduct-related exclusion


Expert Solution
Questions # 99:

When tailoring an ESG investment approach to client needs, the primary driver of ESG investment for general insurers is most likely:

Options:

A.

fiduciary duty.


B.

reputational risk.


C.

awareness of financial impacts of climate change.


Expert Solution
Questions # 100:

Bonds that fund projects that provide access to essential services, infrastructure, and social programs to underserved people and communities are best described as:

Options:

A.

green bonds.


B.

social bonds.


C.

transition bonds.


Expert Solution
Questions # 101:

The International Corporate Governance Network's (ICGN) Model Mandate Initiative requests two areas of ESG-specific disclosure. Which of the following is not one of the disclosures?

Options:

A.

A comprehensive ESG-linked performance attribution analysis


B.

A detailed disclosure of stewardship engagement and voting activity


C.

The manager's assessment of ESG risks that are embedded in the portfolio


Expert Solution
Questions # 102:

Primary data sources for ESG data include:

Options:

A.

ESG rating firms.


B.

surveys of company managers.


C.

assessments made by non-governmental organizations.


Expert Solution
Questions # 103:

According to the consulting firm McKinsey & Company, which of the following is a dimension of sustainable investing applied by fund managers?

Options:

A.

Public reporting


B.

Security valuation


C.

Strategic asset allocation


Expert Solution
Questions # 104:

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


Expert Solution
Questions # 105:

For private equity investments, an especially important ESG factor is:

Options:

A.

environmental.


B.

social.


C.

governance.


Expert Solution
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Viewing questions 91-105 out of questions