Online Access Free Sustainable-Investing Practice Test

The size of the discount rate adjustment to account for ESG risks most likely depends on:

• A.The effectiveness of the company's ESG risk management.
• B.The magnitude of the company's cash flows.
• C.Company-specific ESG risks.

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

• A.Both physical risk and transition risk
• B.Physical risk only
• C.Transition risk only

The carbon offset market:

• A.Is based on a rigorous scientific process.
• B.Comprises both voluntary and regulated aspects.
• C.Is very transparent.

A qualitative assessment performed by a corporate credit analyst integrating ESG factors is least likely to include:

• A.a proprietary framework that aggregates metrics on the issuer from third-party sources
• B.information learned from an engagement call
• C.a review of the issuer's ESG policies and targets

In response to policy changes, several of the world's largest automakers made pledges to halt producing cars with internal combustion engines by 2035. Which of the following would an asset manager most appropriately use to address this trend?

• A.Liability-driven asset allocation model
• B.Factor risk asset allocation model
• C.Regime switching asset allocation model