Question 1

Which of the following statements about quantitative ESG analysis is most accurate?

Options :

A : Quantitative ESG analysis is only based on third-party data

B : The length of the timeseries for ESG data is shorter than for financial data

C : Application programming interfaces (APIs) are used to bring structure to the ESG dataset

Answer: B

Question 2

According to an OECD Centre for Opportunity and Equality (COPE) 2015 report, the average income of the richest 10% of the population is about:

Options :

A : 4 times that of the poorest 10 percent across the OECD.

B :

9 times that of the poorest 10 percent across the OECD.

C : 14 times that of the poorest 10 percent across the OECD.

Answer: C

Question 3

Compared to an optimal portfolio that does not have any ESG restrictions a portfolio that optimizes for multiple ESG factors will most likely experience

Options :

A : lower active risk

B : higher active risk.

C : lower tracking error

Answer: B

Question 4

According to the Stockholm Resilience Centre (2023), which of the following planetary boundaries has already been crossed as a result of human activity?

Options :

A : Freshwater use

B : Ocean acidification

C : Stratospheric ozone depletion

Answer: A

Question 5

Which of the following statements about manager reporting on ESG integration is most accurate?

Options :

A :

Investment firms that are signatories to the Principles for Responsible Investment (PRI) voluntarily submit an annual report on their activities

B :

Disclosing voting activity alone is not sufficient to satisfy the International Corporate Governance Network (ICGN) requirement for engagement reporting

C :

The more fully integrated ESG becomes into the investment process, the easier it becomes to disaggregate a particular ESG driver from the broader investment decision

Answer: B

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