Question 1

With regards to environmental analysis in fixed income investing, a country-level analysis is relevant to:

Options :

A : Corporate bonds only

B : Government bonds only

C : Both corporate bonds and government bonds

Answer: C

Question 2

When using a threshold assessment to integrate governance factors into the investment decision-making process, fund managers most likely focus on the:

Options :

A : cost of capital

B : quality of management

C : level of confidence about future earnings

Answer: B

Question 3

Which of the following has the long-term goal to keep the increase in global average temperature to well below 2°C (3.6°F) above pre-industnal levels?

Options :

A : The Kyoto Protocol

B : The Paris Agreement

C : The UN Framework Convention on Climate Change

Answer: B

Question 4

A concept that attempts to describe what would happen to global temperatures if CO# concentrations in the atmosphere were to double relative to the pre-industrial average is best described as:

Options :

A : climate change.

B : climate sensitivity.

C : transient climate response.

Answer: B

Question 5

A challenge to ESG integration for investment managers is the:

Options :

A : Narrow range of possible ESG data.

B : Inherently subjective nature of ESG analysis.

C : High correlation among third-party ESG ratings.

Answer: B

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