Sustainable Investing 시험 - Level-1-CFA-Exam실제시험문제와 답 - 712문항

Question No : 1

In the ESG rating process, an assessment of risk, policies, and preparedness is best categorized as part of a(n):

A.operational assessment.
B.fundamental assessment.
C.disclosure-based assessment.

정답:
Explanation:
In the ESG rating process, an assessment of risk, policies, and preparedness is best categorized as part of a fundamental assessment. This type of assessment evaluates how well a company is managing its material ESG risks, which includes examining the company's risk exposure, the policies it has in place to manage those risks, and its preparedness to handle potential ESG-related issues. This holistic approach provides a comprehensive view of a company's ESG performance and its ability to sustain long-term value creation.

Question No : 2

Which of the following is most likely a secondary source of ESG information?

A.Annual reports
B.ESG rating reports
C.Corporate sustainability reports

정답:
Explanation:
ESG (Environmental, Social, and Governance) information is critical for investors to evaluate the sustainability and ethical impact of their investments. Different sources of ESG information vary in their primary and secondary nature based on how they are created and disseminated. Understanding the distinctions among these sources helps investors make informed decisions.

Question No : 3

In Australia, a managing director of a company is the:

A.executive chair.
B.only executive director.
C.former CEO of the company.

정답:
Explanation:
In Australia, a managing director is commonly understood to be the only executive director on the board. This role entails being the key individual responsible for the overall management and operations of the company. The managing director often has a broader and more hands-on role compared to other directors, overseeing daily operations and implementing board decisions.

Question No : 4

Formal corporate governance codes are most likely to:

A.be found in all major world markets.
B.call for serious consequences for non-compliant organizations.
C.be interpreted by proxy advisory firms when corporate compliance is assessed.

정답:
Explanation:
Formal corporate governance codes are now found in all major world markets. These codes establish guidelines and best practices for corporate governance, aiming to enhance transparency, accountability, and overall governance standards within companies. While the specifics can vary by country, the presence of these codes globally reflects a widespread commitment to improving corporate governance.
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Question No : 5

The EU Paris-Aligned Benchmarks and EU Climate Transition Benchmarks both:

A.prohibit investments in fossil fuels.
B.impose green-to-brown ratios to restrict “brown" investments.
C.use a relative approach by comparing a company’s performance to its sector average.

정답:
Explanation:
Both the EU Paris-Aligned Benchmarks (EU PABs) and the EU Climate Transition Benchmarks (EU CTBs) prohibit investments in fossil fuels. These benchmarks are designed to align investment portfolios with the goals of the Paris Agreement by reducing carbon emissions intensity and excluding investments that contribute significantly to carbon emissions, such as those in the fossil fuel industry.

Question No : 6

Negative screening for ESG factors in portfolios:

A.results in static exclusions.
B.can exclude an entire country.
C.is commonly applied to all asset classes.

정답:
Explanation:
Negative screening in ESG portfolios involves excluding certain sectors, companies, or countries based on specific ethical guidelines or ESG criteria. This approach can result in the exclusion of entire countries if they do not meet the predefined ESG standards.
For example, countries with poor human rights records, high levels of corruption, or severe environmental degradation might be excluded from investment portfolios to align with investors' ESG objectives.

Question No : 7

A hurdle to adopting ESG investing is most likely a:

A.lack of suitable benchmarks.
B.focus on short-term performance.
C.lack of options outside of equities.

정답:
Explanation:
A significant hurdle to adopting ESG investing is the lack of suitable benchmarks. Investors often need benchmarks to measure performance relative to specific goals or standards. The development of appropriate benchmarks for ESG investing is challenging due to the diverse and evolving nature of ESG factors. According to the MSCI ESG Ratings Methodology, integrating ESG factors into investment processes requires robust benchmarks that accurately reflect ESG risks and opportunities. Without these benchmarks, it is difficult for asset managers to gauge performance and make informed investment decisions.

Question No : 8

Organizing companies according to their sustainability attributes, such as resource intensity, sustainability risks, and innovation opportunities, best describes the:

A.Morningstar sustainability rating.
B.Sustainable Industry Classification System (SICS).
C.Task Force on Climate-related Financial Disclosures (TCFD).

정답:
Explanation:
The Sustainable Industry Classification System (SICS) organizes companies according to their sustainability attributes such as resource intensity, sustainability risks, and innovation opportunities. SICS is specifically designed to highlight the sustainability aspects of industries and companies, allowing for better comparison and analysis of their ESG performance. The Morningstar sustainability rating and the Task Force on Climate-related Financial Disclosures (TCFD) serve different purposes, with Morningstar providing ratings and TCFD focusing on climate-related financial disclosures.

Question No : 9

Which of the following would most likely see its estimate of intrinsic value increased by analysts?

A.A company with high climate-related risk
B.A company facing significant environmental regulations
C.A company having launched a service that reduces customers’ electricity usage

정답:
Explanation:
A company that has launched a service to reduce customers' electricity usage is likely to see its intrinsic value increased by analysts. This is because such a service directly addresses the growing demand for energy efficiency and sustainability. The MSCI ESG Ratings Methodology highlights that companies which can capitalize on opportunities related to environmental efficiency and innovation are likely to benefit from a better risk and return profile. This aligns with the broader trend towards sustainability and the reduction of energy consumption, making the company more attractive to investors focused on long-term value creation.

Question No : 10

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

정답:
Explanation:
The regime switching asset allocation model is most appropriate for addressing the trend of major automakers pledging to halt the production of internal combustion engine cars by 2035. This model allows asset managers to adapt to different market regimes, which is crucial given the significant shift in the automotive industry due to policy changes and the transition to electric vehicles. The ability to switch between different allocation strategies based on prevailingeconomic and market conditions helps manage risks and capitalize on emerging opportunities related to the automotive industry's transformation.

Question No : 11

In which of the following circumstances is Free, Prior, and Informed Consent (FPIC) most applicable?

A.Members agreeing to a social media platform’s privacy policy
B.Company constructing a fish farm next to a native waterfront community
C.Governments passing international standards against forced labor practices

정답:
Explanation:
Free, Prior, and Informed Consent (FPIC) is most applicable in situations where developments or projects affect indigenous peoples and their lands.
For example, if a company plans to construct a fish farm next to a native waterfront community, it must obtain FPIC from the community. This ensures that the community is adequately informed about the project, has the opportunity to voice their concerns, and consents to the project without any coercion.
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Question No : 12

Company reporting and transparency are led by the:

A.board
B.auditor
C.management team

정답:
Explanation:
Company reporting and transparency are primarily led by the management team. They are responsible for ensuring accurate and comprehensive disclosures, which are then overseen by the audit committee and the board. The management team's role includes preparing reports, implementing internal controls, and ensuring compliance with regulatory requirements. The audit committee and the board provide oversight and ensure that the reports are fair, balanced, and understandable, while the auditor offers independent verification.

Question No : 13

Which of the following is one of the five main drivers of nature change described by the Taskforce on Nature-related Financial Disclosures (TNFD)?

A.Ecosystem services
B.Invasive alien species
C.Transmission channels

정답:
Explanation:
The Taskforce on Nature-related Financial Disclosures (TNFD) identifies invasive alien species as one of the five main drivers of nature change. These species can significantly disrupt ecosystems, outcompete native species, and lead to biodiversity loss. Understanding and managing the impact of invasive alien species is crucial for maintaining ecosystem health and resilience.

Question No : 14

A materiality assessment to identify ESG issues impacting a company's financial performance is most likely measured in terms of:

A.likelihood only.
B.magnitude of impact only.
C.both likelihood and magnitude of impact.

정답:
Explanation:
A materiality assessment to identify ESG issues impacting a company's financial performance is most effectively measured in terms of both likelihood and magnitude of impact. This approach provides a comprehensive view of potential risks and opportunities by evaluating how likely anissue is to occur and the extent of its potential impact on financial performance. This dual assessment helps in prioritizing ESG issues that are both probable and significant in their effects.

Question No : 15

Which of the following projects are most likely to be financed in the green bond market?

A.Real estate projects
B.Manufacturing projects
C.Communications technology projects

정답:
Explanation:
In the green bond market, projects that are most likely to be financed include those that have clear environmental benefits. Real estate projects, especially those focusing on energy efficiency, sustainable building practices, and reducing carbon footprints, align well with the objectives of green bonds. These projects can include the development of green buildings, retrofitting existing structures to improve energy efficiency, and incorporating renewable energy sources.

Level-1-CFA-Exam Sustainable Investing 시험