Compared with younger people, older people are more likely to have:
Answer(s): B
Older people generally have higher accumulated savings compared to younger people due to longer periods of saving and investment. However, they tend to spend less on consumer goods. This pattern is influenced by factors such as a reduction in consumption needs, increased focus on healthcare, and other services as they age.
Which of the following ESG screening methodologies is most likely to result in a well-diversified portfolio? Screening on:
Answer(s): C
Using both relative and absolute ESG screening methodologies is most likely to result in a well- diversified portfolio. Relative screening compares companies against their peers within the same sector, while absolute screening applies fixed criteria across all companies regardless of their sector. Combining both methods ensures a broad and diverse portfolio by balancing sector-specific risks and universal ESG standards.
Which of the following would most likely be the initial step when drafting a client's investment mandate?
The initial step when drafting a client's investment mandate should be clarifying the client's ESG investment beliefs. This foundational step helps in defining the client's values, objectives, and priorities related to ESG, which will guide the entire investment strategy and ensure that it aligns with the client's expectations and goals.
Which of the following encourages institutional investors to work together on human rights and social issues?
The United Nations Guiding Principles on Business and Human Rights encourage institutional investors to work together on human rights and social issues. These principles provide a global standard for preventing and addressing the risk of adverse impacts on human rights linked to business activity, promoting collaborative efforts among investors to uphold human rights standards.
According to the Sustainability Accounting Standards Board (SASB), GHG emission is material for more than 50% of the industries in which sector?
According to the Sustainability Accounting Standards Board (SASB), greenhouse gas (GHG) emissions are material for more than 50% of industries in the extractives and minerals processing sector. This sector's activities are closely associated with significant GHG emissions due to the nature of resource extraction and processing operations, making GHG management a critical aspect of their environmental performance.Top of FormBottom of Form
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