Jevon's paradox refers to a situation where improvements in efficiency are offset by increased:
Answer(s): B
Jevon's paradox describes the phenomenon where increased efficiency leads to a reduction in resource use per unit of consumption, but overall resource consumption rises due to increased demand. (ESGTextBook[PallasCatFin], Chapter 3, Page 153)
Research on ESG integration in strategic asset allocation has tended to focus most on:
Answer(s): C
Governance criteria have historically been the main focus of ESG integration in strategic asset allocation, as governance is directly linked to corporate performance, risk management, and long- term value creation. (ESGTextBook[PallasCatFin], Chapter 5, Page 236)
A portfolio manager of an ESG fund attempting to outperform the general market is most likely to:
To outperform the market, an ESG fund manager focuses on companies that not only meet financial criteria but also recognize and adapt to social trends, positioning themselves as long-term leaders in their industry. (ESGTextBook[PallasCatFin], Chapter 8, Page 406)
Which of the following would most likely be the initial step when drafting a client's investment mandate?
Answer(s): A
The first step in drafting an investment mandate is understanding the client's ESG investment beliefs, which will guide the overall strategy, including performance measurement and implementation.(ESGTextBook[PallasCatFin], Chapter 9, Page 494)
Under the International Corporate Governance Network's (ICGN) Global Governance Principles, a board chair's independence is most likely to be questioned if the person:
A board chair's independence is most likely to be questioned if they were previously a non-executive employee of the company, as this creates potential conflicts of interest in their decision-making.(ESGTextBook[PallasCatFin], Chapter 5, Page 231)
Post your Comments and Discuss CFA Sustainable-Investing exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the Sustainable-Investing content, but please register or login to continue.