Question 1

Which of the following encourages institutional investors to work together on human rights and social issues?

Options :

A : Human Rights 100+

B : OECD Guidelines for Multinational Enterprises

C : United Nations Guiding Principles on Business and Human Rights

Answer: C

Question 2

While proponents highlight the benefits of integrating Environmental, Social, and Governance (ESG) considerations into investment analysis, skeptics raise valid concerns. Which of the following criticisms of ESG integration is the least likely to be substantiated by research or practical observations?

Options :

A : ESG funds are too inclusive of poorly performing companies

B : Strong evidence proves the benefits of ESG factors in terms of financial returns

Answer: B

Question 3

As investors increasingly seek to understand potential long-term impacts on portfolio performance, the identification of environmental megatrends becomes crucial. Which of the following represents a key environmental megatrend with the potential to introduce both risks and opportunities for investors?

Options :

A : Urbanization

B : Transition risk

C : Changes to work, leisure time, and education

Answer: B

Question 4

Which of the following governance initiatives was focused on increased oversight of banks?

Options :

A : The Dodd-Frank Act

B : The Greenbury Report

C : The Sarbanes-Oxley Act

Answer: A

Question 5

An investment analyst is evaluating the long-term impact of digital disruption across various industries and sectors. To fully assess the potential risks and opportunities presented by this megatrend, which of the following factors would be most important to consider?

Options :

A : Scandals in the use of big data have little impact on investors in digital technologies

B : Investors in digital prefer investing at a later stage once the market is established

C : Digital disruption can impact the profitability of digital companies both positively and negatively

Answer: C