Free CFA Institute Sustainable-Investing Exam Questions

Become CFA Institute Certified with updated Sustainable-Investing exam questions and correct answers

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Total 721 Questions | Updated On: Dec 16, 2025

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Question 1

Among ESG data and research providers, traditional providers tend to:

A : Be highly automated.

B : Focus on small and less-covered companies.

C : Have a broader product offering and research focus.

Answer: C

Question 2

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?

A : The Kyoto Protocol

B : The Paris Agreement

C : The UN Framework Convention on Climate Change

Answer: B

Question 3

Which of the following statements about externalities is most accurate?

A : Externalities are reflected in the prices of commercial goods and services

B : Private costs are higher than societal costs when externalities are negative

C : Measures to internalize externalities can be taken by corporates or governments

Answer: C

Question 4

When optimizing a portfolio for ESG factors, as constraint parameters are tightened, the deviation from an optimal portfolio most likely:

A : decreases.

B : is not affected.

C : increases.

Answer: C

Question 5

Regime-switching models for strategic asset allocation:

A : Fail to capture fat tails and skewness

B : Are based on historical data rather than forward-looking data

C : Have the potential to capture dramatic shifts in the investment environment

Answer: C

Page: 1 / 145

Total 721 Questions | Updated On: Dec 16, 2025

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