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: Oct 27, 2025

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Question 1

With regard to screening, exclusionary preferences are usually adopted by:

A : asset owners.

B : asset managers.

C : sell#side practitioners.

Answer: A

Question 2

Which of the following statements regarding ESG considerations and sovereign debt is most accurate?

A : There is little correlation between ESG risk and credit ratings

B : ESG integration in sovereign debt is at similar levels to listed equities and corporate debt

C : ESG ratings tend to be structurally lower for emerging countries relative to developed economies

Answer: C

Question 3

Which of the following principles of the UK Stewardship Code 2020 applies to service providers?

A : Escalation

B : Collaboration

C : Review and assurance

Answer: C

Question 4

The Jevons paradox refers to:

A : Standard cost-benefit analysis being inadequate to quantify the downside losses from climate change

B : Relative improvement in natural resource efficiency being offset by increasing natural resource consumption

C : Reduction in snow and ice cover being responsible for lowering the amount of sunlight that is reflected back into space

Answer: B

Question 5

Suppose the average price-to-earnings (P/E) ratio for the financial industry is 10x. A financial institution with high ESG risk compared to its industry, is most likely assigned a fair value P/E ratio:

A : lower than 10x

B : of 10x

C : higher than 10x

Answer: A

Page: 1 / 145

Total 721 Questions | Updated On: Oct 27, 2025

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