Question 1
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The Correct Answer is The best-in-class approach.
With respect to the implementation of environmental, social, and governance (ESG) considerations in the portfolio construction process, choosing to invest in a company that scores most favorably on labor standards within its industry is most likely an example of:
Question 2
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The Correct Answer is The proxy statement.
The best source of information on management compensation is:
Question 3
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The Correct Answer is Performance measured over a complete business cycle.
With respect to executive compensation, which of the following is most consistent with good governance practices?
Question 4
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The Correct Answer is Resolve conflicts of interest between the auditor and the company in favor of the shareowners.
To be consistent with good governance practices, an audit committee should:
Question 5
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The Correct Answer is Not on the company's board.
A shadow director of a company is most likely:
Question 6
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The Correct Answer is Has served on the board of the company for longer than ten years.
A board member's ability to act in the best interests of shareowners should most likely be questioned if the board member:
Question 7
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The Correct Answer is Impact investing.
From an environmental, social, and governance (ESG) perspective, a requirement to invest a portion of a fund in climate bonds is most likely an example of:
Question 8
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The Correct Answer is Manage conflicts of interests between insiders and external shareholders.
Which of the following statements is most accurate? The primary purpose of corporate governance is to:
Question 9
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The Correct Answer is Both selecting investments with positive social attributes and avoiding investments that deviate from an investor's beliefs.
Socially responsible investing (SRI) most likely involves:
Question 10
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The Correct Answer is Limit investments to those equities that are consistent with their moral or ethical values.
The least likely reason investors incorporate environmental and societal factors into their investment analysis is to: