Negative screening in investing excludes companies based on specific ESG criteria.Group of answer choicesTrueFalse

What is the key differentiator between ESG-based investing and impact investing?Group of answer choicesESG-based investing is focused only on short-term opportunities.ESG-based investing aligns very well with actual market prices.ESG-based investing is far more complicated due to legal constraints.ESG-based investing is not always in a company that has a social impact.

The material ESG issues for a company remain the same regardless of whether the investor is a shareholder or a bondholder. However, ESG analysis in equities seeks to identify an upside that is not reflected in the share price. In contrast, the bond analysis generally seeks to expose any downside that may not show up in its credit rating.Group of answer choicesTrueFalse

Which of the following is NOT a way to overcome investment myopia?Group of answer choicesRemove financial measuresReduce pressure for meeting short-term profitExtend financial measurement horizon

Single choice9)A large proportion of investment performance is mostly a function of:Security selectionInvestment manager selectionAsset allocation

An investor whose highest priority is avoiding risks, even if it means a low return on investment, would most likely invest in _____.A.hedge fundsB.mutual fundsC.stocksD.bonds