ESG-Investing Exam Dumps | When incorporating ESG factors into valuation inputs, which of the following would most likely require

Home
CFA Institute
Certificate in ESG Investing
CFAInstitute.ESG-Investing.v2024-11-29.q136
Question 101

Valid ESG-Investing Dumps shared by ExamDiscuss.com for Helping Passing ESG-Investing Exam! ExamDiscuss.com now offer the newest ESG-Investing exam dumps, the ExamDiscuss.com ESG-Investing exam questions have been updated and answers have been corrected get the newest ExamDiscuss.com ESG-Investing dumps with Test Engine here:

Access ESG-Investing Dumps Premium Version
(618 Q&As Dumps, 35%OFF Special Discount Code: freecram)

<< Prev Question Next Question >>

Question 101/136

When incorporating ESG factors into valuation inputs, which of the following would most likely require the lowest discount rate?

A. A company with strong ESG practices

B. A high-growth technology company operating in emerging markets

C. A company that is judged to have a negative environmental impact

Correct Answer: A

When incorporating ESG factors into valuation inputs, a company with strong ESG practices would most likely require the lowest discount rate. This is because strong ESG practices are associated with lower risks, which can lead to more stable and predictable cash flows.
* Lower Risk Premium: Companies with robust ESG practices are often perceived as less risky due to better governance, risk management, and sustainability practices. This lowers the risk premium and, consequently, the discount rate.
* Stable Cash Flows: Strong ESG practices contribute to long-term sustainability and can lead to more reliable and stable cash flows. This stability justifies a lower discount rate in valuation models.
* Positive Market Perception: Companies with strong ESG credentials may enjoy a better reputation and greater investor confidence, which can reduce the cost of capital and support a lower discount rate.
References:
* MSCI ESG Ratings Methodology (2022) - Highlights the relationship between strong ESG practices and lower financial risk.
* ESG-Ratings-Methodology-Exec-Summary (2022) - Discusses how ESG factors are integrated into valuation models and their impact on discount rates.

Your email address will not be published. Required fields are marked *

Comment: *

Name: *

Email: *

Rating: *

Verification: *

Question List (136q): Question 1: Asset owners can reflect ESG considerations through corporat...; Question 2: Which of the following is an example of a just' transition w...; Question 3: According to most of the world's corporate governance codes,...; Question 4: Avoiding long-term transition risk can most likely be achiev...; Question 5: Credit-rating agencies are most likely classified as:...; Question 6: With respect to exclusion policies, which of the following f...; Question 7: Investors in a natural gas power plant identified a material...; Question 8: The European Union (EU) Ecolabel:...; Question 9: Which of the following statements is least accurate? Compare...; Question 10: When portfolio managers upload their portfolios onto third-p...; Question 11: Which of the following is most likely categorized as an exte...; Question 12: The United Nations Framework Convention on Climate Change (U...; Question 13: Which of the following investor types most likely prefers ex...; Question 14: Analyzing a portfolio's social impact exposure is best achie...; Question 15: A difficulty of integrating ESG into sovereign debt analysis...; Question 16: Which of the following statements about proxy voting is most...; Question 17: The perpetual compound annual rate that a company's cash flo...; Question 18: Regarding ESG issues, which of the following sets the tone f...; Question 19: Under the UK listing regime, Class 1 transactions:...; Question 20: ESG screens embedded within portfolio guidelines can be used...; Question 21: Which of the following is an example of secondary data?...; Question 22: Which of the following is one of the five main drivers of na...; Question 23: A bond issued to finance construction of a solar farm is an ...; Question 24: Companies may be excluded from the UK Modern Slavery Act on ...; Question 25: Which of the following is an environmental megatrend that ha...; Question 26: Compared to an optimal portfolio that does not have any ESG ...; Question 27: According to the Stockholm Resilience Centre, which of the f...; Question 28: Excluding investment in companies with a history of labor in...; Question 29: Under which perspective did the Freshfields Report argue tha...; Question 30: As a percentage of the overall materiality threshold reporte...; Question 31: In which country is the nominations committee drawn from sha...; Question 32: As policies on ESG issues and financial regulation across co...; Question 33: According to the framework of the Task Force on Climate-Rela...; Question 34: When searching for an asset manager with an ESG approach, in...; Question 35: With respect to the current state of ESG disclosure globally...; Question 36: Which of the following subclasses is most likely to have the...; Question 37: When searching for an asset manager with an ESG approach, in...; Question 38: Which of the following emphasizes that short-term investment...; Question 39: Which of the following is one of the four phases of activiti...; Question 40: A social media company faces criticism from a consumer actio...; Question 41: Which of the following would credit rating agencies (CRAs) m...; Question 42: EU regulators manage the independence of audits for public c...; Question 43: Which of the following is a form of individual engagement?...; Question 44: When using a threshold assessment to integrate governance fa...; Question 45: All else equal, a higher discount rate applied to a company'...; Question 46: Which of the following statements is aligned with the Pensio...; Question 47: Information for use in ESG tools can be collected directly v...; Question 48: According to the Global Sustainable Investment Alliance (GSI...; Question 49: Stock exchanges can contribute to the growth of ESG market b...; Question 50: Which element of EU Taxonomy for Sustainable Activities scre...; Question 51: With respect to ESG engagement for a company that is a going...; Question 52: A bond issued to fund projects that provide a clear benefit ...; Question 53: In the European Union, publicly listed firms are obliged to ...; Question 54: Which of the following scenarios best illustrates the concep...; Question 55: A company reduces water usage and increases usage of more ex...; Question 56: Which of the following is most likely the primary driver of ...; Question 57: Globalization has led to a reduction in:...; Question 58: Jurisdictions are most likely to impose extraterritorial law...; Question 59: Which of the following parties is most likely to help invest...; Question 60: Compared to developed markets, ESG investing in emerging mar...; Question 61: Regrowing previously logged forests is most likely an exampl...; Question 62: A company's emission reduction commitments are best evaluate...; Question 63: According to the UK Investor Forum which of the following is...; Question 64: Corporate engagement and shareholder action is the predomina...; Question 65: The Sustamalytics database is most likely used for:...; Question 66: A challenge to ESG integration at the asset allocation level...; Question 67: Which of the following is most likely to cast doubt on a dir...; Question 68: Which of the following is most likely categorized as an exte...; Question 69: A discount retailer facing high employee turnover due to poo...; Question 70: Corporate governance in the UK is notable for:...; Question 71: According to the Brunel Asset Management Accord, which of th...; Question 72: To produce a rating, an ESG rating provider will most likely...; Question 73: With regard to screening, exclusions that are not supported ...; Question 74: Which of the following ESG screening methodologies is most l...; Question 75: Which of the following is an example of collaborative engage...; Question 76: When accounting for a critical weakness in a company's envir...; Question 77: When optimizing a portfolio for ESG factors, as constraint p...; Question 78: Which of the following transition risks is most likely assoc...; Question 79: Natural language processing (NLP) is employed as a tool in E...; Question 80: A portfolio manager may need to adopt a more appropriate ESG...; Question 81: The debate around regulating the social media industry is ba...; Question 82: In response to policy changes, several of the world's larges...; Question 83: In contrast to engagement dialogues, monitoring dialogues mo...; Question 84: The correlation between ESG ratings of issuers by different ...; Question 85: Which of the following statements about quantitative ESG ana...; Question 86: Which of the following statements about materiality is most ...; Question 87: During the decommissioning phase of a company's mining proje...; Question 88: The investor initiative FAIRR focuses on screening out compa...; Question 89: Which of the following statements about corporate governance...; Question 90: Which of the following best summarizes the studies on carbon...; Question 91: Compared with younger people, older people are more likely t...; Question 92: Human rights violations are most likely to affect workers em...; Question 93: New technologies have enabled workers to:...; Question 94: Which of the following ESG investing approaches aims to driv...; Question 95: Which of the following statements regarding optimization of ...; Question 96: Which of the following would credit rating agencies (CRAs) m...; Question 97: Measuring a portfolio's carbon intensity using the European ...; Question 98: Among asset owners, which of the following is most likely a ...; Question 99: The COVID-19 pandemic led to increased:...; Question 100: Which of the following is one of the four realms of nature d...; Question 101: When incorporating ESG factors into valuation inputs, which ...; Question 102: Which of the following is most likely a reason for concern r...; Question 103: Philanthropy is most likely associated with:...; Question 104: Which of the following greenhouse gases (GHGs) has the longe...; Question 105: According to the Sustainability Accounting Standards Board (...; Question 106: Norms-based screening is the largest investment strategy in...; Question 107: According to the Taskforce on Nature-related Financial Discl...; Question 108: Which of the following factors is most relevant to the perfo...; Question 109: Which of the following statements about the decoupling of ec...; Question 110: When assessing credit and ESG ratings, which of the followin...; Question 111: With respect to ESG integration in private equity, which of ...; Question 112: Which of the following scenarios best illustrates the concep...; Question 113: Which of the following engagement styles is most likely clos...; Question 114: Fund labelers are most likely classified as:...; Question 115: Exclusionary screening:; Question 116: Which of the following ESG screening methodologies is most l...; Question 117: When undertaking an ESG assessment of a private equity deal ...; Question 118: To fall in scope of mandatory compliance with the EU's Corpo...; Question 119: Which of the following is the main driver of stewardship eff...; Question 120: When integrating ESG analysis into the investment process, d...; Question 121: An ESG scorecard for sovereign debt issuers has the followin...; Question 122: An unfavorable corporate governance assessment would most li...; Question 123: Negative screening for ESG factors in portfolios:...; Question 124: What type of provider of ESG-related products and services i...; Question 125: Interest by retail investors in responsible investing has:...; Question 126: In contrast to engagement dialogues, monitoring dialogues mo...; Question 127: In the ESG rating process, an assessment of risk, policies, ...; Question 128: Which of the following countries is most likely to use a two...; Question 129: The Cadbury Commission proposed that:...; Question 130: Which of the following statements regarding ESG screening is...; Question 131: All else equal, which of the following companies would most ...; Question 132: Which of the following is an example of a climate adaptation...; Question 133: What type of provider of ESG-related products and services i...; Question 134: The UK's Green Finance Strategy identifies the policy lever ...; Question 135: Best-in-class funds most likely:...; Question 136: The Integrated Biodiversity Assessment Tool (IBAT) is best d...

[×]

Download PDF File

Enter your email address to download CFAInstitute.ESG-Investing.v2024-11-29.q136.pdf

Email:

Disclaimer:
Freecram doesn't offer Real GIAC Exam Questions. Freecram doesn't offer Real SAP Exam Questions. Freecram doesn't offer Real (ISC)² Exam Questions. Freecram doesn't offer Real CompTIA Exam Questions. Freecram doesn't offer Real Microsoft Exam Questions.
Oracle and Java are registered trademarks of Oracle and/or its affiliates.
Freecram material do not contain actual actual Oracle Exam Questions or material.
Microsoft®, Azure®, Windows®, Windows Vista®, and the Windows logo are registered trademarks of Microsoft Corporation.
Freecram Materials do not contain actual questions and answers from Cisco's Certification Exams. The brand Cisco is a registered trademark of CISCO, Inc.
CFA Institute does not endorse, promote or warrant the accuracy or quality of these questions. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
Freecram does not offer exam dumps or questions from actual exams. We offer learning material and practice tests created by subject matter experts to assist and help learners prepare for those exams. All certification brands used on the website are owned by the respective brand owners. Freecram does not own or claim any ownership on any of the brands.

Question 101/136

LEAVE A REPLY

Download PDF File