CFA Institute Exam ESG-Investing Topic 5 Question 3 Discussion

Actual exam question for CFA Institute's ESG-Investing exam

Question #: 3
Topic #: 5

[All ESG-Investing Questions]

Which of the following statements is most accurate? Faith-based Islamic investors:

Amay invest in gambling companies.

Bmay own investments that pay interest.

Clook to invest in line with Shariah principles.

Show Suggested Answer

Suggested Answer: C

Faith-based Islamic investors follow Shariah principles, which prohibit investments in industries such as gambling, alcohol, and those earning interest (riba). (ESGTextBook[PallasCatFin], Chapter 1, Page 31)

by Tawna at Nov 13, 2024, 08:35 PM

Limited Time Offer

25%

Off

Get Premium ESG-Investing Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Emily

4 days ago

But what about option B? Some may argue that owning investments that pay interest is not allowed.

upvoted 0 times

...

Pauline

5 days ago

I agree with Tijuana, Islamic investors follow Shariah principles.

upvoted 0 times

...

Tijuana

7 days ago

I think the most accurate statement is C.

upvoted 0 times

...

Marla

9 days ago

I'm pretty sure C is the correct answer. Faith-based Islamic investors are required to invest in line with Shariah principles, which prohibit investments in gambling and interest-bearing activities.

upvoted 0 times

...