CFA Institute Exam ESG-Investing Topic 5 Question 7 Discussion

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

Question #: 7
Topic #: 5

[All ESG-Investing Questions]

The potential impacts of climate risk on asset allocation strategies are:

Alocal but not systemic.

Bsystemic but not local.

Cboth local and systemic.

Show Suggested Answer

Suggested Answer: C

Climate risks have both local and systemic impacts on asset allocation. Local risks pertain to specific regions or industries, while systemic risks can affect the entire financial system due to the global nature of climate change. (ESGTextBook[PallasCatFin], Chapter 3, Page 139)

by Twana at Dec 05, 2024, 06:25 AM

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