CESG — Certificate in ESG Investing Fund Practice Questions
The free CESG — Certificate in ESG Investing questions that deal with fund, with answers and explanations. The full bank and the timed practice test cover every topic the exam asks about.
Question #7
An investor is evaluating two funds, one with high ESG scores and the other with low scores. What is a potential risk of choosing the high-scoring fund?
Correct answer: B
Explanation
High ESG scores can be misleading due to greenwashing, where companies exaggerate their ESG efforts.
Question #9
When assessing an investment opportunity, what is a key feature of an ESG fund?
Correct answer: A
Explanation
ESG funds explicitly consider environmental impacts alongside traditional financial metrics.
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