Free CFA Institute ESG-Investing Practice Exam Questions and Answers 2026

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Total 667 Questions | Updated On: Apr 02, 2026

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Question 1

The debate around regulating the social media industry is based on risks associated with:

A : big data

B : digital disruption

C : embedded systems

Answer: A

Question 2

Upon conducting a comprehensive risk assessment, an analyst identifies significant risk factors pertaining to a company's social performance. Given the potential impact of these social risks on the company's future financial performance, how would the analyst most likely adjust the cash flow estimates within your financial model?

A : A lower discount rate and higher liabilities

B : A higher discount rate and higher liabilities

C : A higher discount rate and lower liabilities

Answer: B

Question 3

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

A : local but not systemic.

B : systemic but not local.

C : both local and systemic.

Answer: C

Question 4

Which of the following statements regarding corporate governance is most accurate?

A : Board appraisals are most effective when led by an internal facilitator.

B : A board should be independent of the decisions of the previous boards.

C : Gender is the most important type of diversity needed for a board to be successful.

Answer: B

Question 5

Which of the following is a challenge of integrating ESG analysis into investment processes?

A : Cultural challenges and biases within investment management firms

B : Issuer disclosures are standardized across industries without issuer-specific adjustments

C : ESG analysis is objective by nature, which makes it challenging to find investment opportunities

Answer: A

Page: 1 / 134

Total 667 Questions | Updated On: Apr 02, 2026

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