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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:

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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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Delbert
22 days ago
I don't think so, because climate risk can have widespread effects on global markets.
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Ashlee
25 days ago
But can't it be just local and not systemic?
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Brigette
27 days ago
I agree with Delbert, climate risk can affect both local and systemic asset allocation strategies.
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Lashandra
29 days ago
Hey, at least we're not being asked about the climate of other planets. That would really be out of this world!
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Quentin
3 days ago
A) local but not systemic.
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Delbert
1 months ago
I think the impacts can be both local and systemic.
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Pamella
1 months ago
C, because the climate doesn't respect borders or economic boundaries. This is a worldwide problem that requires a comprehensive solution.
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Filiberto
10 days ago
C, because the climate doesn't respect borders or economic boundaries. This is a worldwide problem that requires a comprehensive solution.
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Joseph
11 days ago
A) local but not systemic.
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Elliot
1 months ago
The climate is a complex beast, and its impacts are just as widespread. C is the only option that really captures the full scope of the issue.
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Arlie
1 months ago
Local and systemic? Sounds like a double-whammy to me. C definitely seems like the right choice.
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Andra
1 months ago
Climate risk affects us all, both locally and globally. I'd say C is the way to go here.
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Cassi
6 days ago
We need to be proactive in incorporating climate risk into our investment decisions.
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Harley
9 days ago
I think C is the best option to address both local and systemic impacts.
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Peggy
10 days ago
It's important to consider how climate risk can affect asset allocation strategies.
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Caprice
20 days ago
I agree, climate risk can have both local and systemic impacts.
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