- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 2. Investors and Other Stakeholders
- Subject 3. Corporate ESG Considerations
CFA Practice Question
Many so-called "sin stocks," including purveyors of tobacco, alcohol, gambling, and defense contractors, are banned from portfolios on moral or ethical grounds. This strategy is known as ______.
B. negative screening
C. clean investing
A. thematic investing
B. negative screening
C. clean investing
Correct Answer: B
Negative screening is the practice of excluding companies that violate accepted standards in such areas as human rights or environmental concerns.
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