CFA Practice Question

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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 ______.

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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