1.2 Which of the following statements about ESG portfolio optimization is most accurate? (V4
Mock#91)
．．
AB
C.
ESG portfolio optimization via constraints applies a fixed decision on specific securities
Portfolios that optimize for a combination of ESG absolute data and subjective rankings
minimize active risk to achieve both targets
Optimizations with a targeted ESG exposure that requires tighter constraints may result
in an increase in deviation from an optimal portfolio
Correct Answer: C
