NO.PZ2024021802000039
问题如下：
Asset managers are most likely to use exclusionary screening to:
选项：
A.identify best-in-class investments.
B.lower a portfolio's tracking error compared to a non-ESG benchmark.
C.impose a set of values aligned with an ethical or normative framework.
解释：
A. Incorrect because best-in-class represents, to some degree, the inverse of exclusionary screening. It employs a given ESG rating methodology to identify companies with better ESG performance relative to its industry peers.
B. Incorrect because exclusions would bring upon higher tracking error. The degree of exclusions may carry significant implications from a portfolio management perspective — not just in terms of higher tracking error and active share, but also in unintended factor exposure. Also excluding meaningful sectors or industries within an index, such as fossil fuels, will generate a higher tracking error.
C. Correct because exclusions as a type of socially responsible investment look to impose a set of values or preferences to screen through an ethical or normative framework a portfolio’s exposure to specific sectors.
如何理解high track error or lower track error?
