Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
All socially responsible investing funds use shareholder activism.
False. Some SRI funds use shareholder activism to reform companies, but others just avoid them entirely.
2.
There is a religious objection to investments that pay interest.
True. Islamic investing forbids the paying of interest, and therefore many Islamic mutual funds do not invest in bonds.
3.
Shareholder activism is a key for _______.
Some SRI funds. Some SRI funds engage in shareholder activism to reform companies. Others simply shun those companies.
4.
The average socially responsible investing fund's costs are _______.
More than the average non-SRI fund's. These funds are often smaller than non-SRI funds and therefore don't enjoy the same economies of scale. Further, some SRI funds charge higher management fees, taking into account the added costs of SRI screening and research.
5.
A socially responsible investing fund would never consider owning stock in a weapons factory.
False. Though it's probably not likely, it would be within the realm of possibility that the fund would judge the weapons factory on other SRI criteria. There is no one set of criteria that all funds agree on.
