1- In an ESG portfolio theory context, which of the following statements is TRUE?

a) The higher the correlation of the assets one can choose from, the greater the potential to underweight good assets versus bad assets without compromising too much on expected risk-adjusted returns.

b) The lower the correlation of the assets one can choose from, the greater the potential to underweight good assets versus bad assets without compromising too much on expected risk-adjusted returns.

c) The higher the correlation of the assets one can choose from, the greater the potential to overweight good assets versus bad assets without compromising too much on expected risk-adjusted returns.

d) The lower the correlation of the assets one can choose from, the greater the potential to overweight good assets versus bad assets without compromising too much on expected risk-adjusted returns.

2- Which of the following ESG issues would typically be categorized as a social issue within the materiality maps provided by the Sustainability Accounting Standards Board (SASB)?

a) Business ethics and culture

b) Resource management

c) Board structure

d) Health and safety