answer the question

Tutorial Questions for Week Beginning Monday 11 April 2022 This week's questions address the topical finance issue of investing in a way that promotes good environmental, social, and governance (ESG) goals. An important ESG goal is reducing. or at least not increasing, emissions that contribute towards global warming. It is not an easy process, as illustrated by the news report copied below that discusses the performance of Generation Investment Management, a "green fund" co-founded by former US Vice-President Al Gore. The aim of the tutorial is to stimulate a discussion and bring out different points of view to illustrate the complexity of the issue. People often say a good education will make you a critical thinker. This tutorial is designed to develop your critical thinking skills. (Actually, all your tutorials have this aim.) (a) GIM claims on its website that it "seeks transformational change to drive to a net zero, prosperous, equitable, healthy and safe society". How does GIM's investment style contribute towards this aim? (b) GIM's biggest fund typically owns stakes in several dozen public companies and holds them for about five years on average. GIM says the companies held by its biggest fund "emit roughly 75% less greenhouse gas per dollar of revenue than those in the MSCl World Index, a basket of more than 1,500 companies that Generation uses as a benchmark to measure its financial performance." Is it possible for everyone to invest like GIM? (c) If a majority of investors followed GIM's approach what would happen to the expected return of the companies shunned by GIM? (d) The Bloomberg news report states that GIM's "main fund has returned an annualized 13.7% since its inception in 2005 , versus 8.6% for its benchmark, according to investors." Would you expect a fund like GIM to persistently outperform the MSCI World Index? Why or why not? (e) What strategy would you recommend for investing in a way that reduces or minimises global warming? (f) What is the carbon emissions impact of food home deliveries? Here's a clue