Single Choice

Which of the following is the best description of the holdings$-$based approach that may be used to assess fund managers?

The holdings$-$based approach is a backward$-$looking measure that assesses the weighted average of companies' ESG scores within a fund.

The holdings$-$based approach is a forward$-$looking measure that assesses the weighted average of companies' ESG scores within a fund.

The holdings$-$based approach is a backward$-$looking measure that assesses the simple average of companies' ESG scores within a fund.

The holdings$-$based approach is a forward$-$looking measure that assesses the simple average of companies' ESG scores within a fund.