Lessons: Chapter 18 - Socially Responsible Investing

Important Links

Article on profitability of sustainable investing: Sustainable Reality (Morgan Stanley Report)



18.1: Socially responsible investing or SRI is generally the idea of making investments based one of the following:

  1. Solely on technical analysis (as described in Chapter 18) which includes how stock prices move up and down

  2. Solely on fundamental analysis (as described in Chapter 18) such as how much profits the company has made in the past

  3. Partially based on set of moral, ethical, or environmental guiding principles


18.2: A common term used to indicate SRI include one of the following:

  1. ESG (Economic, Social, and Governance) based investing

  2. Technical analysis based investing

  3. Fundamental analysis  investing


18.3: True or False. Nearly all investors agree on what should be considered socially responsible investing


18.4: True or False. Socially responsible investing started in the 1980s in opposition to the South African government's apartheid policies.


18.5. Which of these statements about socially responsible investing is false

  1. Socially responsible investing is generally not as profitable as other investment strategies

  2. Social responsible investing has been going on for centuries

  3. Social responsible investing depends entirely on your value system -- what you may consider socially irresponsible investing may not be the same as what others consider socially irresponsible investing.


> Answers to Chapter 18 Assignments