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BUS9040M: Decision Analysis for Managers
Assignment 1: Issues and Trade-offs in Investment Decisions
| Note: Please do make sure that you appropriately cite any reference material, using Harvard Referencing style and ensure that you draw from quality academic sources. On this note, remember that general internet sources such as Wikipedia and Investopedia are not recognised academic sources. |
Investigation – Issues and Trade-offs in investment decisions
Sustainable investing refers to a range of strategies in which investors include environmental,
social and corporate governance (ESG) criteria in investment decisions. Critically read about
ESG and sustainable investing and address the following questions (approximately 500 words
in total, excluding references).
(1) What generally makes decisions by sustainable investors difficult or complicated?
(compared to conventional investment decisions)? (for guidance, read about what
generally makes decisions hard or difficult (see also lecture topic 1).
(2) Considering ESG criteria generally used by sustainable investors, discuss trade-offs that
sustainable investors must typically make? (before you answer this question, read about
ESG criteria and the concept of trade-offs).
(3) What major sources of uncertainty does sustainable investors face?
(4) Based on what you learnt from your reading and lectures, how would you characterise a
“good” Sustainable investment decision? (As a guide read about characteristics of a
“good” decision in the context of decision sciences: lecture Topic 1 and Chapter 1 of the
core text Clemen & Reilly, 2014)
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