NO.PZ2024021802000070
问题如下：
Which of the following is least likely a reason why the correlation between ESG ratings from different providers is low?选项：
A.The way ESG ratings are produced is evolving
B.ESG factor identification is up to the rating providers
C.ESG performance is not adequately reflected in stock prices
解释：
A. Incorrect because this is one reason why the correlation between ESG ratings from different providers is low. All main providers’ processes continue to evolve. This evolving process also makes historic comparisons difficult. The different methodologies might also mean like-for-like comparisons are not being made in the correlations between rating agencies (which means changes to ESG rating methodologies reduce correlations between ratings from different agencies).
B. Incorrect because the fact that ESG factors are identified by rating providers is one reason why the correlation between ESG ratings from different providers is low. ESG factor identification is up to the rating provider; therefore, dispersal of opinions starts even before consideration of different weighting and scoring methodologies.
C. Correct because the fact that ESG performance is not adequately reflected in stock prices is a potential consequence of low correlations between the ratings of different ESG rating providers; it is not a reason for these low correlations. ESG performance is less likely to be reflected in corporate stock and bond prices, as investors face a challenge when trying to identify outperformers and laggards. Even if a large fraction of investors has a preference for ESG performance, the divergence of the ratings disperses the effect of these preferences on asset prices.
請問為什麼C是對？ 能詳細解釋一下嗎？
