A socially responsible mutual fund will only purchase stocks in companies that
A) have a no-smoking policy in place.
B) have a culturally diverse management team.
C) hire some job candidates who are HIV positive.
D) have good social performance.

Question

Quizplus · Accepted Answer

A socially responsible mutual fund is focused on investing in companies that align with their ethical or social beliefs. Therefore, the most appropriate choice for a socially responsible mutual fund would be to only purchase stocks in companies that have good social performance. This could include factors such as sustainability practices, ethical business practices, and community involvement. The other options (no-smoking policy, culturally diverse management team, hiring job candidates with HIV) are important issues, but not necessarily the key factors that a socially responsible mutual fund would prioritize in making investment decisions.

A Socially Responsible Mutual Fund Will Only Purchase Stocks in Companies