MBAD 617 – Dr. Leon
Class Exercise #7: Socially Responsible Investing
Student Name # 1: ____________________________________________
Student Name # 2: ____________________________________________
Refer to the DataEnvAnalysis.xls model and the Domini Social Index website link on the
website’s course outline.
1. Go to http://www.kld.com/indexes/index.html and click on the DS400 Index
hyperlink. The DS400 is an index that is subject to multiple social screens. Browse
through the description of the methodology, performance and FAQs for Domini 400
Social Index before answering the following questions:
a. How does the composition of the DS400 index holdings compare to the
composition of the S&P500?
b. Describe the screens that the DS400 index uses:
i. Social and environmental:
ii. Other:
c. What impacts have the social screens had on the portfolio’s performance
and financial return over the last year? The last ten years?
2. Assume that you have been asked to identify 400 companies out of a list of 600 to
include in an index similar to the Domini Social Index. How would you use the Data
Envelopment DEA Model presented in class to help you? What would you use as
output variables? Input variables? What factor(s) would the DEA model overlook
when considering whether to include a company in its portfolio?