There is no clear consensus about whether green investments perform better, worse orequal to conventional brown investments. With the rising popularity of socialinvestments, it becomes increasingly important to understand these investments. Therecent launch of the MSCI Climate Paris Aligned Indices (CPAI) aim to illustrate thedevelopment of an economy that is in line with the requirements and goals of the ParisAgreement from 2015. In this research we aim to find out whether the MSCI Europe,USA and EM Climate Paris Aligned Indices outperform their parent indices. We do thisby comparing performance measures such as the net return, standard deviation of netreturns and Sharpe ratio. We further conduct an ordinary least squares regression to testwhether the betas and Jensen´s alphas of the CPAI differ significantly from their parentindices.The results show that only the USA CPAI clearly outperforms its parent index. This isdue to it having a higher Sharpe Ratio and Jensen’s alpha as well as higher monthly netreturns and a lower standard deviation compared to its parent index. The regressionshows that it does perform better than the parent index. The results for the EM CPAIshow that it performs in a similar way as its parent index. It has a higher monthly netreturn but also slightly higher standard deviation which leads to an equally large Sharperatio. Neither the estimated Jensen’s alpha nor the beta are significantly different fromthose of its parent index and thus the hypothesis of it performing equally as well as itsparent index cannot not be rejected. Lastly, the Europe CPAI has a higher Sharpe ratio,Jensen’s alpha and monthly net returns than its parent index, but it also exhibits a higherstandard deviation. The regression indicated that it performs in a similar way as itsparent index, no difference could be proven. In conclusion, this means that all CPAIperform at least equally as well as their parent indices, if not better.

This study examines the total cumulative return and the total risk-adjusted return for OMXSPI and the two investment strategies The Magic Formula and The Acquirer’s Multiple. The aim is to find out if it’s possible to beat the market over time in contradiction to the efficient market hypothesis. Data has been collected to cover a 15-year period between 2005 and 2020. The results end up challenging the efficient market hypothesis with higher total cumulative returns, but also fairly convincingly higher risk-adjusted returns from the strategies. The study also found that the Acquirer’s Multiple outperformed the Magic Formula with regards to both measures.