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Finance interview questions and answers

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					Finance interview questions and answers




Some of the most common interview questions for an investment banking interview
include (some are a bit on the tough side but they DO come up very often, increasingly as
a means of trimming down the candidate lists as the finance graduate job market gets
harsher):

   1. How many degrees (if any) are there in the angle between the hour and the minute
       hands of a clock when the time is a quarter past three? [Typically asked during
       investment banking interviews for entry level investment banking graduate jobs]
   2. Find the smallest positive integer that leaves a remainder of 1 when divided by 2,
       a remainder of 2 when divided by 3, a remainder of 3 when divided by 4,... and a
       remainder of 9 when divided by 10 [Asked during interviews for quantitative
       finance jobs]
   3. Two standard options have exactly the same features, expect that one has long
       maturity, and the other has short maturity. Which one has the higher gamma?
       [Typically asked during interviews for bank derivatives trading jobs]
   4. How do you calculate an option's delta? [Asked during investment banking
       interviews for derivatives trading jobs]
   5. When can hedging an options position make you take on more risk? [Typically
       asked during interviews for trading jobs]
   6. Are you better off using implied standard deviation or historical standard
       deviation to forecast volatility? Why? [Asked during interviews for quantitative
       finance jobs]
   7. Describe "duration" and "convexity". Describe their properties and uses
       [Typically asked during investment banking interviews for graduate investment
       banking jobs]
   8. Two players A and B play a marble game. Each player has both a red and a blue
       marble. They present one marble to each other. If both present red, A wins $3. If
       both present blue, A wins $1. If the colors do not match, B wins $2. Is it better to
       be A or B, or does it matter? [Asked during interviews for quantitative finance or
       derivatives jobs]
   9. How do you "value" yourself? Here "value" means in financial terms [Typically
       asked during interviews for MBA finance jobs or experienced banking hires]
   10. What distinguishes you from other candidates we might hire? [Typically asked
       during investment banking interviews for graduate investment banking vacancies]
   11. If you could go on a cross-country car trip with any three people, who would you
       choose? Why? [Typically asked during interviews for corporate finance / mergers
       & acquisitions banking jobs]
   12. Tell be about a stock you like or hate and why [Asked by job interviewers for any
       accounting, finance or job!]
   13. What is the difference between default and prepayment risk? [Typically asked
       during interviews for credit jobs / risk management jobs]
    14. How would you move mount Fuji? [Typically asked during investment banking
        interviews for consulting jobs or graduate accounting jobs]
    15. Estimate the annual car demand for car batteries [Typically asked during
        interviews for corporate finance jobs, mergers & acquisition banking jobs or
        consulting jobs]


You also find more interview questions at blog: http://phoneinterviewquestion.blogspot.com


				
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