Market research Interview Questions

I think I said Monte Carlo, delta, gamma and Black-Scholes.

Typically there are 3 ways in the industry to calculate VaR: 1. Historical (by far the most common, IME) 2. Parametric (not very useful, as returns tend to not be normal, unless you use EVT) 3. Monte Carlo (more often used in fixed income and other credit/debt portfolios than other asset classes)

Read the previously mentioned article

Loans , Fixed deposit , good Yearly turn over of bank , lockers

Could you please tell me what was the case study about? Did you have to pitch something? thank you!

the case study was about FX and brexit. I had to assume i worked for nomura and ring a foreign bank to discuss what to do after the volatility in the market after brexit. In all honestly, i struggled as i study chemistry and this was waaaaay out of my league. But they judged you given your level of knowledge and how you approached the study.

Should have Wiki before

The flaws are largely in its assumptions, namely: 1. It assumes lognormal returns 2. It assumes 24/7 trading (i.e., no jumps in prices) 3. It assumes frictionless markets

Be sure to mention all the relevant player and understand the role each of these guys had. If you mention wall street and the big banks, be sure to have a good answer for the follow up question: why would like to work in such an environment?

It was absence of due diligence and thats one of the reasons why all the global banks have invested heavily on CDD / KYC

EBITDA

expenditure. If the company is spending more than it is, its in trouble. Also, those figures are just snapshots. You need graphs of these over time to see if any trends are emerging.

I have no idea on this one.