15 Most Common Investment Banking & Finance Interview Questions
11/16/2009
15 Most Common Investment Banking & Finance Interview Questions
The most common of the bank's investment banking interview interview questions, including (in some places in the tough side, but they come up very often, as a weight loss of the graduate employment market, the financial means to be more severe an increasing number of candidates list):
- 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, questions asked during the interview for a job in investment banking from investment banking, entry-level]
- 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
[Typically asked during investment banking interviews for quantitative investment banking finance jobs]
- 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 investment banking interviews for bank derivatives trading jobs]
- How do you calculate an option’s delta?
[Typically asked during investment banking interviews for derivatives trading jobs]
- When can hedging an options position make you take on more risk?
[Typically asked during investment banking interviews for trading jobs]
- Are you better off using implied standard deviation or historical standard deviation to forecast volatility? Why?
[Typically asked during investment banking interviews for quantitative finance jobs]
- Describe “duration” and “convexity”. Describe their properties and uses
[Typically asked during investment banking interviews for graduate investment banking jobs]
- 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 colours do not match, B wins $2.
Than that of A or B or do I become a problem?
[Typically asked during investment banking interviews for quantitative finance or derivatives jobs]
- How do you “value” yourself? Here “value” means in financial terms
[Typically asked during investment banking interviews for MBA finance jobs or experienced banking hires]
- What distinguishes you from other candidates we might hire?
[Typically asked during investment banking interviews for graduate investment banking vacancies]
- If you could go on a cross-country car trip with any three people, who would you choose? Why?
[Typically asked during investment banking interviews for corporate finance / mergers & acquisitions banking jobs]
- Tell be about a stock you like or hate and why
[Accounting for any investment banking job interview questions for finance and investment banking job! ]
- What is the difference between default and prepayment risk?
[Typically asked during investment banking interviews for credit jobs / risk management jobs]
- How would you move mount Fuji?
[Typically asked during investment banking interviews for consulting jobs or graduate accounting jobs]
- Estimate the annual car demand for car batteries
[Typically asked during investment banking interviews for corporate finance jobs, mergers & acquisition banking jobs or consulting jobs]