Have a technical interview lined up in Asset Management? Then make sure you can answer each of the below questions competently. Your job depends on it!
1. What is value investing and how is it different to growth investing?
2. What's the formula for free cash flow?
3. What is the difference between net income and free cash flow?
4. Describe 3 important ratios used in value investing including their formula.
5. What traits might an undervalued stock exhibit?
6. What sort of information would you expect to see on a balance sheet?
7. Explain one important way in which a balance sheet is different from both an income statement and a cash flow statement.
8. What is WACC?
9. What is the capital asset pricing model?
10. What is leverage?
11. Do you know any leverage ratios? Which ones?
12. Please describe one or more studies that validate the virtues of value investing?
13. Tell me about a stock that might be undervalued in the S&P500 and why.
14. Tell me about one key proponent of value investing.
Book a mock interview to ace that interview!
Best of luck!!
I created my investment banking blog in 2012 as soon as I resigned from i-banking & published my book, To Become An Investment Banker.
Initially published at girlbanker.com, all posts have now been subsumed into my personal website under katsonga.com/GirlBanker.
These blog posts make it as straight-forward for you as possible to get into a top tier investment bank.
I have 7 years of front office i-banking experience from Goldman Sachs and HSBC, in both classic IBD (corporate finance) and Derivatives (DCM / FICC).
I'm also a CFA survivor having passed all three levels on the first attempt within 18 months - the shortest time possible.