Finance Analyst Interview Questions | Glassdoor

Finance Analyst Interview Questions

6,892

Finance analyst interview questions shared by candidates

Top Interview Questions

Sort: RelevancePopular Date

Finance Analyst at Morgan Stanley was asked...

Apr 3, 2011
 3. Stock A has a volatility of 20%, B has a volatility of 30%, and their correlation coefficient is 50%. They have the same expect returns. Suppose we can buy x share of A, and 1-x share of B. Then what the x should be for us to invest to make our portfolio has the minimum volatility? 1 AnswerThe vols add in quadrature, with the caveat that the interference term has the correlation factor in there. So: sig(port)^2 = x^2*sig(A)^2+(1-x)^2*sig(B)^2+2*x*(1-x)*sig(A)*sig(B)*rho(AB) Take the partial with respect to x and set that equal to zero. Solve for x and get: x = 6/7

Senior Financial Analyst at Dana Incorporated was asked...

May 29, 2010
 Why are dividends not part of the Income Statement?1 Answerbecause dividends are shareholder income and not firm income. the income statement only contains firm income. dividends are listed under shareholder equity.

Financial Analyst at Houlihan Lokey was asked...

Jul 18, 2014
 decompose the CAPM model and discuss limitations3 Answerssmall company premium, international premium, etcThe CAPM which is E(r) = Rf + Beta *(Rm A model that describes the relationship between risk and expected return and that is used in the pricing of risky securities. Capital Asset Pricing Model (CAPM) The general idea behind CAPM is that investors need to be compensated in two ways: time value of money and risk. The time value of money is represented by the risk-free (rf) rate in the formula and compensates the investors for placing money in any investment over a period of time. The other half of the formula represents risk and calculates the amount of compensation the investor needs for taking on additional risk. This is calculated by taking a risk measure (beta) that compares the returns of the asset to the market over a period of time and to the market premium (Rm-rf).Capital Asset Pricing Model (CAPM) consists of E(r) = Rf + B(Rm-Rf) Rf1 = Risk free rate which usually consists of Beta = company's stock performance against stock market Rm = Expected return from market CAPM ASSUMPTIONS Investors hold diversified portfolios This assumption means that investors will only require a return for the systematic risk of their portfolios, since unsystematic risk has been removed and can be ignored. Single-period transaction horizon A standardised holding period is assumed by the CAPM in order to make comparable the returns on different securities. A return over six months, for example, cannot be compared to a return over 12 months. A holding period of one year is usually used. Investors can borrow and lend at the risk-free rate of return This is an assumption made by portfolio theory, from which the CAPM was developed, and provides a minimum level of return required by investors.

Senior Financial Analyst Climate Products at Honeywell was asked...

Mar 1, 2011
 How would you handle an irrate internal customer during a business meeting?2 AnswersGood indication of behaviors that are common in this organization. No job is worth total humiliation.I would definetly keep my cool and act very professional and say... I understand your concerns. Please send me your issues in an email and I will make sure I set up a conference call so we can discuss them in further detail.

Financial Analyst at Wells Fargo was asked...

Oct 10, 2015
 How did I handle finding a discrepancy of details.1 AnswerI reported to my leader and we resolved the discrepancy through analysis and investigation.

Nov 4, 2009

Financial Analyst at Two Sigma was asked...

Aug 17, 2009
 You are to write a method getMissingLetters, which takes a String, sentence, and returns all the letters it is missing (which prevent it from being a pangram)9 AnswersFirst you have to know that a pangram is a string, sentence, that uses every letter of the alphabet at least once. Comes from the greek, Pan (every) and gramma (letter). If you didn't know that, couldn't figure out the derivation of the word, or weren't told it in the interview - you might be screwed. Otherwise, getMissingLetters should allocate a string (or pointer to an array of chars if C/C++) in which to return the result, a static string which basically just holds the letters of the alphabet, and an array of 27 single ints to hold the count of the number of times a particular letter appears in the sentence. Then create two loops, the outer loop will move through the alphabet (index 0 to 26) on the static string/array, the inner loop will index into (or moving a pointer along) the string holding the input sentence (exiting if you've reached the end of the string (in C/C++ this is '\0' the null char). Within that inner loop you want to check the current letter being pointed to in the alphabet against the current letter being pointed to in the sentence (be careful if writing C/C++ code as to how the sentence is stored in memory). If the value of the characters being pointed to for each array are equal, then increment the value of the integer at the array position with the same index as the current letter being counted. After each inner loop completes, the outer loop counter will move the index into each array for you (or you can increment the pointers to the alphabet and alphabet count arrays). After these two arrays complete, you need to finalize the results. To do this you need one last loop to cycle once more through the alphabet string and alphabet counter. Within this loop you will check the value of the letter count. If it is greater than 0 you move to the next letter, if it is 0, then you want to copy the value of the letter into the current character pointed to in the result string (which should have at least 26 characters assuming a sentence is at least 1 character). Once this loop completes just return the return string (or a pointer to it) In C++ you might be able to utilize some of the STL Classes to do all of this, but if you do it in straight C with lots of pointer arithmetic it will execute much more quickly.Strong no hireAssuming ASCII string: void PrintMissingCharacters(char *InputString) { UINT32 foundChars = 0xFC000000; char* stringChar = InputString; int bitIndex; while (stringChar != '\0') { if (stringChar >= 'a' && stringChar = 'A' && stringChar <= 'Z') { bitIndex = stringChar - 'A'; BitSet(&foundChars, bitIndex); } } for (int i = 0; i < 26; i++) { if (!BitTest(&foundChars, i)) { printf("%c, ", ('a' + i)); } }Show More ResponsesUsing Haskell to keep things terse: include Data.Char getMissingLetters sentence = filter (`notElem` map toLower sentence) ['a'..'z'] or for the more internationally inclined, who might be less biased towards English. generalizedGetMissingLetters sentence alphabet = filter (`notElem` map toLower sentence) alphabet Main> getMissingLetters "hello" "abcdfgijkmnpqrstuvwxyz"#!/usr/bin/perl \$s='The good brown fox, hi.'; print join '', map {\$s!~/\$_/?\$_:''} a..z;#!/usr/bin/python """\ Example solution using Python """ import string def getMissingLetters(sentence): """Use sets to find unused characters from the alphabet """ return ''.join(set(string.lowercase)-set(sentence.lower()))Why were you asked this question for a financial analyst interview?#include #include using namespace std; string CheckPangrams(const string str) { string s = str; string result = ""; int hist = {}; for (int i=0; iimport java.util.*; public class PangramChecker { private final Character[] charSet = {'a', 'b', 'c', 'd', 'e', 'f', 'g', 'h', 'i', 'j', 'k', 'l', 'm', 'n', 'o', 'p', 'q', 'r', 's', 't', 'u', 'v', 'w', 'x', 'y', 'z'}; private Set alphabetSet = new TreeSet(Arrays.asList(charSet)); private Set inputSet = Collections.emptySet(); public PangramChecker(String s) { if (s == null) { s = ""; } inputSet = new HashSet(s.toCharArray().length); for (Character c : s.toCharArray()) { inputSet.add(c); } } public Set check() { alphabetSet.removeAll(inputSet); System.out.printf("\n Missing chars are: " + alphabetSet); return alphabetSet; } public static void main(String[] args) { Scanner scanner = new Scanner(System.in); String s = scanner.nextLine(); PangramChecker pangramChecker = new PangramChecker(s.toLowerCase()); pangramChecker.check(); } } import java.util.Arrays; import java.util.List; import java.util.Set; import java.util.TreeSet; import static org.junit.Assert.*; public class PangramCheckerTest { @Before public void setUp() throws Exception { } @Test public void testCheck(){ String s = "Hello World!"; PangramChecker pangramChecker = new PangramChecker(s.toLowerCase()); Set result = pangramChecker.check(); Character[] charArray = {'a','b', 'c', 'f', 'g', 'i', 'j', 'k', 'm', 'n', 'p', 'q', 's', 't', 'u', 'v', 'x', 'y', 'z'}; List l = Arrays.asList(charArray); Set expectedOutput = new TreeSet(l); assertTrue(result.equals(expectedOutput)); } } although this does not check the char boundary "a" to "z"

Financial Analyst at J.P. Morgan was asked...

Sep 29, 2012
 You have a bat and a ball. The bat is 1 dollar more than the ball and they both add up to 1.50. How much are each?10 Answers1.25 and 0.25Why not 1.50 and 0.00 if question does not place any restrictions on values for bat and ball.Why not \$1.00 for bat and \$.50 for the ballShow More Responses1.25 for the bat and .25 for the ball... You could not value the bat at 1.50 or 1.00, because they are not equal to 1 dollar more than the ball.1.25 for the bat and .25 for the ball... You could not value the bat at 1.50 or 1.00, because they are not equal to 1 dollar more than the ball.Are you guys serious? The ball is \$1 more!!! 1.50 and 0 would be \$1.50 more!! Do not apply.I knew there would be at least a couple who said 1 and .50 ... lol.It's 1.25 and .25 . The price of the bat has to be a dollar more than the price of the bat . If the ball is .50 cents then the bat would be 1.50 . Meaning that in total it would be 2 dollars . Now as for the bat being 1.50 and the ball being 0.00 . The bat has to be a dollar more than the ball. A dollar more than 0.00 is 1.00 . So the ball and the bat together would only be 1.00. When the ball is .25 , the bat would be priced at 1.25. When you add the ball and the bat together (1.25 + .25) the total is 1.50 .ball costs x and bat costs x+1.the adds up x+(x+1)=1.5 so 2x=0.5 and x=0.25 so ball costs 0.25 and bat cost x+1 which is 1+0.25=1.25\$1:25 for the bat, and \$0.25 for the ball.