Finance interview questions | Glassdoor

# Interview Questions

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## Interview Questions

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### 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

### Customer Service Representative/Mortgage Loan Officer at Fortren Funding was asked...

Sep 4, 2015
 What are three skills you would say a good salesman should have?1 Answer-Ability to communicate effectively/persuasively -The desire to continually keep learning their field of sales -A healthy competitive spirit

### Staff Accountant II at Kearney & Company was asked...

Jan 5, 2013
 Name the 4 most important financial statements and their uses.1 AnswerBalance Sheet-data about available resources as well as the claims to those resources Income Statement-data about the profitability of the company detailing sources of revenue and the expenses which reduce profit Cash Flows- illustrates the inflow and outflow of cash within the business. It shows where the cash comes from into the company, and how it’s used Statement of Retains Earnings-focuses on changes in retained earnings

### Investment Banking Analyst at Cowen Group was asked...

Feb 4, 2010
 Could you walk me through the cash flows statement? What are some items that would be found under each heading?1 AnswerThe cash flows statement shows cash flows from operating, investing and financing activities. In the operating activities area, for example, you would add back depreciation expense to net income (since no cash has actually left your firm). Investing activities could include money from sales of land, and financing could include receiving cash from a loan, or giving out dividends to shareholders.

Apr 24, 2014
 Role play with interviewer. Interviewer calls you to invest in stock that was recommended by neighbor.1 AnswerIt is your job to sell him on the idea of mutual funds. Ask him questions about his current situation, know the customer, understand asset allocation, understand diversification and give specific examples of why investing large amounts of money in one stock takes on a lot of risk.

### Manager, Corporate Tax at Putnam Investments was asked...

Aug 9, 2012
 Tell me a situation or time when you were able to save the company money by lowering a tax expense at your last job.1 AnswerMy last company was paying a lot in gross receipts tax for the state of Washington. I did a lot of research and found a way to apportion sales differently and saved the company 500K in tax expense for one year.

### Managing Director at Integrated Capital Strategies was asked...

Jun 15, 2011
 What are your strategies for closing a deal with a client?1 AnswerFocus on the value proposition and make a good business case for our services as compared to other options.

### Operational Risk Management & Analysis Internship/Credit Risk Management & Advisory Internship at Goldman Sachs was asked...

Jun 24, 2012
 How do you determine the risk profile of a company?1 Answerfinancial statements, cash flows, financial ratios, historic events and company developments