Finance Interview Questions | Glassdoor

# Finance Interview Questions

22,152

Finance interview questions shared by candidates

## Top Interview Questions

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Oct 1, 2010

### Manager of Finance at The Home Depot was asked...

Nov 9, 2011
 If a customer asked you how much paint we sell in a year and you had to calculate it on a napkin during a meeting, how would you do that?4 AnswersA lotI would take the gross sales (no discounts nor returns) and divide by the average price of paint. Of course you could discuss volume/mix considerations but this would not be back of the napkin. Hope this helps.I'd dip (dunk) that napkin in my glass of wine and ask the interviewer if that was close enough to the truth...Show More ResponsesI don't understand why a customer would need to know this, nor is it their right/ business to know. And without knowing the cooperate policy, I would direct them to speak to a manager. (Now I'm curious what this scenario constitutes 'paint')

### 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.

Aug 10, 2010

### Executive Assistant to Vice President/Operation and Financial Controller at Par Electrical Contractors was asked...

Apr 14, 2016
 Can I balance a high stressed work environment and role being that I was a single mother.2 AnswersAs long as the company allowed my son to come first in my priorities, I would be able to balance and maintain work and personal life.That was an illegal question they asked if it is about your parental, marital, or health status.

### 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.

### Chief Financial Officer at Pocket Teller was asked...

Nov 24, 2015
 How important is our mission to you? Have you ever felt your work changed the financial future of the customers you served?1 AnswerI gave the actual story of how I won my own children's admiration by having them understand how my career had served to enhance the economic circumstances of millions of families.

### Financial Solutions Advisor at Bank of America was asked...

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.

### Accounting/Finance Intern at ConocoPhillips was asked...

Oct 17, 2012
 How have you used microsoft excel in to help solve a problem.1 AnswerKept my hours when doing privated contracting. Also, kept items expenses.

### Personal Financial Counselor at Zeiders Enterprises was asked...

Aug 10, 2016
 Give an example of a free resource you would refer a client to if they needed additional non biased and no cost information.1 AnswerMilitary Onesource
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