Quantitative Associate Interview Questions | Glassdoor

Quantitative Associate Interview Questions

94

Quantitative associate interview questions shared by candidates

Top Interview Questions

Sort: RelevancePopular Date

Quantitative Finance Summer Associate at Morgan Stanley was asked...

Aug 5, 2010
 At a party everyone shakes hands, 66 hand shakes occur, how many people are at the party? 9 Answers12requires explanationit's not 12, it's 11Show More Responses12sum of the series 66= n/2( 2*1 + (n-1)*1) n=12You can suppose there are n people in the room and think of them in a row. The first one has to shake hands with (n-1) people (because he doesn't have to shake hands with himself). The second one has already shaken hands with the first one, so he has (n-2) shakes remaining... and so on. So you have to sum: (n-1)+(n-2)+(n-3)+...+1= (n/2)*(n-1) Then you have to solve (n/2)*(n-1)=66 and you get n=12.n(n-1)/2=66 so n=12You can think of this problem as a combination problem: (N choose 2) = 66, and then solve for N. That is, N! / (2! (N-2)! ) = 66. Simplifying this equation leads to N(N-1)/2 = 66, and the integer solution to this problem is N = 12.66=x!/((x-2)!*2) which gives 12

Quantitative Finance Summer Associate at Morgan Stanley was asked...

Aug 5, 2010
 There are two stocks with the same expected value, with variance 0.3 and 0.2 and correlation 0.5. What proportion of each stock do you invest in to yield a minimum risk portfolio? 4 Answers100% in stock 2, with the smaller variance.No, if you can short, the variance could be reduced even further since the stocks are correlated.17/44 of the stock with variance of .3 and 27/44 from the stock with variance of .2Show More ResponsesCovariance = 0.3 * 0.2 * 0.5 = 0.03 Cov Matrix = c = [0.3 0.03; 0.03 0.2] Inv Cov Matrix = c_inv = [2000/591 -100/197; -100/197 1000/197] Answer = (c_inv * [1; 1])/([1 1] * c_inv * [1; 1]) = [17/44; 27/44]

Quantitative Finance Summer Associate at Morgan Stanley was asked...

Aug 5, 2010
 If W is standard Brownian Motion, for what values of n is W^n still a martingale? 3 AnswersBy Ito W^n is a martingale for n=0,1Agree, for any n>1 you get a drift termXt is a martingale you get f(Xt) is a martingale if f is linear otherwise convexity or concavity will increase or decrease the expectation, think of Jensen inequality.

Quantitative Finance Summer Associate at Morgan Stanley was asked...

Aug 5, 2010
 Evaluate the integral from 0 to pi/6 of sec(x) dx.3 AnswersReaching back to high school, I'd say -.5ln(3)/2ln(root 3)

Global Markets Quantitative Strategies Summer Associate Program at Bank of America was asked...

Oct 4, 2019
 Let B and C be two r.v. uniformly distributed in [0,1]. What is the probability of the event that x^2 + B x +C =0 has real roots.1 AnswerThe equation has real roots iff B^2-4C >=0. P(B^2>4C) = \int_0^1 \int_0^{B^2/4} dC dB

Quantitative Management Associate Program (QMAP) at Bank of America was asked...

Jan 23, 2014
 You should always be prepared for math problems related to the topics you list on your resume. I was asked what the convergence rate of Monte Carlo simulation is.1 AnswerIt can be derived from the perspective of confidence interval.

Quantitative Research Associate at J.P. Morgan was asked...

Jun 22, 2013
 If implied volatility is lower than realized, how does one make money hedging a call option?2 Answershedge with implied volbuy the call (the option is "cheap") and delta-hedge it. You will be long implied vol and it's good for you since you expect it to rise !

Quantitative Associate at J.P. Morgan was asked...

May 19, 2019
 Describe the algorithms to solve KNN. 1 Answer- two-step approximation, iterate.

Quantitative Operations Associate at Bank of America was asked...

Sep 5, 2013
 what is the other way of doing this? 1 Answernot really matter as long as you have a solution.

Quantitative Strategies Summer Associate at Bank of America was asked...

Jan 23, 2018
 What is Gamma trading? Be the first to answer this question
110 of 94 Interview Questions