Summer Analyst Interview Questions in San Francisco, CA | Glassdoor

# Summer Analyst Interview Questions in San Francisco, CA

155

Summer analyst interview questions shared by candidates

## Top Interview Questions

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### Summer Analyst at Compass Lexecon was asked...

Mar 14, 2012
 Under what conditions would price collusion occur?2 AnswersOligopolyFewer number of firms, possibility to monitor other firms' prices

### Summer Analyst at Cornerstone Research was asked...

Feb 22, 2011
 How do you use statistics to examine if the airline is manipulating prices.1 AnswerI don't have much background in statistics so just mentioned regression, but the interviewer said something like a dummy variable, which I still don't quite understand till this day

### Real Estate Investment Summer Analyst at Morgan Stanley was asked...

Feb 8, 2014
 Would IRR be higher for a property generating high cash flow, or one generating nothing at all?4 AnswersIRR is higher for property generating no cash flows, since it carries greater risk.I hope you didn't tell them that. In fact, the IRR is the rate which allows all incoming and outgoing cash flows to be equal. The question is a bit ambiguous considering the IRR is also heavily dependent on the money invested (outgoing). With respect to the question, if you are receiving high returns relative to the amount invested, that would lead to a higher IRR. In fact, an investment that generates nothing at all would have an IRR of -100%. Hope this helps anyone who actually receives a poorly worded question like this. Extra bit of help: IRR > Risk free rate of return -> Project should be considered IRR You just lost your company a lot of moneyI see this question as really asking: "Do you know the definition of an IRR?" since the original question is so ambiguous. It merits a discussion of IRR rather than a yes/no answer.Show More ResponsesYou can also think of it this way: IRR is the discount rate at which NPV = 0 (breakeven). This means you can assume a simplified model of NPV = –Cost + CF/r 0 = -C + CF/IRR C*IRR = CF Assuming that the investment (cash inflow into the projects) is the same for both projects, we see that as cash flow(s) increase, so does the IRR. tl;dr: IRR is HIGHER for property generating HIGHER cash flows.

### Summer Analyst at J.P. Morgan was asked...

Jul 23, 2014
 A drop of water grows in a pond every second, it takes 60 seconds to fill the pond. How long does it take to fill 1/4 the ponds?3 Answersi rather go for 15 seconds ? ( 60/4 )we're assuming it's "doubling" every second Alex. so one drop doubles to two, which doubles to four. so if it takes 60 seconds to fill in pond that means it is doubled the amount of 59 which is also double of 58 or 1/4 of 6058 seconds

### Summer Analyst at Compass Lexecon was asked...

Mar 14, 2012
 What would happen to the price of chicken if the supply for beef increased?1 AnswerAssuming chicken and beef are substitues: Increase in the supply of beef --> decrease in the price of beef --> decrease in the demand for chicken --> decrease in the price for chicken.

### Summer Analyst at J.P. Morgan was asked...

Apr 19, 2012
 What are the five Cs of credit?1 AnswerCharacter Capacity Collateral Capital Conditions

### Summer Analyst at J.P. Morgan was asked...

Apr 19, 2012
 Why JP Morgan?1 AnswerGave a detailed story about tier one capital, Jamie Dimon, and and the culture of the firm.

### Summer Financial Analyst at Wells Fargo was asked...

Aug 7, 2015
 Which financial statement is the most important to evaluate a company's ability to pay back a loan?1 AnswerCash flow - specifically cash flow from operations.

### Summer Analyst PAG BlackRock Solutions at BlackRock was asked...

Feb 23, 2013
 Got drilled about how Quantitative Easing works, and 3 tools Fed has to control interest rates and Money Supply. 1 AnswerFed uses Open Market Operations (buys or sells bond on open market), can set required reserve ratio, or change the discount rate at holding reserves at the Fed.

### Summer Analyst at Wells Fargo was asked...

Dec 3, 2014
 How do you value a small foreign tech company with no comparable transactions1 AnswerI'm not sure, I missed this question
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