Portfolio Analysis

Most common questions and answers used to hire Portfolio Analyst. We’ve compiled a list of the most common and frequently asked interview questions in Portfolio Analysis Job Interview. If you want to ace your job interview, then checkout these Interview Questions.

Q.1 What is Primary market?
Market where new issues of securities are offered.
Q.2 What are financial intermediaries?
It bring lenders and borrowers together
Q.3 Consider the Treynor-Black model. The alpha of an active portfolio is 2%. The expected return on the market index is 12%. The variance of the return on the market portfolio is 4%. The nonsystematic variance of the active portfolio is 2%. The risk-free rate
Q.4 Do you have any experience working as a Portfolio Manager?
This is a very direct question that requires a truly honest answer – list your experience with reference to the position applied for. But in case you don’t have any experience then you must think about the question ahead of time ad listing your strengths to compensate the lack of experience. In this way, we can turn a simple ‘no’ into an opportunity to demonstrate your awareness of related skillsets. Sample Answer - I have work experience with ABC Ltd. for a short span while working under my senior at my last job I really got to learn the ropes about Portfolio Analysis.
Q.5 What systems have you developed to reduce errors in work?
Whether it is rain or shine, as a policy I always ensure that whatever task is assigned get reviewed at least 3 times over and referenced again before it goes for execution.
Q.6 What do you understand by Portfolio Turnover of a fund?
It is the measure of the amount of buying and selling activity in a fund. Where turnover is referred as the lesser of securities sold or purchased during a year divided by the average of monthly net assets. A turnover of 100 percent, for instance positions are held on average for about a year.
Q.7 What are the advantages of investing in a mutual fund?
In this case the investors are exposed to reduced investment risk due to portfolio diversification, economies of scale in transaction cost and professional management. Some advantages include - 1. Limited risk 2. Diversified Investment 3. Not much tracking required 4. Tax Benefits
Q.8 Who is a Custodian?
Custodian, is an independent organisation, that has the physical possession of all securities purchased by the mutual fund, and undertakes responsibility for its handling and safekeeping. For example Stock Holding Corporation of India Ltd (SCHIL) is the custodian for most fund houses in the country.
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