10+ TQV Private Limited Interview Questions and Answers

Asset classes are categories of investments that have similar characteristics and behave similarly in the market.

• Common asset classes include stocks, bonds, cash, and real estate.

• Each asset class has its own risk and return characteristics.

• Investors often diversify their portfolios by investing in multiple asset classes.

• Alternative asset classes such as commodities, private equity, and hedge funds are also available.

Global financial markets are currently volatile due to various factors such as geopolitical tensions, trade wars, and economic uncertainties.

• Geopolitical tensions, such as the conflict between the US and Iran, have led to market fluctuations.

• Trade wars, particularly between the US and China, have created uncertainty and impacted investor confidence.

• Economic uncertainties, including Brexit and slowing global growth, have also contributed to market volatility.

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities.

• Mutual funds are managed by professional fund managers.

• Investors buy shares in the mutual fund, which represents their ownership in the fund's assets.

• Mutual funds offer diversification, as they invest in a variety of stocks, bonds, or other securities.

• They provide an opportunity for small investors to access professionally managed portfolios.

• Mutual f...read more

The price-to-earnings (P/E) ratio is commonly used to evaluate shares when picking up shares.

• Price-to-earnings (P/E) ratio is a key metric to assess the valuation of a company's shares.

• A low P/E ratio may indicate that a stock is undervalued, while a high P/E ratio may suggest overvaluation.

• Comparing the P/E ratio of a company to its industry peers can provide valuable insights.

• Investors should also consider other ratios like price-to-book (P/B) ratio, price-to-sales (P/S) ra...read more

Alpha in financial markets is a measure of an investment's performance compared to a benchmark index.

• Alpha is used to assess the skill of a portfolio manager in generating returns above the market return.

• A positive alpha indicates outperformance, while a negative alpha indicates underperformance.

• Alpha is often used in conjunction with beta, which measures the volatility of an investment compared to the market.

IRR stands for Internal Rate of Return, while XIRR is a function in Excel used to calculate the internal rate of return for a series of cash flows.

• IRR is a financial metric used to evaluate the profitability of an investment by calculating the rate of return that makes the net present value of all cash flows equal to zero.

• XIRR is a function in Excel that calculates the internal rate of return for a series of cash flows that are not necessarily periodic.

• IRR assumes that all ca...read more

Bloomberg is a financial data and news provider that offers a database of financial information.

• Bloomberg database provides real-time and historical financial data

• It includes information on stocks, bonds, currencies, and commodities

• The database also offers news articles and analysis on financial markets

• Bloomberg Terminal is a popular tool used by financial professionals to access the database

Cash flow, income statement, and balance sheet are key financial statements used to assess a company's financial health.

• Cash flow statement shows the inflow and outflow of cash over a period of time.

• Income statement shows the company's revenues, expenses, and profits over a specific period.

• Balance sheet provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

• These statements are essential for investors, analys...read more

EV stands for Enterprise Value, which is the total value of a company's equity and debt.

• EV = Market Capitalization + Total Debt - Cash and Cash Equivalents

• It is used to determine the total value of a company, including its debt

• EV/EBITDA is a common valuation metric that compares a company's EV to its EBITDA

• EV/Sales is another common valuation metric that compares a company's EV to its annual sales

• EV can be used to compare companies of different sizes and capital structures

Cash flows statement focuses on cash inflows and outflows, while fund flow statement focuses on changes in financial position.

• Cash flows statement shows the movement of cash in and out of a business during a specific period.

• Fund flow statement focuses on changes in financial position by analyzing the sources and uses of funds.

• Cash flows statement helps in assessing the liquidity and solvency of a business.

• Fund flow statement helps in understanding the long-term financial heal...read more

CRE stands for carbapenem-resistant Enterobacteriaceae. Types include KPC, NDM, VIM, and OXA.

• CRE is a type of bacteria that is resistant to carbapenem antibiotics

• Common types of CRE include KPC, NDM, VIM, and OXA

• CRE infections are difficult to treat and can be life-threatening

The Gordon Growth Method is a way to value a stock based on the present value of future dividends, assuming a constant growth rate.

• Calculates the intrinsic value of a stock by discounting future dividends at a constant growth rate

• Formula: V = D / (r - g), where V is the intrinsic value, D is the expected dividend, r is the required rate of return, and g is the growth rate

• Assumes dividends will grow at a constant rate indefinitely

• Commonly used in dividend discount models for s...read more