Acuity Knowledge Partners Analyst Interview Questions, Process, and Tips

Q1. What is Alpha in financial markets?
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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.
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Q1. What is your opinion on global financial markets currently?
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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, hav
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Q2. Open ended question, so have an understanding of what is happening in the market.
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Q1. Capital markets, mutual funds, statistics basics like mean median mode standard deviation, bonds
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Q1. Bonds, capital markets, situation based questions
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Questions were related to Valuation and Industry research. General basic understanding of finance. Some questions related to Excel.

Q1. Rechecking all the concepts discussed in Round 1, and asked family background, Past experiences, about Internships etc.
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Q2. What is IRR and how is it different from Xirr?
Ans. 
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...read more
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Q3. Explain the Gordon Growth Method
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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 i...read more
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Q4. While picking up shares which ratio should be seen?
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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 rati...read more
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Q1. Basics of accounts
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Q2. Depreciation ,golden rule of accounting ,basics of finance
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Q1. Some more accounting questions, and about diff between operating and finance lease
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Q2. Explained cash flow, income statement balance sheet
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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 e...read more
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Q1. Ratios analysis, financial statements,Gk, behavioural questions
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Basic questions of finance

Q1. 1. EBITDA 2. Deferred expenses, deferred revenue, accrued income 3. Difference in Interest coverage ratio Debt service ratio 4. Difference between trade payable and debt 5. Net worth 6. Goodwill of the com...read more
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Basic questions of finance

Q1. 1. EBITDA 2. Deferred expenses, deferred revenue, accrued income 3. Difference in Interest coverage ratio Debt service ratio 4. Difference between trade payable and debt 5. Net worth 6. Goodwill of the com...read more
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Basic questions of finance

Q1. 1. EBITDA 2. Deferred expenses, deferred revenue, accrued income 3. Difference in Interest coverage ratio Debt service ratio 4. Difference between trade payable and debt 5. Net worth 6. Goodwill of the com...read more
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Q1. Self introduction, Journal entry
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Q1. FS linking, Ratio, Excel
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Q1. FS linking,Basic stock market,Ratio
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