Crisil Equity Research Analyst Interview Questions and Answers

Q1. What do you understand by Beta
Ans. 
Beta is a measure of a stock's volatility in relation to the market.
• Beta measures the sensitivity of a stock's returns to changes in the market.

• A beta of 1 indicates that the stock's price will move with the market.

• A beta greater than 1 indicates the stock is more volatile than the market.

• A beta less than 1 indicates the stock is less volatile than the market.

• Beta is used in the Capital Asset Pricing Model (CAPM) to ca
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Finanical modelling to be done slected companies or sectors

Q1. Describe dcf valuation models in financial modelling process.
Ans. 
DCF valuation models are used to estimate the intrinsic value of a company based on its future cash flows.
• DCF stands for Discounted Cash Flow

• It involves projecting future cash flows and discounting them back to their present value

• The discount rate used is typically the company's cost of capital

• The resulting present value is the estimated intrinsic value of the company

• DCF models are commonly used in equity research to d...read more
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Q2. What do mean by beta and how to calculate it.
Ans. 
Beta is a measure of a stock's volatility in relation to the market. It indicates the stock's sensitivity to market movements.
• Beta is calculated by comparing the stock's returns to the market returns over a period of time.

• A beta of 1 indicates that the stock's price moves in line with the market.

• A beta greater than 1 indicates that the stock is more volatile than the market.

• A beta less than 1 indicates that the stock i...read more
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Q1. Why do you want this role
Ans. 
I am passionate about analyzing financial markets and helping investors make informed decisions.
• I have a strong interest in finance and enjoy analyzing financial data

• I have a knack for identifying investment opportunities and predicting market trends

• I enjoy the challenge of conducting in-depth research and providing valuable insights to clients

• I want to contribute to the success of a reputable equity research team

• I am ...read more
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Q2. GDP and GNP difference
Ans. 
GDP measures the value of goods and services produced within a country, while GNP measures the value produced by a country's residents, regardless of location.
• GDP only includes production within a country's borders, while GNP includes production by a country's citizens regardless of location.

• GDP is used to measure a country's economic output, while GNP is used to measure a country's economic strength.

• For example, if a ...read more
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Q1. What is financial modeling? What is enterprise value? Name some of the Valuation methods ?
Ans. 
Financial modeling is the process of creating a mathematical representation of a company's financial situation.
• Financial modeling involves using historical data and assumptions to forecast future financial performance.

• It helps in analyzing the impact of various factors on a company's financials.

• Financial models are used for budgeting, forecasting, valuation, and decision-making.

• Enterprise value is a measure of a compan...read more
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Q2. Definitions, formula etc
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Q1. What do you understand by Beta
Ans. 
Beta is a measure of a stock's volatility in relation to the market.
• Beta measures the sensitivity of a stock's returns to changes in the market.

• A beta of 1 indicates that the stock's price will move with the market.

• A beta greater than 1 indicates the stock is more volatile than the market.

• A beta less than 1 indicates the stock is less volatile than the market.

• Beta is used in the Capital Asset Pricing Model (CAPM) to ca
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Q1. Basic questions
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Q2. Previous experience
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Finanical modelling to be done slected companies or sectors

Q1. Describe dcf valuation models in financial modelling process.
Ans. 
DCF valuation models are used to estimate the intrinsic value of a company based on its future cash flows.
• DCF stands for Discounted Cash Flow

• It involves projecting future cash flows and discounting them back to their present value

• The discount rate used is typically the company's cost of capital

• The resulting present value is the estimated intrinsic value of the company

• DCF models are commonly used in equity research to d...read more
Answered by AI
Add your answer
Q2. What do mean by beta and how to calculate it.
Ans. 
Beta is a measure of a stock's volatility in relation to the market. It indicates the stock's sensitivity to market movements.
• Beta is calculated by comparing the stock's returns to the market returns over a period of time.

• A beta of 1 indicates that the stock's price moves in line with the market.

• A beta greater than 1 indicates that the stock is more volatile than the market.

• A beta less than 1 indicates that the stock i...read more
Answered by AI
Add your answer

Q1. Why do you want this role
Ans. 
I am passionate about analyzing financial markets and helping investors make informed decisions.
• I have a strong interest in finance and enjoy analyzing financial data

• I have a knack for identifying investment opportunities and predicting market trends

• I enjoy the challenge of conducting in-depth research and providing valuable insights to clients

• I want to contribute to the success of a reputable equity research team

• I am ...read more
Answered by AI
Add your answer
Q2. GDP and GNP difference
Ans. 
GDP measures the value of goods and services produced within a country, while GNP measures the value produced by a country's residents, regardless of location.
• GDP only includes production within a country's borders, while GNP includes production by a country's citizens regardless of location.

• GDP is used to measure a country's economic output, while GNP is used to measure a country's economic strength.

• For example, if a ...read more
Answered by AI
Add your answer