Epic Research Associate Financial Consultant Interview Questions and Answers

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

• Derivatives can be used for hedging, speculation, or arbitrage.

• Common types of derivatives include options, futures, forwards, and swaps.

• Derivatives allow investors to take on leverage and potentially amplify returns.

• Derivatives are traded on exchanges or over-the-counter (OTC) markets.

• Example: A call option on a st...read more

Beta is a measure of a stock's volatility in relation to the overall market.

• Beta indicates how much a stock's price moves in relation to the market as a whole.

• A beta of 1 means the stock moves in line with the market, while a beta greater than 1 is more volatile and less than 1 is less volatile.

• Beta helps investors assess the risk of a stock compared to the market.

• For example, a stock with a beta of 1.5 is expected to ...read more