Goldman Sachs Analyst Interview Questions and Answers

CPI stands for Consumer Price Index, not the same as Grade Point Average (GPA).

• CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

• It is used to track inflation and price changes in the economy.

• GPA, on the other hand, is a measure of academic performance and represents a student's average grade point across courses.

• CPI and GPA ar...read more

Some games lack a Nash equilibrium, leading to unpredictable outcomes and strategic complexities.

• In a 2x2 matrix game, players may have strategies that lead to no stable outcome.

• Example: If both players choose to defect in a Prisoner's Dilemma, they both end up worse off.

• Another example is the 'Battle of the Sexes' where players prefer different outcomes, leading to multiple equilibria but no stable one.

• Games like...read more

The probability is 1/2.

• The person can either move forward or backward with equal probabilities.

• The probability of reaching 0 before 100 is 1/2.

• This is a simple random walk problem.

A metric to rank Indian cities for BPOs

• Consider factors like availability of skilled workforce, infrastructure, cost of living, and government policies

• Weight each factor based on its importance to the company

• Collect data on each factor for different cities and assign scores

• Rank cities based on their total score

• Examples of factors: number of universities, quality of transportation, cost of office space, tax incenti...read more

A call option is a financial contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a predetermined price within a specified time period.

• Call options are bought by investors who believe that the price of the underlying asset will rise in the future.

• The buyer of a call option pays a premium to the seller for the right to buy the asset at a predetermined price, known as the st...read more

Gold prices are increasing due to economic uncertainty and inflation concerns. US treasury bonds remain valuable due to their safe-haven status and reliable returns.

• Gold prices are increasing due to economic uncertainty and inflation concerns.

• Investors often turn to gold as a safe-haven asset during times of market volatility.

• The demand for gold is also influenced by factors such as geopolitical tensions and centr...read more