USAI Forge Interview Questions and Answers

Mutual funds are for retail investors while hedge funds are for high net worth individuals. Hedge funds have more flexibility but higher fees.

• Mutual funds are regulated by the SEC while hedge funds are not.

• Mutual funds are open to all investors while hedge funds are only open to accredited investors.

• Mutual funds have lower fees and are more transparent while hedge funds have higher fees and are less transparent.

• Mutual funds are more diversified while hedge funds can take more...read more

Recompiling stored procedures and updating statistics improves query performance.

• Recompiling stored procedures can help optimize execution plans.

• Updating statistics ensures the query optimizer has accurate information about the data.

• Both actions can improve query performance.

• Example: EXEC sp_recompile 'myStoredProc'; UPDATE STATISTICS myTable;

Tuning stored procedures involves optimizing query performance by analyzing execution plans and indexing.

• Analyze execution plans to identify bottlenecks

• Use appropriate indexing to improve query performance

• Avoid using cursors and temporary tables

• Minimize network traffic by reducing data transfer

• Use parameterized queries to avoid SQL injection attacks

NAV is calculated by subtracting liabilities from assets and dividing by total outstanding shares.

• Calculate the total value of assets held by the fund

• Subtract the total value of liabilities from the total value of assets

• Divide the result by the total number of outstanding shares

• NAV = (Total Assets - Total Liabilities) / Total Outstanding Shares

• Example: If a fund has $10 million in assets, $2 million in liabilities, and 1 million outstanding shares, the NAV would be $8 per sha...read more

Funds are pools of money collected from investors and managed by professionals to achieve specific investment objectives.

• Funds can be mutual funds, exchange-traded funds (ETFs), hedge funds, or private equity funds.

• Investors buy shares in the fund and the money is pooled together to invest in a diversified portfolio of assets.

• Fund managers make investment decisions on behalf of the investors and charge a fee for their services.

• Funds can be focused on specific asset classes, s...read more

A financial contract whose value is derived from an underlying asset or security.

• Derivatives are used for hedging or speculation in financial markets.

• Examples include futures, options, swaps, and forwards.

• They allow investors to take on risk without owning the underlying asset.

• Derivatives can be complex and require specialized knowledge to trade.

• They are regulated by financial authorities to prevent market manipulation and instability.

Bonds are debt securities issued by companies and governments to raise capital. Different types of bonds include government, corporate, municipal, and high-yield bonds.

• Government bonds are issued by national governments and are considered the safest type of bond.

• Corporate bonds are issued by companies and are riskier than government bonds.

• Municipal bonds are issued by state and local governments to fund public projects.

• High-yield bonds, also known as junk bonds, are issued by...read more