MSCI Interview Questions, Process, and Tips

Q1. Options payoff for Long call and short put
Ans. 
Long call and short put have similar payoff structures.
• Both strategies have unlimited profit potential and limited loss potential.

• Long call profits when the underlying asset price rises above the strike price.

• Short put profits when the underlying asset price stays above the strike price.

• Both strategies have a breakeven point at the strike price plus the premium paid/received.

• Long call and short put can be used separate
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Q2. Interest rate risk for Zero coupon bond vs coupon bond
Ans. 
Zero coupon bonds have higher interest rate risk than coupon bonds.
• Zero coupon bonds have no coupon payments, so their prices are more sensitive to changes in interest rates.

• Coupon bonds have regular coupon payments, which can offset some of the price changes due to interest rate fluctuations.

• As interest rates rise, the price of zero coupon bonds falls more than the price of coupon bonds.

• As interest rates fall, the pri...read more
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Q1. Valuation of credit default swap
Ans. 
Valuation of credit default swap
• Valuation of credit default swap involves estimating the probability of default and the expected loss in case of default

• The valuation also takes into account the credit spread and the recovery rate

• Various models such as structural models, reduced-form models, and Monte Carlo simulations are used for valuation

• Market data such as credit spreads, interest rates, and volatility are also used
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Q2. Value at risk methods and uses
Ans. 
Value at risk (VaR) is a statistical measure used to quantify the level of financial risk within a portfolio.
• VaR estimates the maximum potential loss that an investment portfolio may suffer within a given time frame and confidence level.

• It is used by financial institutions to manage risk and set capital requirements.

• VaR can be calculated using various methods such as historical simulation, Monte Carlo simulation, and p...read more
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Assume you are consultant to an asset owner client. How will you consult the client for valuing the portfolio and risk.

Simple java questions, one coding question and one design question

Q1. What is visitor pattern?
Ans. 
Visitor pattern is a design pattern where a visitor class is used to perform operations on elements of a data structure.
• Visitor pattern allows adding new operations to existing classes without modifying them

• It separates the algorithm from the object structure on which it operates

• Commonly used in compilers, interpreters, and other complex systems
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Q2. You have a 2d array {{1,2},{1,3},{5,6}}. Calculate the sum of elements of 1st position in every array with Java 8.
Ans. 
Calculate sum of elements at 1st position in each array using Java 8.
• Use Java 8 stream to map each array to its 1st element and then sum them up.

• Example: {{1,2},{1,3},{5,6}} -> 1 + 1 + 5 = 7
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Q3. Design Thread collector class
Ans. 
Thread collector class to manage and organize threads in a system
• Create a ThreadCollector class with methods to add, remove, and retrieve threads

• Implement a data structure like a list or queue to store the threads

• Ensure thread safety by using synchronization mechanisms like locks or semaphores
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Q4. What is volatile?
Ans. 
Volatile refers to a type of memory storage that is temporary and can change frequently.
• Volatile memory loses its data when power is turned off, unlike non-volatile memory.

• Volatile memory is commonly used for temporary storage of data that needs to be quickly accessed and modified.

• Examples of volatile memory include RAM (Random Access Memory) in computers and cache memory in processors.
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Q5. Sql query to remove duplicates
Ans. 
Use the DISTINCT keyword in a SELECT statement to remove duplicates from a table.
• Use the SELECT DISTINCT statement to retrieve unique rows from a table.

• For example: SELECT DISTINCT column_name FROM table_name;

• Another way is to use the GROUP BY clause with the COUNT() function to remove duplicates.

• For example: SELECT column_name, COUNT(*) FROM table_name GROUP BY column_name;
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Q1. Why do you think you are fit for this role?
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Q2. Why are you leaving your current company?
Ans. 
Seeking new challenges and opportunities for growth.
• Desire for new challenges and opportunities

• Looking for career advancement

• Seeking a more innovative and dynamic work environment
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Q1. Describe your projects
Ans. 
I have worked on various projects involving data analysis, market research, and process improvement.
• Conducted market research to identify new opportunities for product development

• Utilized data analysis techniques to optimize business processes

• Implemented process improvement strategies to increase efficiency and reduce costs
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Q2. All about resume
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Q1. What is normalisation
Ans. 
Normalization is the process of organizing data in a database to reduce redundancy and improve data integrity.
• Normalization involves breaking down data into smaller, more manageable tables

• It helps in reducing data redundancy by storing data in a structured manner

• Normalization ensures data integrity by minimizing anomalies such as update, insert, and delete anomalies
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Q2. How is data stored in power BI
Ans. 
Data in Power BI is stored in a compressed columnar format called VertiPaq.
• Data in Power BI is stored in a compressed columnar format called VertiPaq.

• VertiPaq stores data in memory, allowing for fast query performance.

• Power BI also supports DirectQuery mode where data is queried directly from the data source.

• Data can be imported into Power BI or connected live to the data source.
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Q1. How did you write BRDs
Ans. 
I wrote BRDs by gathering requirements from stakeholders, documenting them clearly, and ensuring alignment with project goals.
• Conducting interviews with stakeholders to gather requirements

• Documenting requirements in a clear and structured manner

• Ensuring alignment of requirements with project goals

• Reviewing and revising BRDs based on feedback
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Q2. What is the motivating and demotivating factor when joining a new organization
Ans. 
Motivating factors include growth opportunities and positive work culture, while demotivating factors include lack of recognition and poor management.
• Motivating factors: opportunities for growth and advancement, positive work culture, competitive salary and benefits

• Demotivating factors: lack of recognition for hard work, poor management and leadership, toxic work environment

• Examples: A motivating factor could be a clea...read more
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2 coding questions and 1 sql query question

Q1. LRU cache memory implementation using linked list
Ans. 
LRU cache memory can be implemented using a linked list to store and manage recently used items efficiently.
• Use a doubly linked list to keep track of the order of items based on their usage.

• When an item is accessed, move it to the front of the list to indicate it is the most recently used.

• If the cache is full, remove the least recently used item from the end of the list.

• Maintain a hashmap for quick access to items in t
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Q2. Sliding window coding question
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Q1. Questions on projects
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