Accenture Interview Questions and Answers

Mutual fund distributor, PE ratio, PB ratio, and types of risk are important factors to consider in investment decisions.

• Mutual fund distributors help investors access a diversified portfolio of securities managed by professionals.

• PE ratio (Price-to-Earnings ratio) is a valuation metric that compares a company's current share price to its earnings per share.

• PB ratio (Price-to-Book ratio) compares a company's market value to its book value.

• Different types of risks in investmen...read more

To convert physical shares to demat account, the client needs to open a demat account with a depository participant and submit the physical shares for dematerialization.

• Client needs to open a demat account with a depository participant.

• Fill out demat account opening form and provide necessary documents like PAN card, address proof, etc.

• Submit physical share certificates along with a dematerialization request form to the depository participant.

• Depository participant will verif...read more

Market risk, credit risk, liquidity risk, interest rate risk, and inflation risk are types of risks in mutual funds.

• Market risk: Fluctuations in the market can affect the value of the mutual fund.

• Credit risk: Risk of default by the issuer of the securities held by the mutual fund.

• Liquidity risk: Difficulty in selling assets quickly without significant loss.

• Interest rate risk: Changes in interest rates can impact the value of fixed-income securities in the fund.

• Inflation risk:...read more

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

• Mutual funds are managed by professional portfolio managers

• Investors can buy shares of mutual funds to own a portion of the fund's holdings

• Types of mutual funds include equity funds, bond funds, money market funds, and balanced funds

PE ratio is a measure of a stock's valuation, calculated by dividing the stock price by the earnings per share.

• PE ratio = Stock Price / Earnings per Share

• It indicates how much investors are willing to pay for each dollar of earnings

• A high PE ratio may indicate that a stock is overvalued, while a low PE ratio may indicate undervaluation

• For example, if a stock is trading at $50 per share and has earnings per share of $5, the PE ratio would be 10

Price-to-Book ratio (PB ratio) compares a company's market value to its book value.

• PB ratio is calculated by dividing the market price per share by the book value per share.

• A low PB ratio may indicate that a stock is undervalued, while a high PB ratio may suggest overvaluation.

• Investors use PB ratio to assess the value of a company's stock relative to its assets.

• For example, if a company has a PB ratio of 0.5, it means the stock is trading at half of its book value.