IFB Agro Industries Interview Questions and Answers

VAR stands for Value at Risk, SVAR stands for Structural Vector Autoregression, delta of short put measures sensitivity of option price to changes in underlying asset price, volatility affects market by influencing pricing and risk perception, Risk analysis is important for identifying and managing potential risks.

• VAR is a statistical measure used to quantify the level of financial risk within a firm or portfolio.

• SVAR is a statistical technique used to analyze the impact of s...read more

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

• Beta is calculated by comparing the stock's returns to the returns of a benchmark index, usually the S&P 500.

• A beta of 1 indicates that the stock's price will move in line with the market.

• A beta greater than 1 indicates that the stock is more volatile than the market, while a beta less than 1 indicates that the stock is less volatile than the market.

• Beta is used by investors to assess the risk of a st...read more

Levered beta includes the impact of debt on a company's risk, while unlevered beta does not.

• Levered beta measures a company's risk with debt included in the calculation.

• Unlevered beta measures a company's risk without considering the impact of debt.

• Levered beta is higher than unlevered beta for companies with debt.

• Unlevered beta is useful for comparing the risk of companies with different capital structures.

Bond accounting refers to the process of recording and reporting the financial transactions related to bonds.

• It involves tracking the issuance, interest payments, and maturity of bonds

• It also includes calculating the amortization of bond premiums and discounts

• Bond accounting is important for accurate financial reporting and compliance with accounting standards

• Examples of bond accounting software include Bloomberg Terminal and Thomson Reuters Eikon

Corporate actions are events initiated by a public company that impact its shareholders and securities.

• Corporate actions can include dividends, stock splits, mergers, acquisitions, spin-offs, and rights issues.

• Dividends are payments made to shareholders from a company's profits.

• Stock splits involve dividing existing shares into multiple shares to lower the price per share.

• Mergers and acquisitions involve two companies combining or one company buying another.

• Spin-offs involve ...read more

Regulatory reporting is the process of submitting information to regulatory authorities to ensure compliance with laws and regulations.

• Regulatory reporting involves providing detailed financial and operational information to regulatory bodies.

• It is essential for ensuring transparency, accountability, and compliance with laws and regulations.

• Examples include submitting financial statements to the SEC or reporting on capital adequacy to banking regulators.