Visible Alpha Solutions Research Associate Interview Questions and Answers

Core finance questions along with puzzles and case studies.

Q1. Can beta be negative?
Ans. 
Yes, beta can be negative in finance when the asset moves in the opposite direction of the market.
• Beta measures the volatility of an asset in relation to the market. A negative beta indicates that the asset moves in the opposite direction of the market.

• Assets with negative betas are considered to be defensive investments, as they tend to perform well when the market is declining.

• For example, gold is often considered to...read more
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Financial modeling questions.

Q1. Difference between direct and indirect cost
Ans. 
Direct costs are expenses that can be directly attributed to a specific project or activity, while indirect costs are expenses that cannot be directly attributed to a specific project or activity.
• Direct costs are typically variable costs, such as labor and materials, that increase or decrease with the level of activity.

• Indirect costs are typically fixed costs, such as rent and utilities, that do not vary with the level...read more
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Q2. Cashflow,relative valuation
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Quants, logical, verbal questions with questions on financial concepts such as capital budgeting methods, their calculations,etc

Q1. What is meant by FCFF?
Ans. 
FCFF stands for Free Cash Flow to Firm. It is the cash flow available to all investors in a company.
• FCFF is a measure of a company's financial performance.

• It is calculated by subtracting capital expenditures and working capital investments from operating cash flow.

• FCFF is used to determine the amount of cash a company can generate after accounting for its capital expenditures.

• It is important for investors as it helps t...read more
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Q2. Company analysis, business model of any company you have researched about, PVR revenue model, some ratios, what to check before investing, P/E ratio, etc
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Q1. Ratios, questions based on the answers i had selected in the test, why i chose a particular answer, explain logic and reason behind your answer, present calculations for the same, impact of items on financ...read more
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