Equity Research Intern Interview Questions and Answers

Stocks with higher correlation with the market tend to have higher volatility and risk.

• Higher volatility and risk

• Tend to move in the same direction as the market

• More sensitive to market fluctuations

• May provide better diversification benefits if negatively correlated with other assets

Proficient in Excel and Microsoft presentation

• Advanced skills in Excel including formulas, pivot tables, and data analysis

• Experience creating professional Microsoft presentations with visual aids and data visualization

• Ability to effectively communicate complex financial data in a clear and concise manner

• Familiarity with creating charts, graphs, and tables to support analysis

• Attention to detail and accuracy in all Excel and presentation work

• Examples: Created financial models i...read more

Yes, technical analysis tools are used to analyze historical price and volume data to predict future price movements in financial markets.

• Technical analysis tools include moving averages, support and resistance levels, and chart patterns.

• These tools help identify trends, reversals, and potential entry/exit points for trades.

• Examples of technical analysis tools are MACD (Moving Average Convergence Divergence), RSI (Relative Strength Index), and Bollinger Bands.

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Derivatives can be used for hedging, speculation, or arbitrage.

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

• Derivatives can be traded on exchanges or over-the-counter (OTC) markets.

• Derivatives can be complex and carry significant risks, including the potential for large losses.

• Derivatives played a role in the 2008 financial crisis.