10+ Intermediate Representative Interview Questions and Answers

Various methodologies are used to calculate returns, including time-weighted, money-weighted, and geometric.

• Time-weighted returns measure the performance of a portfolio over a specific period of time, regardless of cash inflows or outflows.

• Money-weighted returns take into account the timing and amount of cash flows into and out of a portfolio.

• Geometric returns calculate the compounded rate of return over a period of time.

• Other methodologies include simple returns, logarithmic...read more

NAV stands for Net Asset Value. It is the value of a mutual fund's assets minus its liabilities.

• NAV is calculated by dividing the total value of a fund's assets by the number of outstanding shares.

• The formula for NAV is: NAV = (Total Assets - Total Liabilities) / Number of Outstanding Shares

• NAV is calculated at the end of each trading day.

• NAV is used to determine the price at which investors can buy or sell shares in a mutual fund.

Fund accounting work flow involves NAV calculation, journal ledger entries, effects entries, and expenses accruals.

• Fund accounting work flow is the process of managing and recording financial transactions for investment funds.

• NAV calculation is the process of determining the net asset value of a fund, which represents the value of each share or unit.

• NAV impacts refer to the changes in the net asset value due to various factors such as market fluctuations, investments, and exp...read more

Corporate action refers to any event initiated by a publicly traded company that affects the securities issued by the company.

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

• Asset transfer refers to the movement of securities or other assets from one account to another.

• Asset transfers can occur due to a variety of reasons, such as a change in ownership or a change in custodian.

• Corporate actions and asset transfers can have tax im...read more

Forwards and futures are both contracts to buy or sell an asset at a future date, but differ in their details.

• Forwards are customizable and traded over-the-counter, while futures are standardized and traded on exchanges.

• Forwards have credit risk, while futures have margin requirements.

• Forwards have no daily settlement, while futures do.

• Examples of forwards include currency forwards and commodity forwards, while examples of futures include stock index futures and Treasury bond...read more

Attribution is the process of identifying the source or cause of something.

• It involves determining who or what is responsible for a particular event or outcome.

• In marketing, attribution refers to identifying which marketing channels or campaigns led to a conversion or sale.

• In journalism, attribution involves giving credit to sources of information used in a news story.

• Attribution theory is a psychological framework for understanding how people assign causes to events.

• Proper a...read more

Swift is a messaging network used for secure and efficient financial transactions. A custodian is a financial institution that holds and safeguards assets for clients.

• Swift is a messaging network used by banks and financial institutions to securely and quickly send information and instructions for financial transactions.

• Custodian refers to a financial institution or entity that holds and safeguards assets on behalf of clients, ensuring their security and proper management.

• Exa...read more

Shares and bonds are types of investments. Shares represent ownership in a company, while bonds are debt securities issued by governments or corporations.

• Shares represent ownership in a company, giving the shareholder voting rights and potential dividends.

• Bonds are debt securities issued by governments or corporations, where the issuer promises to repay the bondholder the principal amount plus interest at a specified date.

• Shares are considered riskier but offer higher potenti...read more

Mutual funds are investment vehicles that pool money from multiple investors to purchase securities.

• There are several types of mutual funds, including equity funds, bond funds, money market funds, and balanced funds.

• Equity funds invest in stocks, while bond funds invest in fixed-income securities.

• Money market funds invest in short-term, low-risk securities, and balanced funds invest in a mix of stocks and bonds.

• Mutual funds can also be categorized by their investment style, s...read more

The trade life cycle refers to the stages involved in a trade from initiation to settlement.

• Initiation: Trade is proposed and agreed upon by parties involved.

• Execution: Trade is executed on the agreed terms.

• Confirmation: Parties confirm the details of the trade.

• Clearing: Trade details are sent to clearing house for validation.

• Settlement: Actual exchange of funds and securities takes place.

• Post-trade processing: Reconciliation and reporting of the trade.

• Risk management: Monito...read more

Percentage of 21 is calculated by multiplying 21 by the percentage value and dividing by 100.

• To find 10% of 21, multiply 21 by 0.10 (or 10/100) which equals 2.1

• To find 50% of 21, multiply 21 by 0.50 (or 50/100) which equals 10.5

• To find 75% of 21, multiply 21 by 0.75 (or 75/100) which equals 15.75