Investment Banking Interview Questions and Answers

Going second is the optimal strategy in this game.

• Going second allows you to mirror your opponent's moves and ensure that you place the last coin.

• If you go first, your opponent can simply copy your moves and place the last coin.

• This game is similar to the game of Nim, where going second is also the optimal strategy.

The probability of getting 5 heads in 5 tosses of an unbiased coin is 1/32.

• The probability of getting a head on a single toss of an unbiased coin is 1/2.

• The probability of getting 5 heads in a row is (1/2)^5 = 1/32.

• Each toss is independent of the previous toss, so the probability of getting 5 heads in a row is the same as getting any other sequence of 5 tosses.

Net income can increase or decrease depending on various factors such as revenue, expenses, taxes, and investments.

• Net income can increase if revenue increases or expenses decrease

• Net income can decrease if revenue decreases or expenses increase

• Taxes can also affect net income

• Investments can also impact net income

• Net income is calculated by subtracting expenses from revenue

• Net income is an important metric for evaluating a company's financial performance

Investments that perform well under inflationary environment

• Real estate investments

• Commodities like gold and silver

• Inflation-protected bonds like TIPS

• Stocks of companies with pricing power

• Alternative investments like infrastructure and private equity

• Avoid cash and fixed-rate bonds

The world's GDP growth rate varies year to year and is influenced by various factors such as global economic conditions, political stability, and technological advancements.

• The world's GDP growth rate was 2.9% in 2019

• The COVID-19 pandemic caused a significant decline in the world's GDP growth rate in 2020

• China has been a major contributor to the world's GDP growth rate in recent years

• The world's GDP growth rate is expected to rebound in 2021 as countries recover from the pand...read more

India's GDP is $2.7 trillion as of 2020.

• India is the world's sixth-largest economy by nominal GDP.

• The country's GDP growth rate has been steadily increasing over the years.

• India's major industries include agriculture, manufacturing, and services.

• The COVID-19 pandemic has had a significant impact on India's economy.

• The government has implemented various measures to boost economic growth.

Payoff diagram of options shows the profit or loss of an option at different prices of the underlying asset.

• The diagram is a graph with the price of the underlying asset on the x-axis and the profit or loss on the y-axis.

• The payoff diagram can be used to analyze the risk and reward of different options strategies.

• Examples of options strategies include long call, short call, long put, short put, and straddle.

• The payoff diagram can also be used to determine the breakeven point ...read more