Wealth Management Intern Interview Questions and Answers

Key ratios to analyze banks include capital adequacy, asset quality, profitability, and liquidity.

• Capital adequacy ratio (CAR) measures a bank's ability to absorb losses

• Asset quality ratio (AQR) assesses the quality of a bank's assets

• Profitability ratios include return on assets (ROA) and return on equity (ROE)

• Liquidity ratios measure a bank's ability to meet short-term obligations

• Examples of liquidity ratios include the current ratio and the quick ratio

Cost of capital is the minimum return a company must earn on its investments to satisfy its investors.

• It is the rate of return that a company must earn on its investments to maintain or increase its share price.

• It is used to evaluate new projects or investments to determine if they will generate enough return to meet the cost of capital.

• It is calculated by taking the weighted average of the cost of debt and the cost of equity.

• The cost of debt is the interest rate a company pa...read more

Yes, I am familiar with the markets and have knowledge of various financial instruments and investment strategies.

• I have studied finance and economics courses that cover market analysis and investment principles.

• I regularly follow financial news and updates to stay informed about market trends.

• I have experience in trading stocks, bonds, and other securities.

• I understand the concept of risk management and diversification in investment portfolios.