Preview Questions Investment Banker | Role Specific Skill

Question 1: In risk management, which of the following methods is best for evaluating the potential losses in a portfolio?

Which action should you take?

Choose only one option

Expected shortfall (ES)

Value at Risk (VaR)

Scenario analysis

Stress testing

Question 2: When creating a financial model, what is typically used as the base case for revenue projections?

Which action should you take?

Choose only one option

Macro-economic assumptions

Management's budget or forecasts

Historical data for sales growth

Industry trends and market research

Question 3: What is the first step in conducting market research for a new financial product launch?

Which action should you take?

Choose only one option

Estimating the total addressable market size

Defining the target market and understanding customer needs

Evaluating existing competitors and their product offerings

Conducting internal product feasibility analysis

Question 4: How does the concept of "market efficiency" affect forecasting stock prices?

Which action should you take?

Choose only one option

It suggests that future price movements can be easily predicted

It assumes that stock prices are predictable with the right model

It implies that stock prices always reflect all available information

It indicates that stock prices follow a random walk

Question 5: Which economic indicator is most closely tied to predicting credit market conditions in the BFSI industry?

Which action should you take?

Choose only one option

Consumer confidence index

Retail sales figures

Unemployment rate

The yield curve

Question 6: How does the deal premium in an M&A transaction relate to the target company's market price?

Which action should you take?

Choose only one option

It reflects the expected post-merger synergies

It is determined by the acquirer's current stock performance

It is determined solely by the target's market share

It represents the additional value paid above the market price