Preview Questions Investment Banker | Role Specific Skill

Question 1: In managing client expectations, what is the significance of discussing performance benchmarks during portfolio reviews?

Which action should you take?

Choose only one option

It ensures that the banker is not held responsible for market volatility

It helps to reduce the time spent on explaining investment strategies

It helps clients understand whether their portfolio is meeting their financial goals relative to market conditions

It focuses only on past performance without considering future goals

Question 2: How would you approach industry analysis when researching a new financial instrument in the BFSI sector?

Which action should you take?

Choose only one option

By conducting a SWOT analysis to identify strengths, weaknesses, opportunities, and threats

By focusing on regulatory restrictions and legal challenges that could affect the product's performance

By using qualitative analysis of customer sentiment and market demand through surveys and focus groups

By analyzing historical market data and comparing it with emerging trends and macroeconomic changes

Question 3: When researching emerging financial products, which factor is most important to assess in terms of market demand?

Which action should you take?

Choose only one option

Historical performance of similar products in the market

Regulatory changes and potential barriers to entry

Economic factors such as GDP growth and unemployment rates

The competitive landscape and potential for product differentiation

Question 4: When evaluating a new financial product for market entry, which research method is most suitable for assessing the size of the target market?

Which action should you take?

Choose only one option

Market sizing studies using top-down or bottom-up analysis methods

Competitor analysis to identify potential market share gain

Surveys and customer interviews to gauge interest in the product

Focus group discussions to understand deep market preferences and buying behavior

Question 5: In a debt restructuring deal, what is the main goal of the debt-to-equity conversion?

Which action should you take?

Choose only one option

To increase the credit rating of the company for future borrowings

To reduce the company's debt burden by converting it into ownership equity

To shorten the maturity of the debt obligations

To provide additional collateral to secure the debt

Question 6: What is the key difference between a top-down and a bottom-up approach in market forecasting?

Which action should you take?

Choose only one option

Top-down uses qualitative analysis, bottom-up uses quantitative analysis

Top-down focuses on historical trends, bottom-up focuses on forecasts

Bottom-up starts with macroeconomic data, top-down starts with company data

Top-down starts with macroeconomic data, bottom-up starts with company data