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"When applying for position in risk management, you will be interviewed about your analytical skills, finance and accounting knowledge, attention to detail, and knowledge of enterprise accounting software, among other things. The position will require you to point out and avoid potential exposure to financial loss to your company and help your organization correct harmful business practices, so you can expect to be vetted thoroughly by your employer during the interview process."

2,160 risk management interview questions shared by candidates

1) Transform the time series for the ten names into weekly data and calculate the weekly return for each name. 2) Calculate the annualized volatility of returns for each name, based on the weekly returns. 3) Generate a 10x10 correlation matrix using the weekly returns (preferably by writing one formula and filling it to the 10x10 grid, instead of amending all formulas for each calculation). 4) Form a portfolio using the single stocks and calculate the return of the portfolio for each week. Use an equal weighting for each single stock and assume the portfolio is rebalanced weekly. 5) Using the equally-weighted portfolio above, find the hedge ratio between the portfolio and the S&P 500 Index which minimizes the weekly volatility of the hedged portfolio . 6) Using the equally-weighted portfolio again, find the optimal hedge ratios for the portfolio assuming you can use any combination of the S&P 500 and the Russell 2000.
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Risk Management

Interviewed at HBK Capital Management

4.2★
Mar 4, 2017

1) Transform the time series for the ten names into weekly data and calculate the weekly return for each name. 2) Calculate the annualized volatility of returns for each name, based on the weekly returns. 3) Generate a 10x10 correlation matrix using the weekly returns (preferably by writing one formula and filling it to the 10x10 grid, instead of amending all formulas for each calculation). 4) Form a portfolio using the single stocks and calculate the return of the portfolio for each week. Use an equal weighting for each single stock and assume the portfolio is rebalanced weekly. 5) Using the equally-weighted portfolio above, find the hedge ratio between the portfolio and the S&P 500 Index which minimizes the weekly volatility of the hedged portfolio . 6) Using the equally-weighted portfolio again, find the optimal hedge ratios for the portfolio assuming you can use any combination of the S&P 500 and the Russell 2000.

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