Incedo Interview Questions and Answers

Q1. Definition of IRR, NPV, NAV
Ans. 
IRR, NPV, and NAV are financial metrics used to evaluate the profitability and value of investments.
• IRR (Internal Rate of Return) is the discount rate that makes the net present value of all cash flows from a particular investment equal to zero.

• NPV (Net Present Value) is the difference between the present value of cash inflows and outflows of an investment.

• NAV (Net Asset Value) is the value of a fund's assets minus its...read more
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Q2. Differentiate Mutual Fund, Hedge Fund, Private Equity
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Q3. Accounting Basics
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Q4. Analysis of Financial statements
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Analysis of financial statements involves reviewing and interpreting a company's financial data to assess its performance and make informed decisions.
• Review income statement, balance sheet, and cash flow statement to understand financial health

• Calculate key financial ratios like profitability, liquidity, and solvency ratios

• Compare current financial data with historical data and industry benchmarks

• Identify trends, stren...read more
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Q5. Limited Partner vs General Partner
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Limited partners are passive investors with limited liability, while general partners are actively involved in managing the business with unlimited liability.
• Limited partners have limited liability and are not involved in the day-to-day operations of the business.

• General partners have unlimited liability and are actively involved in managing the business.

• Limited partners typically contribute capital to the business but...read more
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Q1. Previous work experience
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Q2. Why this company?
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Q3. How do you fit into the role?
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Q4. Situational based questions
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Q1. What's Beta, do you know what it is used for?
Ans. 
Beta measures a stock's volatility relative to the market, indicating risk and expected return.
• Beta > 1 indicates higher volatility than the market (e.g., tech stocks).

• Beta < 1 indicates lower volatility (e.g., utility stocks).

• A beta of 1 means the stock moves with the market.

• Investors use beta to assess risk and make investment decisions.
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Q2. How many million in 1 Billion.
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One billion is equal to one thousand million, as 1 billion = 1,000 million.
• 1 billion = 1,000 million.

• In numerical terms: 1,000,000,000 = 1,000 x 1,000,000.

• This is often used in finance and economics to express large sums.
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Q3. What's Private Equity?
Ans. 
Private equity involves investing in private companies or buying out public companies to restructure and improve their value.
• Private equity firms raise funds from investors to acquire companies.

• Investments are typically long-term, aiming for 5-10 years before exit.

• Common exit strategies include selling to another firm or going public (IPO).

• Examples include firms like Blackstone and KKR, which manage billions in assets.

• ...read more
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Q4. What's Venture Capital?
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Venture capital is funding provided to startups and small businesses with high growth potential in exchange for equity.
• Venture capitalists invest in early-stage companies, often in technology or biotech sectors.

• They provide not just funding but also mentorship and industry connections.

• Famous examples include Sequoia Capital, which invested in Google and Apple.

• Investments are typically high-risk but can yield high retur...read more
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Q5. What's Hedge Fund?
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Q6. Difference between Private Equity & Hedge Fund.
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Q7. What's LP & GP?
Ans. 
LP (Limited Partner) and GP (General Partner) are key roles in private equity and venture capital firms, defining investment responsibilities.
• LPs provide capital but have limited control over investments; they are often institutional investors or high-net-worth individuals.

• GPs manage the investment fund, making decisions on asset allocation, and are responsible for the fund's performance.

• Example: In a venture capital f...read more
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Q8. What is MOIC (Multiple of Invested Capital)?
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MOIC measures the total value returned from an investment relative to the capital invested.
• MOIC = Total Value Returned / Total Invested Capital.

• A MOIC of 2.0 means for every $1 invested, $2 is returned.

• If you invest $1 million and receive $3 million back, MOIC = 3.0.

• Used to assess the performance of private equity and venture capital investments.
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Q9. What's IRR? and how is it different from CAGR?
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Q10. What's KPI & how did your previous company measure these KPI?
Ans. 
KPI stands for Key Performance Indicator, a measurable value that demonstrates how effectively a company is achieving key business objectives.
• KPIs are specific metrics used to evaluate success in reaching targets.

• Examples include sales growth, customer satisfaction scores, and employee turnover rates.

• My previous company measured KPIs through regular performance reviews and dashboards.

• We used tools like Google Analytics...read more
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Q11. What's Waterfall and it's Calculation.
Ans. 
Waterfall is a project management methodology emphasizing sequential phases and clear deliverables.
• Waterfall model consists of distinct phases: Requirements, Design, Implementation, Verification, Maintenance.

• Each phase must be completed before moving to the next, ensuring structured progress.

• Example: In software development, requirements are gathered first, then design is created, followed by coding.

• Waterfall is best f...read more
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Q12. What type of work I did in previous company for Private equity?
Ans. 
In my previous role, I conducted financial analysis and due diligence for private equity investments, supporting deal execution.
• Performed financial modeling to assess potential investment opportunities, including DCF and LBO analyses.

• Conducted thorough due diligence on target companies, analyzing financial statements and operational metrics.

• Collaborated with cross-functional teams to prepare investment memos and presen...read more
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Q13. What's Corporate Action?
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Corporate actions are events initiated by a company that affect its securities, impacting shareholders' rights and financial position.
• Types of corporate actions include dividends, stock splits, mergers, and rights issues.

• Dividends are payments made to shareholders from a company's profits, e.g., cash or stock dividends.

• A stock split increases the number of shares while reducing the share price, e.g., a 2-for-1 split.

• Me...read more
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Q14. Why corporate decide to split it's stock price?
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Find bug in snippet. Code snippet writing.

Q1. Coding concepts , best practices
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Q1. Design pattern and app design
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Q1. Project management
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Q1. Job profile , Family question
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Some basic testing questions

Q1. Selenium waits, java oops , priority vs severity
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Q2. Write a selenium code by using assertions
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Q1. Write selenium code and execute on screen
Ans. 
Selenium code automates web browser interactions for testing applications.
• Import necessary libraries: 'from selenium import webdriver'

• Initialize the WebDriver: 'driver = webdriver.Chrome()'

• Open a webpage: 'driver.get('http://example.com')'

• Locate elements: 'element = driver.find_element_by_name('q')'

• Perform actions: 'element.send_keys('Selenium')'

• Submit forms: 'element.submit()'

• Close the browser: 'driver.quit()'
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Q2. Write an sql query and get the desired output on screen
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An SQL query retrieves data from a database based on specified criteria.
• Use SELECT to specify columns to retrieve. Example: SELECT name, age FROM users;

• Use WHERE to filter results. Example: SELECT * FROM orders WHERE status = 'shipped';

• Use JOIN to combine rows from two or more tables. Example: SELECT users.name, orders.amount FROM users JOIN orders ON users.id = orders.user_id;

• Use GROUP BY to aggregate data. Example: S...read more
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Q1. Salary expectations
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Q2. Notice period related
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