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The Sharpe Ratio measures risk-adjusted return, indicating how much excess return is earned for each unit of risk taken.
Formula: Sharpe Ratio = (Return of Portfolio - Risk-Free Rate) / Standard Deviation of Portfolio Returns.
A higher Sharpe Ratio indicates better risk-adjusted performance; for example, a ratio of 1.5 is generally considered good.
If two portfolios have the same return, the one with the lower standa...
Time-weighted IRR measures investment performance without cash flow impact, while money-weighted IRR accounts for cash flow timing.
Time-Weighted IRR (TWRR): Measures the compound growth rate of an investment portfolio, eliminating the effects of cash inflows and outflows.
Money-Weighted IRR (MWRR): Reflects the actual performance of an investment by considering the timing and size of cash flows.
Example of TWRR: If ...
Analyzing portfolio performance involves assessing returns, risk, and alignment with investment goals using various metrics.
Return on Investment (ROI): Calculate the percentage return on the portfolio to evaluate overall performance. For example, if a portfolio grew from $100,000 to $120,000, the ROI is 20%.
Benchmark Comparison: Compare the portfolio's performance against a relevant benchmark index, such as the S&...
Risk and returns can be measured using various financial metrics and ratios.
Calculate the standard deviation of returns to measure risk
Use beta to measure the volatility of an investment compared to the overall market
Calculate the Sharpe ratio to assess the risk-adjusted return of an investment
Consider the historical performance of an investment to gauge potential future returns
Yield curve is a graphical representation of interest rates on debt for a range of maturities.
Yield curve shows the relationship between bond yields and their maturity dates.
It typically slopes upwards, indicating higher yields for longer-term bonds.
An inverted yield curve, where short-term yields are higher than long-term yields, is often seen as a sign of an impending recession.
Alpha and beta are measures of investment performance. Alpha measures the excess return of an investment compared to a benchmark, while beta measures the volatility of the investment relative to the market.
Alpha is a measure of the excess return of an investment compared to a benchmark.
Beta is a measure of the volatility of an investment relative to the market.
Alpha indicates how much value an investment manager a...
Performance of a fund is measured by analyzing its returns compared to a benchmark, risk-adjusted returns, volatility, and consistency.
Compare fund returns to a relevant benchmark index
Analyze risk-adjusted returns using metrics like Sharpe ratio or alpha
Assess volatility through standard deviation of returns
Evaluate consistency of performance over time
Designed a microservices architecture using Docker and Kubernetes for a scalable web application
Utilized Docker containers to encapsulate each microservice
Implemented Kubernetes for container orchestration and scaling
Used service discovery and load balancing for high availability
Separated concerns by breaking down the application into smaller services
Attribution analysis is a method used to evaluate the performance of investment portfolios by attributing returns to different factors or sources.
Attribution analysis helps identify the drivers of portfolio performance.
It breaks down returns into components such as asset allocation, stock selection, and market timing.
By analyzing attribution, investors can assess the impact of their investment decisions.
For exampl...
PTP cycle stands for Procure-to-Pay cycle, which is the process of obtaining and paying for goods and services.
PTP cycle involves requisitioning, purchasing, receiving, and paying for goods and services.
It starts with the need for a product or service, followed by creating a purchase order, receiving the goods, and finally processing the payment.
Efficient PTP cycle helps in managing costs, controlling spend, and e...
I appeared for an interview before Jun 2024, where I was asked the following questions.
The Sharpe Ratio measures risk-adjusted return, indicating how much excess return is earned for each unit of risk taken.
Formula: Sharpe Ratio = (Return of Portfolio - Risk-Free Rate) / Standard Deviation of Portfolio Returns.
A higher Sharpe Ratio indicates better risk-adjusted performance; for example, a ratio of 1.5 is generally considered good.
If two portfolios have the same return, the one with the lower standard de...
I applied via Company Website and was interviewed in Jul 2024. There was 1 interview round.
Risk and returns can be measured using various financial metrics and ratios.
Calculate the standard deviation of returns to measure risk
Use beta to measure the volatility of an investment compared to the overall market
Calculate the Sharpe ratio to assess the risk-adjusted return of an investment
Consider the historical performance of an investment to gauge potential future returns
I have a strong analytical background, excellent problem-solving skills, and a proven track record of delivering actionable insights.
I have a degree in statistics and experience in data analysis
I have successfully identified cost-saving opportunities for my previous employer
I am proficient in using various analytical tools such as Excel, SQL, and Python
Looking for new challenges and growth opportunities
Seeking new challenges to enhance skills and knowledge
Interested in exploring different industries or sectors
Desire for career advancement and professional development
Want to work in a more collaborative or innovative environment
Fixed income valuation methods involve assessing the present value of future cash flows from fixed income securities.
Fixed income valuation methods include discounted cash flow analysis, yield to maturity, and duration analysis.
Discounted cash flow analysis calculates the present value of all future cash flows by discounting them back to the present using a discount rate.
Yield to maturity is the total return anticipate...
It was good, detailed discussion
It ws good, detailed feedback session
I have over 5 years of experience as a Business Analyst, with expertise in data analysis, requirements gathering, and process improvement.
Strong analytical skills to interpret complex data and make strategic recommendations
Experience in conducting stakeholder interviews to gather requirements
Proficient in creating detailed documentation such as business requirements documents and process flows
Skilled in identifying are...
Aptitude test conducted at the first round
General logical based question English, reasoning and math
To find 50% of 75, simply calculate half of the number, which equals 37.5.
50% means half of a number.
To calculate 50% of 75: 75 / 2 = 37.5.
This concept applies to any number, e.g., 50% of 100 is 50.
I appeared for an interview in Dec 2024, where I was asked the following questions.
I have extensive experience with Excel, including data analysis, visualization, and advanced functions.
Proficient in using formulas like VLOOKUP, HLOOKUP, and INDEX-MATCH for data retrieval.
Skilled in creating pivot tables to summarize and analyze large datasets.
Experienced in using conditional formatting to highlight key data points.
Familiar with data visualization tools like charts and graphs to present findings effe...
Faced a data discrepancy issue in a project, resolved it through thorough analysis and collaboration with the team.
Identified a significant data discrepancy in sales reports during a quarterly review.
Conducted a root cause analysis to trace the source of the error, which involved checking data entry processes.
Collaborated with the IT department to implement a more robust data validation system.
Presented findings and so...
I have a strong understanding of Python, including its libraries, data structures, and applications in data analysis.
Proficient in using libraries like Pandas for data manipulation and analysis.
Experienced with NumPy for numerical computations and handling arrays.
Familiar with data visualization libraries such as Matplotlib and Seaborn.
Knowledgeable in writing efficient algorithms and using data structures like lists, ...
I possess strong leadership, problem-solving, and communication skills, which help me effectively manage teams and projects.
Leadership: Successfully led a team of 10 in a project that increased efficiency by 20%.
Problem-solving: Developed a new workflow that reduced project turnaround time by 15%.
Communication: Regularly conduct team meetings to ensure everyone is aligned and informed.
Time-Weighted Rate of Return (TWRR) vs Money-Weighted Rate of Return (MWRR) vs Yield to Maturity (YTM) are different performance metrics used in finance.
TWRR measures the compound rate of growth in a portfolio, unaffected by cash flows.
MWRR takes into account the timing and amount of cash flows in and out of the portfolio.
YTM is the total return anticipated on a bond if the bond is held until it matures.
TWRR is more su...
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The duration of Mercer interview process can vary, but typically it takes about less than 2 weeks to complete.
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