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Asset Management Internship Question

Currently applying for a summer internship pos. at an asset management firm.

Question: If you inherited £100 how would you ensure you received a reasonable return over a one year period?

I know how to answer this question but I want to see your input to see if I am on the right lines


(edited 9 years ago)
Reply 1
Original post by Anonynmous
Question: If you had inherited £100, how will you ensure you get a reasonable rate of return in 1 year

I know what to do (kinda) to answer this question, but I'd like to see your input so i can see if i'm going on the right track.


Are you asking this because you are actually trying to earn a return on your £100? Or is it some kind of question you've been set?
Reply 2
Original post by josh_v
Are you asking this because you are actually trying to earn a return on your £100? Or is it some kind of question you've been set?


It is a question for a summer internship at an asset management firm.
(edited 9 years ago)
Reply 3
Original post by Anonynmous
It is a question for a summer internship at an asset management firm.


What kind of ways do you think?
Original post by Anonynmous

Currently applying for a summer internship pos. at an asset management firm.

Question: If you inherited £100 how would you ensure you received a reasonable return over a one year period?

I know how to answer this question but I want to see your input to see if I am on the right lines





They are looking to see how you balance risk and return. In this circumstance, volatility and liquidity are very relavant. You also have to decide what is "reasonable" and whether you are going to challenge the premise of the question...for example, the current risk-free 1 year rate is about 150bps, is this a "reasonable" return?
Reply 5
Original post by josh_v
What kind of ways do you think?


Original post by webuffett
They are looking to see how you balance risk and return. In this circumstance, volatility and liquidity are very relavant. You also have to decide what is "reasonable" and whether you are going to challenge the premise of the question...for example, the current risk-free 1 year rate is about 150bps, is this a "reasonable" return?


Thanks guys for your input! - I was thinking of this too

i'll send you guys a PM with my answer and tell me what you think

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