Hi, I recently came across the "interview exam" that a hedge-fund that goes by the name Bell Rock capital management. Actually, the initial hedge fund was called de Putron fund management, and it's research arm was Gloucester Research. Now, they're called Bell Rock and GResearch. Anyway, here are the questions for the risk management interview exam. You have 90 minutes. The "difficult" questions are marked with a (+). There is a total of 37 points to be had, 22 regular + 15 difficult. In order to pass, you need at least 18 points gathered from the regular questions. Any additional difficult points will be beneficial at later stages. Take care and good luck!
Hahaha... 90% of ET's posts is basically on questions(d*) and (e+). 50% of ET'ers do not believe there are solutions these problems (wrong, of course). And this is only the first question of an actual interview test....haha If there's ever a place for EMG to chime in on small traders, it's here. (And Jack Hershey will inevitably arrive to sh*t all over the place, but he can't answer any of these questions in less than 100 sentences - except 1 and 2 - .... maybe....).
Here is a brief answer to the 5 point question. There was a failure of the test designers where they confused, mathematically, repetition with trending as a means to make money through price change. I give them partial credit for using Boolean Algebra in the test, but they did not ask how boolean algebra works in trends. In simplest terms, Boolean algebra is used to define th ooperation of either and consequently, both in consert, the two key market variables. One pattern emerges and it is defined interms of its beginning, ending and vector direction. I would sketch this (google: The Pattern") out simply. For scoring purposes, I would credit myself with three scores each over 6 points. I get more than 6 points, rspectively for these three considerations: 1. choosing the correct mathematics of trend analysis, 2. making use of the three variables of the market. 3. determining the single prttern of the markets. If anyone wishes, you can send my answer to the HR committee of GR. I'm sure they would reject it as most of the ET members do. If they could get the wkeup call, then you would get a finder's fee.