Quant Researcher Interview Questions

431 quant researcher interview questions shared by candidates

For the 1:1 interview I got first one medium question: a) painting with true price x between 0 and 1000, you can place a bid offer b anywhere, if you're below nothing happens, if you're above you pay it at b and sell it to a friend for 1.5x, what's your bid? Question two was: You begin with $100. You flip a fair coin. Heads, you get 1$. Tails, your money gets inversed (i.e. first tails, your money is now 1/100). What is the expected value after 10 flips? sol: a) quite interesting, the idea is to split in two events: either you're below and nothing happens, or you're above and you get 1.5x - b, the trick is that when you're in that event, the expected value for x is b/2, so you're expected to get -b/4 which is negative, so you shouldn't place any bet! b) For this one I got these hints: - what happens if you have just 2 coins? - what are your expected end results? - do you think there are more than 10 ways to get end with more than 100? Basically the idea is the compute the first values and observe that they form a Fibonacci sequence pattern, and thus intuite that the final expected value for n=10 is around F(n+1)/(2^n)

Quant researcher

Interviewed at Wincent Capital Management

4.2
Oct 7, 2024

For the 1:1 interview I got first one medium question: a) painting with true price x between 0 and 1000, you can place a bid offer b anywhere, if you're below nothing happens, if you're above you pay it at b and sell it to a friend for 1.5x, what's your bid? Question two was: You begin with $100. You flip a fair coin. Heads, you get 1$. Tails, your money gets inversed (i.e. first tails, your money is now 1/100). What is the expected value after 10 flips? sol: a) quite interesting, the idea is to split in two events: either you're below and nothing happens, or you're above and you get 1.5x - b, the trick is that when you're in that event, the expected value for x is b/2, so you're expected to get -b/4 which is negative, so you shouldn't place any bet! b) For this one I got these hints: - what happens if you have just 2 coins? - what are your expected end results? - do you think there are more than 10 ways to get end with more than 100? Basically the idea is the compute the first values and observe that they form a Fibonacci sequence pattern, and thus intuite that the final expected value for n=10 is around F(n+1)/(2^n)

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