Financial Management Interview Questions and Answers

Financial Management Questions and Answers:

1 :: What is alpha of stocks?

The meaning is not very different in the world of investing.
Most people who invest in stocks do so because they want a
return--this is the purpose of investing.
Alpha is the term given to the extra return.

Alpha measures the risk-adjusted return for a given asset.
Knowing the value of an asset that is driven by market
forces means nothing without gauging the risk associated
with owning the asset over a given time period. The best
investment is a stock or asset with a high return and
limited risk.
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2 :: Explain MECHANISM OF ADR?

An American depositary receipt (ADR) is a negotiable security that represents the underlying securities of a non-U.S. company that trades in the US financial markets. Individual shares of the securities of the foreign company represented by an ADR are called American depositary shares (ADSs).
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3 :: What is equity?

equity owner of the share holder
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5 :: Explain How many types of account?

various types of accounts are....
1) demand deposits or current accounts
2) savings accounts
3) recurring deposits account
4) fixed deposits account
5) dormant accounts
6) joint accounts
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