I am a frequent visitor to this forum even though I have never posted anything till now. I cleared CFA Level 1. I interviewed for an investment research firm They have now given me an assignment to complete. It’s like a litmus test for the job so I have to answer it correctly. There are some new terms which I have come across in this assignment which weren’t there at all in CFA - Maximum Drawdown, Rolling Returns, Months in Maximum Drawdown, Months to Recover.
I don’t want the solution per se; it would be helpful if you can just share your knowledge on how to do the calculations or if you can provide any link where I can look for similar problem cases.
I don’t really understand how the first clause is different from the second. Doesn’t knowledge of the calculations necessarily imply the solutions?
Also, as a heads up, you may want to start contributing to the forum as it would increase the chances that someone will help you in return. In my view, this would be better form than just showing up on this forum and asking people to help you pass your job qualification test.
Thanks a lot Sir. I just meant if someone can help me by sharing some knowledge in this regard or a similar case. I didn’t want anyone to go through the grind of solving a problem for me which actually doesn’t even serves the purpose because then I would just copy the solution. Rather, what I asked for was some knowledge which will help me in solving this case and in turn I would learn a lot. I posted the link to the spreadsheet to make it more clear as to what I am looking for because I haven’t heard of these terms before.
And yes, I agree with you; I should be contributing more to this forum.
“But seriously, just google the terms, they’re simple math… the calulations are basically implied in their names.”
Rightly said. If really serious to ‘pass’ the assignment (test) you should have done it before posting here (and if you don’t know about this you have lot to learn). Obviously, even if you get the cue here and the help to do the assignment, this way you may not be able to prove you deserv the job in the interview! ‘Knowledge sharing’ does not seem to be the only objective of the post. Best wishes for your selection.
Just google the terms! “Maximum Drawdown” isn’t a term you need to consult a forum on to get a definition/calculation. Bite the bullet and do your own assignment. It will give you a better assessment of how ready you truly are for the job.
Did this guy end up getting the job? Or did he drop out of the interview process because he decided that getting to know what a drawdown meant was simply too onerous?
^ must have been too much for him, haha. I find it funny (yet troubling) when people go to the trouble of making an AF account, seeemingly just to ask questions that can easily be found online.
Knowing only this about him, I wouldn’t hire him. People have to be a bit more resourceful, IMO. Not saying that he should know these terms, but learning involves research. And if someone can’t do simple online research how can you expect them to do equity research.
^ Completely agree. I would NEVER hire that guy either. If he can’t research something so rudimentary, he has a snowball’s chance in hell at making a career in research…no offense.