00:00so you think your cfa will get you into jp morgan today we are running a mock interview for a
00:07cfa
00:07candidate applying to jp morgan whether you are preparing for a real interview or just curious
00:13about how investment banks test cfas this is gonna be intense insightful and maybe a little brutal
00:21and at the end i reveal the one mistake that kills most cfa interviews stick around for that
00:27all right let's see if our candidate can survive the heat welcome so tell me why you want to work
00:35at
00:35jp morgan well i have always admired jp morgan's leadership in global investment banking and i
00:45believe my cfa background along with my experience in financial modeling and risk assessment makes me
00:51a great fit for the team standard answer let's see if you actually have what it takes question one
01:01you are advising a client with a 500 million dollar portfolio how would you hedge against rising interest
01:08rates the correct answer a solid cfa should mention interest rate swaps short duration bonds and treasury
01:20inflation protected securities tips question two explain the difference between free cash flow to
01:27firm fcff and free cash flow to equity fcfe free cash flow free cash flow equity and free cash flow
01:38trick question many candidates confuse these fcff represents cash available to all capital providers
01:46while fcfe is what's left for equity holders after debt payments a cfa should master this question three
01:54a stock is trading at a pe ratio of 35 is that expensive um well it depends good answer now
02:03tell me
02:04depends on what pe alone is useless you need to compare it to industry benchmark historical trends growth
02:11expectations and peg ratio question four what happens to bond prices if the fed hikes ratio by 50 basis points
02:22bond prices fall yes but let's get more precise higher rates make existing bonds less attractive
02:30pushing prices down but the impact depends on duration longer term bond drops more okay let's switch gears
02:38how do you handle stress and long hours this is where many cfa candidates struggle jp morgan wants
02:48people who can handle high pressure long hours and tight deadlines show them you are built for the grind
02:54if you have to choose between investing in a high growth tech company with no earnings and a stable dividend
03:01paying company which would you pick depends on the client's risk profile great now how would you
03:08determine the valuation of a tech company this is where you talk about dcf models forward pe revenue
03:16multiplies and competitive positioning jp morgan doesn't want guesswork they want data-backed decisions
03:23let's talk about what's a top tire jp morgan candidate must master top five cfa interviews must knows
03:30number one technical knowledge valuation portfolio management risk and derivatives number two
03:38market awareness fed policy bond yields and microeconomic factors number three analytical thinking
03:46jp morgan doesn't just want formulas they want insights number four behavioral fit can you handle
03:55stress teamwork and leadership number five the x factor can you think like a banker and not just a cfa
04:03looking to learn a job at the big four check out the link in the description and start your journey
04:08today if you like this video like and subscribe for more career tips want to see another mock interview
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