15 questions reported in T. Rowe Price interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
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Business quality, position sizing, benchmark risk and turnover discipline. 8 questions
A first-round question for analyst programmes at long-only equity managers.
Before buying a single stock for an active equity fund, what do you need to know about its benchmark, objective and constraints? Why is a benchmark not simply a scorecard?
A first-round calculation that tests whether a candidate can describe a portfolio decision relative to its benchmark.
A global equity fund owns 6% in Company X, 1% in Company Y and 0% in Company Z. Its benchmark weights are 3%, 4% and 2%, respectively. Calculate the active weight in each name and explain what an…
Common at benchmark-aware long-only managers assessing whether candidates understand active risk.
Define active share and tracking error. A fund has 85% active share but only 2% expected tracking error. Is that contradictory, and what would you examine before deciding whether the manager is…
Guaranteed in every asset management, equity research and long/short interview.
Pitch me a stock. Structure your answer as you would in an interview, covering thesis, valuation, catalysts and risks.
Tests whether an equity analyst can turn a headline beat into a tradable, falsifiable view.
A company beats quarterly EPS by 6%, but management keeps full-year guidance unchanged. The share price rises 9% on the day. How would you decide whether to add to a position, hold it, or sell into…
A practical portfolio-management question about converting research into net client returns.
An analyst proposes selling a 4% holding to buy a new idea expected to outperform by 5% over the next year. The round-trip trading cost is 70 basis points, and selling would realise a 20% taxable gain…
A long-only portfolio-management judgement question about letting winners run without allowing a position to become an unmanaged risk.
A stock you bought at a 3% portfolio weight has doubled and is now an 8% weight. The thesis remains intact, but the valuation is above your base-case fair value. How would you decide whether to trim,…
An evidence-weighting exercise that makes confidence explicit before the recommendation.
You are reviewing a consumer compounder after a profit warning. Allocate 100 confidence points across bullish, bearish and unresolved explanations as evidence arrives, then make a position…
Conviction, downside cases and knowing when the work says no. 4 questions
A first-round buy-side question testing whether you distinguish company quality from an investment opportunity.
A candidate says, "I would buy Company A because it has great products, loyal customers and a strong management team." What is missing from that answer?
A junior research exercise testing whether you can reconcile a headline growth rate before accepting management's narrative.
A consumer company reports revenue rising from $500m to $550m, or 10%. Management says acquisitions added 6 percentage points and foreign exchange added 2 percentage points. What was organic growth,…
A buy-side final-round case testing whether you can revise a recommendation when primary research conflicts with management guidance.
You own a 4% long position in a software company at $80. Your base case is worth $105 (60% probability), your bear case is $55 (25%), and your bull case is $125 (15%). Two of five channel-check…
A buy-side analyst simulation testing whether you can update a view before the morning investment meeting.
You cover a long position in a vertical-software company. An alternative-data alert challenges the core thesis two hours before the portfolio-manager meeting. Work through the evidence and write the…
Duration and curve positioning, spread decisions and index construction. 2 questions
Tests whether you can match a straightforward client objective to an implementable fixed-income portfolio.
A client needs predictable annual cash flows for the next five years but worries rates may rise. How would a bond ladder help?
A realistic portfolio-management scenario for an open-ended bond fund facing client redemptions during a risk-off session.
Your investment-grade bond fund receives a $75m redemption request at 10:00am while credit spreads are widening. The portfolio has $20m of Treasury bills, $40m of recently issued liquid industrial…
Driver-based models, differentiated estimates and defending a rating. 1 question
A reasoning question with no single right answer. The interviewer wants your framework.
Two companies in the same industry have identical revenue, EBITDA and growth. One trades at 12x EV/EBITDA, the other at 7x. Give me the possible explanations.
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with T. Rowe Price.