GUEST COMMENT: Four genres of question you should always anticipate in an investment banking interview

From long experience of being both an interviewee and an interviewer at investment banks, I've come to the conclusion that there are four fundamental genres of questions that interviewers use to differentiate candidates.

Disclaimer: Every interviewer is different and there is no guarantee any of these types of questions will even come up. However, I believe one or more of these types of questions will likely be asked in almost every interview. And by categorizing questions into these four categories, it should be much easier for candidates to prepare for them.

It' also worth noting that candidates should also integrate these themes into their resumes since it may help them get through some initial rounds of screening.

Genre 1: Why did you choose [fill in the blank]?

The blank here could target any significant decision that a candidate has made.

Popular examples include one's choice of university, major, company to work for, type of job, etc.

The real purpose of these questions is not to hear a specific answer, but to ascertain whether or not a candidate is focused and goal oriented.

Employers generally do not hire candidates that seem to be drifting through life. If a candidate has mostly floated through life and ended up where they are by chance, it's highly unlikely they'll be the type of employee who thinks out of the box, takes action and makes a real impact.

While nobody can be expected to know everything they want or need and have it all mapped out, it always sounds more impressive when candidates appear to know what they want and steer themselves in that direction.

Sometimes this type of question can be easy to answer and candidates will naturally jump right in and respond.

However, it's important for candidates to keep in mind what the interviewer is really looking for. For example, a truthful and potentially easy answer to why one chose a particular university might be "The girl I was dating at the time went there and it was close by" or even "I heard it was a good school and it was close by." But a better answer might generally be something like "I researched many universities and this one had an excellent program for my field of study. And it didn't hurt that it was close by!" This answer exudes more focus and purpose than the first two answers.

Genre 2: What is the largest project you've worked on?

This type of question is slightly more direct than the previous one.

Interviewers are genuinely interested in finding out whether or not candidates have worked on

sizeable projects. When faced with large projects, some people are immediately intimidated and see one huge obstacle. However, some naturally break it down into components and see a group of manageable projects. Interviewers prefer the latter group. They want people who can analyze projects, decompose them into smaller pieces, organize a game plan, and execute.

Faced with this type of question, you'll need to produce examples of sizeable projects where you've demonstrated a combination of these skills and attributes. Naturally, it will be better if the example involves a sizeable project, but smaller projects and academic achievements can be equally valid.

The ideal project is one where you've started from scratch and brought something to fruition. Some examples include organizing events, building software, putting together and giving a presentation, a research paper, etc.

Genre 3: Describe a group-oriented event where you took a leadership role

Questions involving the word 'leadership' are very straightforward. Interviewers generally want to hire confident candidates who can become potential leaders. It is worth noting that confidence is generally observed rather than articulated. Moreover, interviewers will be able to detect arrogance very easily, so too much confidence is inadvisable.

When gauging leadership skills, interviewers will also look for communications skills and charisma. Ultimately, leaders must be able to motivate others.

To answer this question appropriately, you'll need to share detailed examples of group projects or events where you've demonstrated these skills. You may also be asked to explain how you resolved issues in the group dynamic and how your intervention encouraged the group to achieve improved results.

Genre 4: Analytical and free thought questions (AKA brainteasers)

For anyone who has interviewed for finance related positions, this is probably the most well known genre of questions and gets the most attention. There are multiple books (eg, Heard on the Street by Timothy Falcon Crack and Quant Job Interview Questions and Answers by Mark Joshi) and websites dedicated to covering 100s if not 1000s of analytical and free thought questions (often labeled as brainteasers).

Interviewers often ask these questions to assess mathematical aptitude. Questions range from those testing from basic arithmetic (eg, what is 252?) or general statistics (eg, what is the probability of being more than two standard deviations from the mean?) all the way up to stochastic differential equations (eg, integrating some function with respect to Brownian motion).

Brushing up on technical disciplines (mathematics, physics, statistics, etc) might help, but it's difficult to prepare for such questions as they cover such a wide span of material.

The second purpose of these questions is to test logical reasoning. Questions may not be geared towards any specific mathematical skill. Moreover, the answers may or may not be reasonably attainable. The thought process and logic are actually more important than the answer. Some examples include:

- Q: What is the square root of 0.1?

- A: Between 0.31 and 0.32 (generally an iterative process of guessing but more mathematical approaches are possible)

- Q: A 10x10x10 cube made of 1x1x1 cubes. How many smaller cubes are visible?

A: 488 (either 100+100+80+80+64+64 or 103 - 83)

- Q: How do you get a fox, a goose and some grain across a river with just one boat?

A: Look it up!

- Q: How many phones are there in Manhattan?

A: No right answer. Interviewer is just looking for a sensible approach and estimate.

It is worth mentioning that some interviewers may appear sadistic and seem to actually enjoy watching candidates struggle with their questions. This should never be taken personally. For them, an interview is just a way to stroke their ego and manage their own insecurities. Candidates who have the misfortune to encounter one of these interviewers should just maintain their composure and do their best. It is possible that the interviewer is actually observing how the candidate reacts under stress.

Aaron Brask is a former banker at JPMorgan and Barclays Capital with a PhD in mathematical finance. He's also the author of the Wall Street Primer.