YOUR KILLER EQUITIES INTERVIEW QUESTIONS: Name three of your favourite stock picks, tell me their P/Es, 2 year forwards...

Here's the latest question sent in by site visitors who have attended equities interviews at investment banks. If you disagree with the proposed answer at any point, please express your opinion in the comments box below.

THE QUESTION: Name three of your favourite stock picks, tell me their P/Es, 2 year forwards, index % weighting and what their net earnings were last year?

THE ANSWER

The point here is that if you are going to prepare a stock pick, make sure you know everything about that stock, including which investors own it, what the liquidity is like etc. Equally, however, micro knowledge alone is not sufficient since to answer the part about the 2 year forwards, you would need to know the rates term structure of that country (plus of course the dividend yield).