Just had a recent interview..
I was asked if I was given $10,000 and requried a 8.8% return in 4 months. What would be my investing mix?
I was asked if I was given $10,000 and requried a 8.8% return in 4 months. What would be my investing mix?
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really open ended question. I would think as long as you realized 8.8% is almost 30% annual which is a strong competitive return and you provided a good explanation for a not too crazy yet no too-risk averse strategy then it should have been fine. I think they were just looking for you to be able to explain a strategy and be someone who is knowledgeable on current market trends, etc.
What would I say? Something stupid probably and I would have bombed it. I think its a great question to ask though. I'll get back to you if I think of something worthwhile.
Sell out of the money call options. Volatility is high and you can certainly capture 8.8% over 4 months. If you really don't care about risk, sell put options.
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