Sample interview questions: How do you approach evaluating and recommending investment opportunities in the energy sector?
Sample answer:
Evaluation
- Industry Landscape: Analyze the macroeconomic environment, regulatory framework, technological advancements, and geopolitical risks affecting the energy sector.
- Company Analysis: Assess the financial health, operational efficiency, management team, and competitive positioning of potential investment targets.
- Project Evaluation: Evaluate the viability of specific energy projects based on factors such as resource availability, production costs, revenue projections, and environmental impact.
- Risk Assessment: Identify and quantify financial, operational, environmental, and geopolitical risks associated with potential investments.
Recommendation
- Alignment with Investment Mandate: Ensure recommendations align with the client’s investment goals, risk tolerance, and time horizon.
- Diversification: Diversify across different types of energy assets (e.g., fossil fuels, renewables, energy infrastructure) and geographic regions to mitigate risk.
- Investment Horizon: Consider the time frame over which the investment is expected to genera… Read full answer