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Markets & trading
Risk Management
VaR, position sizing, Kelly criterion
Overview
About risk management questions in quant interviews
Value-at-risk, position sizing, and Kelly-criterion betting — the risk questions that test whether you can size a trade, not just price it.
How to study this topic
A path that works
- 1
Start with the easy set
Warm up with the 6 easy risk management questions. Quick wins build pattern recognition before complexity ramps.
- 2
Drill the medium tier next
14 medium questions sit in the sweet spot where most interview questions cluster. Time yourself, then redo any you missed two days later.
- 3
Stress-test on hard problems
7 hard questions simulate the on-site round. Skip looking at solutions for at least 20 minutes, then write up your approach.
The library
All 27 risk management questions
easyEWMA Pearson CorrelationeasyLopez VaR Scoring RuleeasyAbsorption RatioeasyParametric Expected ShortfalleasyHistorical Value-at-RiskeasyMaximum Drawdown and Calmar RatiomediumEWMA Covariance MatrixmediumKelly Criterion Position SizingmediumUlcer IndexmediumParametric Component VaRmediumCornish-Fisher Parametric VaRmediumFactor Covariance EMA UpdatemediumConditional Drawdown at RiskmediumOmega RatiomediumModified Sharpe RatiomediumExpected Shortfall (CVaR)mediumKupiec Proportion of Failures VaR BacktestmediumEWMA Beta Hedge RatiomediumLGD Beta Distribution FitmediumGarman-Klass Volatility EstimatorhardMarginal Contribution to Parametric VaRhardCornish-Fisher VaRhardMerton Distance-to-DefaulthardKalman Filter Dynamic BetahardSpectral Risk MeasurehardGPD Tail VaR (Peaks Over Threshold)hardHill Estimator for Tail Index
View all 27 risk management questionsRelated topics