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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 CorrelationeasyAbsorption RatioeasyParametric Expected ShortfalleasyMaximum Drawdown and Calmar RatioeasyHistorical Value-at-RiskeasyLopez VaR Scoring RulemediumExpected Shortfall (CVaR)mediumKupiec Proportion of Failures VaR BacktestmediumEWMA Covariance MatrixmediumKelly Criterion Position SizingmediumEWMA Beta Hedge RatiomediumCornish-Fisher Parametric VaRmediumFactor Covariance EMA UpdatemediumGarman-Klass Volatility EstimatormediumConditional Drawdown at RiskmediumParametric Component VaRmediumModified Sharpe RatiomediumOmega RatiomediumLGD Beta Distribution FitmediumUlcer IndexhardCornish-Fisher VaRhardHill Estimator for Tail IndexhardMarginal Contribution to Parametric VaRhardKalman Filter Dynamic BetahardMerton Distance-to-DefaulthardGPD Tail VaR (Peaks Over Threshold)hardSpectral Risk Measure
View all 27 risk management questionsRelated topics