7 Tricky Interview Questions Private Equity and Hedge Fund Firms Ask

7 Tricky Interview Questions Private Equity and Hedge Fund Firms Ask7 Tricky Interview Questions Private Equity and Hedge Fund Firms AskBrainteasers are like standardized tests of little relevance to the actual subject but designed to compare all people equally. As for what ansicht tricky interview questions entail, they typically encompass probability and/or statistics. Both hedge funds and private equity firms use brainteasers during the interview process. But hedge funds use them more often because these questions test mental math skills, which are perhaps more important for hedge fund jobs than PE positions.Accuracy, of course, is key to answering brainteasers. But so is your thinking process. You should expect to explain your reasoning a logical verbal breakout followed by a wrong answer is better than just a plain wrong answer. Dont forget Pay attention to your interviewers face for clues as to whether youre going in the right or wrong direction. And, since brainteasers are mea nt to be tough, its fine to take a minute to collect your thoughts and outline the steps toward calculating your answer.That said, here are some example questions (along with their answers) to give you an idea of what to expect if youre interviewing with a PE firm or hedge fund.1. What is the probability of drawing two sevens in a card deck?You can multiply the individual probabilities to get the cumulative probability. There are four 7s in a deck of 52 cards. Therefore, the probability of drawing the first 7 is 4/52 or 1/13. On the second draw, there are only three 7s in a deck of 51 cards, yielding a probability of 3/51 or 1/17. So 1/13 multiplied by 1/17 equals a cumulative probability of 1/221. (Dont expect to be able to use paper or a calculator for 13 times 17. You can just simplify the math in your head by saying 17 times 10 is 170, positiv 3 times 17 which is 51, and yields 221.)2. You play a game of dice where you are paid the equivalent amount of dollars to the number you roll (i.e., if a 4 is rolled then you get $4). You roll one fair six-sided die. How much are you willing to pay for this roll?The expected return is every possibility multiplied by the probability of the possibility. The average of all the potential die rolls, which each have equal probabilities, is $3.50, the midpoint between 1 and 6.How much would you pay to play the same game, but with the vorkaufsrecht to roll again? If you only roll once you get that score if you choose to roll again, you get the score of the second roll.Intuitively, you know the price should be higher since youre given the option to roll again if youre dissatisfied with your first roll. You should only roll a second time if the first roll is less than 3.5, the expected value. Thus, you have the following six scenarios rolling 4, 5, 6 and stopping, or rolling 1, 2, 3, and rolling again. Again, the expected roll is 3.5, so the latter three outcomes have expected returns of 3.5. Therefore, a game of two rolls exp ected return is (4 + 5 + 6 + 3.5 + 3.5 + 3.5)/6 = $4.25.Again, same games, option for a third roll now. How much will you pay?Follow the same logic as before two rolls have an expected return of 4.25 so you will only roll a third time if you get above that. You have an expected return of (4.25 + 4.25 + 4.25 + 4.25 + 5 + 6)/6 = $4.67. As the number of rolls approaches infinity, the price you pay gets closer to $6.00.3. You have stacks of quarters, dimes, nickels, and pennies. The number of coins in the stacks is irrelevant. You can take coins from a stack in any amount, any order, and place them in your hand. What is the greatest dollar value in coins you can have in your hands without being able to make change for a dollar with the coins in your hand?Start adding the highest coin to your hand, the quarter. Four quarters make a dollar, so you can only have three quarters $0.75. Five dimes would bring it to a dollar, so you can only have four dimes $1.15 = 0.75 + .40. You cant add a n ickel because three quarters, two dimes, and the additional nickel would create a dollar. But you can add four pennies for a maximum total of $1.19 = 1.15 + .04.4. A closet has three light bulbs inside. Next to the door (outside) are three switches for each light bulb. If you can only enter the closet one time, how do you determine which switch controls which light bulb?Turn on two switches, A and B, and leave them on for a few minutes. Then turn off switch B and enter the room. The bulb that is lit is controlled by switch A. Touch the other two bulbs, which are off. The one that is still warm is controlled by switch B. The third bulb, off and cold, is controlled by switch C.5. What is the square root of 7,000,000 (approximately)?You know that 2 * 2 = 4 and that 3 * 3 = 9, and that 1,000 * 1,000 = 1,000,000 so the answer has to be between 2,000 and 3,000. Edge closer in, 2.5 * 2.5 = 6.25 and 2.7 * 2.7 = 7.29 so the answer is approximately 2,600.6. You are given a length of rope, whi ch can be lit to burn for an hour. However, the rope burns unevenly (meaning half of it burnt does not indicate a half-hour has passed). How would you burn the rope to know that a half-hour has passed?To measure a half-hour, burn both ends at once. One side will burn faster than the other, but the opposite side will burn slower such that when they meet, the equivalent of half the time has passed.If you were given two ropes, how would you measure 45 minutes?For two ropes, take one rope and burn both ends like the previous situation. At the same time, light the second rope on only one end. When the first rope burns out, a half hour has passed. The second rope only has 30 more minutes on it. Immediately burn the opposite end of the second rope. The fire will meet at both ends again, which is fifteen minutes.7. Youve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted. On how many of the smaller cubes is there any paint?First, note that the larger cube is made up of 1000 smaller cubes. Think about how many cubes are NOT painted. 8 x 8 x 8 inner cubes are not painted which equals 512 cubes. Therefore, 1,000 - 512 = 488 cubes that have some paint. Alternatively, you can calculate this by recognizing that two 10 x 10 sides are painted (200) plus two 10 x 8 sides (160) plus two 8 x 8 sides (128) 200 + 160 + 128 = 488.The above was excerpted from the Vault Guide to Private Equity and Hedge Fund Interviews.Follow us onTwitter.Read More50 Best Banking Firms to Work ForHow to Land a Private Equity Job11 Interview Questions Private Equity Firms Ask (and How to Answer Them)

10 tweaks to your morning routine that will transform your day

10 tweaks to yur morning routine that will transform yur day10 tweaks to yur morning routine that will transform yur dayI dont know anyone who couldnt use a little boost in their energy and self-control.Researchers at the University of Nottingham recently published findings from their exploration of 83 separate studies on energy and self-control. What they found will change the way you start your day.Follow Ladders on FlipboardFollow Ladders magazines on Flipboard covering Happiness, Productivity, Job Satisfaction, Neuroscience, and moraThe researchers found that self-control and energy are not only intricately linked but also finite, daily resources that tire much like a muscle. Even though we dont always realize it, as the day goes on, we have increased difficulty exerting self-control and focusing on our work. As self-control wears out, we feel tired and find tasks to be mora difficult and our mood sours.This exhaustion of self-control kills your productivity, and it makes the mor ning hours, when self-control is highest, the most important hours of the day.But the trick isnt just to spend your morning hours working its to do the right things in the morning that will make your energy and self-control last as long as possible.For the past 33 years, I have looked in the mirror every morning and asked myself If today were the last day of my life, would I want to do what I am about to do today? And whenever the answer has been No for too many days in a row, I know I need to change something. Steve JobsThe Nottingham research has led me to uncover ways we can break bad habits in the morning and maximize our energy and self-control throughout the day.Whether you naturally wake up feeling alert and productive or rise with the brainpower of a zombie, these tips will help you transform your morning routine and set a positive tone that lasts the entire day.Start with exerciseResearchers at the University of Bristol found that people who exercise during the workday ha ve more energy and a more positive outlook, which are both critical to getting things done. Getting your body moving for as little as 10 minutes releases GABA, a neurotransmitter that makes your brain feel soothed and keeps you in control of your impulses. Exercising first thing in the morning ensures that youll have the time for it, and it improves your self-control and energy levels all day long.But drink some lemon water firstDrinking lemon water as soon as you wake up spikes your energy levels physically and mentally. Lemon water gives you steady, natural energy that lasts the length of the day by improving nutrient absorption in your stomach. You need to drink it first thing in the morning (on an empty stomach) to ensure full absorption. You should also wait 15-30 minutes after drinking it before eating (perfect time to squeeze in some exercise). Lemons are packed with nutrients theyre chock full of potassium, vitamin C, and antioxidants. If youre under 150 pounds, drink the ju ice of half a lemon (a full lemon if youre over 150 pounds). Dont drink the juice without water because its hard on your teeth.No screen time until breakfastWhen you dive straight into e-mails, texts, and Facebook, you lose focus and your morning succumbs to the wants and needs of other people. Its much healthier to take those precious first moments of the day to do something relaxing that sets a calm, positive tone for your day. Jumping right into electronics has the opposite effect - its a frantic way to start your day. Exercising, meditating, or even watching the birds out the window are all great ways to start the day.Eat arealbreakfastEating anything at all for breakfast puts you ahead of a lot of people. People who eat breakfast are less likely to be obese, they have more stable blood-sugar levels, and they tend to be less hungry over the course of the day. And these are just the statistics for people who eat any breakfast. When you eat ahealthybreakfast, the doors to a produ ctive day swing wide open. A healthy breakfast gives you energy, improves your short-term memory, and helps you to concentrate more intensely and for longer periods.Set goals for the dayResearch shows that havingconcretegoals iscorrelated with huge increases in confidence and feelings of control. Setting goals specific to the day puts everything into motion. Narrow your goals down to a few achievable ones that can easily be broken down into steps. Vague goals such as I want to finish writing my article are counter-productive because they fail to include the how of things. The same goal re-phrased in a more functional way would read something like this I am going to finish my article by writing each of the three sections, spending no more than an hour on each section. Now, you have more than simply something you want to achieve - you have a way to achieve it.Getting your morning started off right at home is important, but its only half the battle. If you fail to maintain that tone o nce you set foot in the office, your morning can lose momentum quickly. Heres how you can maintain a productive tone once you hit the officeFirst, clean your workspaceEven though its a pain to clean right when you get into work, it makes a big difference to your ability to concentrate. A Princeton University study found that people who worked in a clean workspace out-performed those who worked in a cluttered one because clutter pulls your attention away from your work. In fact, the effects of clutter on concentration are not all that different from the effects of multi-tasking.No e-mail until youve eaten three frogsEating a frog is the greatest antidote to procrastination, and the most productive people know the importance of biting into this delicacy first thing in the morning. In other words, spend your morning on something that requires a high level of concentration that you dont want to do, and youll get it done in short order. Make a habit of eating three frogs before you check your e-mail because e-mail is a major distraction that enables procrastination and wastes precious mental energy.Eat a live frog first thing in the morning, and nothing worse will happen to you the rest of the day. Mark TwainKeep morning meetings on scheduleMeetings are the biggest time waster there is, and they can ruin an otherwise productive morning. People who use their mornings effectively know that a meeting will drag on forever if they let it, so they inform everyone at the onset that theyll stick to the intended schedule. This sets a limit that motivates everyone to be more focused and efficient. Keep your morning meetings on time, and your entire day will stay on track.Dont multitaskMulti-tasking in the morning - when you have lots to do, tons of energy, and it feels like you can do two or three things at once - is tempting, but it sets your whole day back. Research conducted at Stanford University confirmed that multitasking is less productive than doing a single thing at a time. The researchers found that people who are regularly bombarded with several streams of electronic information cannot pay attention, recall information, or switch from one job to another as well as those who complete one task at a time.But what if some people have a special gift for multitasking? The Stanford researchers compared groups of people based on their tendency to multitask and their belief that it helps their performance. They found that heavy multitaskers (those who multitask a lot and feel that it boosts their performance) were actually worse at multitasking than those who like to do a single thing at a time. The frequent multitaskers performed worse because they had more trouble organizing their thoughts and filtering out irrelevant information, and they were slower at switching from one task to another. OuchMultitasking reduces your efficiency and performance because your brain can only focus adequately on one thing at a time. When you try to do two things at once, your brain lacks the capacity to perform both tasks successfully.Finally, say noNo is a powerful word that will protect your precious mornings. When its time to say no, avoid phrases such as I dont think I can or Im not certain. Saying no to a new commitment honors your existing commitments and gives you the opportunity to successfully fulfill them while your mind is fresh. Research conducted at the University of California Berkeley showed that the more difficulty that you have saying no, the more likely you are to experience stress, burnout, and even depression. Learn to use no, and it will lift your mood as well as your productivity.Bringing it all togetherThe right morning routine can make your day, every day. The trick is to be intentional about your mornings, understanding that a.m. hours are precious and should be handled with care.This article first appeared on LinkedIn.You might also enjoyNew neuroscience reveals 4 rituals that will make you happyStrangers know your s ocial class in the first seven words you say, study finds10 lessons from Benjamin Franklins daily schedule that will double your productivityThe worst mistakes you can make in an interview, according to 12 CEOs10 habits of mentally strong people10 tweaks to your morning routine that will transform your dayI dont know anyone who couldnt use a little boost in their energy and self-control.Researchers at the University of Nottingham recently published findings from their exploration of 83 separate studies on energy and self-control. What they found will change the way you start your day.The researchers found that self-control and energy are not only intricately linked but also finite, daily resources that tire much like a muscle. Even though we dont always realize it, as the day goes on, we have increased difficulty exerting self-control and focusing on our work. As self-control wears out, we feel tired and find tasks to be more difficult and our mood sours.This exhaustion of self-cont rol kills your productivity, and it makes the morning hours, when self-control is highest, the most important hours of the day.But the trick isnt just to spend your morning hours working its to do the right things in the morning that will make your energy and self-control last as long as possible.For the past 33 years, I have looked in the mirror every morning and asked myself If today were the last day of my life, would I want to do what I am about to do today? And whenever the answer has been No for too many days in a row, I know I need to change something. Steve JobsThe Nottingham research has led me to uncover ways we can break bad habits in the morning and maximize our energy and self-control throughout the day.Whether you naturally wake up feeling alert and productive or rise with the brainpower of a zombie, these tips will help you transform your morning routine and set a positive tone that lasts the entire day.Start with exerciseResearchers at the University of Bristol fou nd that people who exercise during the workday have more energy and a more positive outlook, which are both critical to getting things done. Getting your body moving for as little as 10 minutes releases GABA, a neurotransmitter that makes your brain feel soothed and keeps you in control of your impulses. Exercising first thing in the morning ensures that youll have the time for it, and it improves your self-control and energy levels all day long.But drink some lemon water firstDrinking lemon water as soon as you wake up spikes your energy levels physically and mentally. Lemon water gives you steady, natural energy that lasts the length of the day by improving nutrient absorption in your stomach. You need to drink it first thing in the morning (on an empty stomach) to ensure full absorption. You should also wait 15-30 minutes after drinking it before eating (perfect time to squeeze in some exercise). Lemons are packed with nutrients theyre chock full of potassium, vitamin C, and anti oxidants. If youre under 150 pounds, drink the juice of half a lemon (a full lemon if youre over 150 pounds). Dont drink the juice without water because its hard on your teeth.No screen time until breakfastWhen you dive straight into e-mails, texts, and Facebook, you lose focus and your morning succumbs to the wants and needs of other people. Its much healthier to take those precious first moments of the day to do something relaxing that sets a calm, positive tone for your day. Jumping right into electronics has the opposite effect - its a frantic way to start your day. Exercising, meditating, or even watching the birds out the window are all great ways to start the day.Eat arealbreakfastEating anything at all for breakfast puts you ahead of a lot of people. People who eat breakfast are less likely to be obese, they have more stable blood-sugar levels, and they tend to be less hungry over the course of the day. And these are just the statistics for people who eat any breakfast. Whe n you eat ahealthybreakfast, the doors to a productive day swing wide open. A healthy breakfast gives you energy, improves your short-term memory, and helps you to concentrate more intensely and for longer periods.Set goals for the dayResearch shows that havingconcretegoals iscorrelated with huge increases in confidence and feelings of control. Setting goals specific to the day puts everything into motion. Narrow your goals down to a few achievable ones that can easily be broken down into steps. Vague goals such as I want to finish writing my article are counter-productive because they fail to include the how of things. The same goal re-phrased in a more functional way would read something like this I am going to finish my article by writing each of the three sections, spending no more than an hour on each section. Now, you have more than simply something you want to achieve - you have a way to achieve it.Getting your morning started off right at home is important, but its only hal f the battle. If you fail to maintain that tone once you set foot in the office, your morning can lose momentum quickly. Heres how you can maintain a productive tone once you hit the officeFirst, clean your workspaceEven though its a pain to clean right when you get into work, it makes a big difference to your ability to concentrate. A Princeton University study found that people who worked in a clean workspace out-performed those who worked in a cluttered one because clutter pulls your attention away from your work. In fact, the effects of clutter on concentration are not all that different from the effects of multi-tasking.No e-mail until youve eaten three frogsEating a frog is the greatest antidote to procrastination, and the most productive people know the importance of biting into this delicacy first thing in the morning. In other words, spend your morning on something that requires a high level of concentration that you dont want to do, and youll get it done in short order. Ma ke a habit of eating three frogs before you check your e-mail because e-mail is a major distraction that enables procrastination and wastes precious mental energy.Eat a live frog first thing in the morning, and nothing worse will happen to you the rest of the day. Mark TwainKeep morning meetings on scheduleMeetings are the biggest time waster there is, and they can ruin an otherwise productive morning. People who use their mornings effectively know that a meeting will drag on forever if they let it, so they inform everyone at the onset that theyll stick to the intended schedule. This sets a limit that motivates everyone to be more focused and efficient. Keep your morning meetings on time, and your entire day will stay on track.Dont multitaskMulti-tasking in the morning - when you have lots to do, tons of energy, and it feels like you can do two or three things at once - is tempting, but it sets your whole day back. Research conducted at Stanford University confirmed that multitas king is less productive than doing a single thing at a time. The researchers found that people who are regularly bombarded with several streams of electronic information cannot pay attention, recall information, or switch from one job to another as well as those who complete one task at a time.But what if some people have a special gift for multitasking? The Stanford researchers compared groups of people based on their tendency to multitask and their belief that it helps their performance. They found that heavy multitaskers (those who multitask a lot and feel that it boosts their performance) were actually worse at multitasking than those who like to do a single thing at a time. The frequent multitaskers performed worse because they had more trouble organizing their thoughts and filtering out irrelevant information, and they were slower at switching from one task to another. OuchMultitasking reduces your efficiency and performance because your brain can only focus adequately on one thing at a time. When you try to do two things at once, your brain lacks the capacity to perform both tasks successfully.Finally, say noNo is a powerful word that will protect your precious mornings. When its time to say no, avoid phrases such as I dont think I can or Im not certain. Saying no to a new commitment honors your existing commitments and gives you the opportunity to successfully fulfill them while your mind is fresh. Research conducted at the University of California Berkeley showed that the more difficulty that you have saying no, the more likely you are to experience stress, burnout, and even depression. Learn to use no, and it will lift your mood as well as your productivity.Bringing It All TogetherThe right morning routine can make your day, every day. The trick is to be intentional about your mornings, understanding that a.m. hours are precious and should be handled with care.This article first appeared on LinkedIn.

9 Phrases Successful People Say Every Day (and You Should, Too)

9 Phrases Successful People Say Every Day (and You Should, Too)9 Phrases Successful People Say Every Day (and You Should, Too)Accomplishments are based on actions, bedrngnis on thoughts- yet the thought is always father to the deed.Achievement starts with an idea, a perspective, a point of view, or even just an attitude.Here are some of the things extraordinarily successful people say every day- and how those statements spur them to take actions that lead to greater success1. No one else is willing to do that...so thats what I will do.Often, the easiest way to be different is to do what other people are unwilling to do.Pick one thing other people wont do. It can be simple. It can be small. Doesnt matter. Whatever it is, do it.Instantly, youll be a little different from the rest of the pack.Then keep going. Every day, think of one thing to do that no one else is willing to do.After a week, youll be uncommon. After a month, youll be special. After a year, youll be incredible...and you definitely wont be like anyone else. (And, in the process, you will develop remarkable mental toughness.)2. Wow. That wasnt so bad after all.The most paralyzing fear is fear of the unknown. (At least it is for me.)Yet nothing ever turns out to be as hard or as scary as we think. Plus, its incredibly exciting to overcome a fear. You get that, I cant believe I just did that rush, a thrill you may not have experienced for a long time.Every day do something a little scary, whether physically or emotionally. (If you need a quick boost of confidence to get you going, here are some really simple tricks to use.)Then, trust that you will figure out how to overcome any problems that arise.Because you will.3. I cant do everything today...but I can take one small step.You have plans. You have goals. You have ideas.Who cares? You have nothing until you actually do something.Every day we let hesitation and uncertainty stop us from acting on our ideas. Pick one plan, one goal, or one idea. And get started. Just take one small step.The first step is by far the hardest. Every successive step will be a lot easier.4. I should just be quiet.I used to talk a lot. I thought I was insightful and clever and witty and, well, a real hoot.Occasionally, very occasionally, I might even have been one of those things.Most of the time I was not.Truly confident people dont feel the need to talk. While I hate when it happens, I still sometimes realize Im not talking because the other person is interested in what I have to say but because Im interested in what I have to say. (Ick.)Never speak just to please yourself. When you do, you please no one. (And, unlike these folks, you wont be particularly likable.)5. I dont care what other people think.Most of the time, we should worry about what other people think- but not if it stands in the way of living the lives we really want to live.If you really want to start a business- which you can do in just a few hours, mind you- but youre worried that pe ople might say youre crazy, do it anyway. Pick one thing you havent tried because youre concerned about what other people think or say, and just go do it.Its your life. Live it your way.6. Ill show you.Im ashamed to admit it, but one of the best ways to motivate me is to insult me- or for me to manufacture a way to feel insulted, regardless of whether Im actually justified in feeling that way or not.Justified is not the point fueling my motivation to do whatever it takes to prove that person wrong, and, more importantly, achieve what I want to achieve is all that matters.Call it artificial competition or manufactured anger call it childish and immature call it creating perceived insults...but it works for me. (Hey, it worked for Michael Jordan.)And it can work for you.7. Its not perfect...and Im OK with that.Yes, you only get one mglichkeit to make a first impression. Yes, perfection is the only acceptable outcome.Unfortunately, no product or service is ever perfect, and no project or initiative is perfectly planned. Work hard, do great work, and let it go. Your customers will tell you what needs to be improved, and that means youll get to make improvements that actually matter to people.You cant accomplish anything until you let go. Do your best, let go...and then trust that youll work hard to overcome any shortcomings.8. I should have done better.Weve all screwed up. We all have things we could have done better. Words. Actions. Omissions. Failing to step up, step in, or be supportive.Successful people dont expect to be perfect, but they do think they can always be better.So think back on your day. Think about what went well. Then think about what didnt go as well as it could have and take ownership. Take responsibility.And promise yourself that tomorrow you will do a lot better.9. Thats OK. Ill just outwork them.Like Jimmy Spithill, skipper of Americas Cup-winning Team Oracle USA, says, Rarely have I seen a situation where doing less than the other guy is a good strategy.You may not be as experienced, as well funded, as well connected, as talented...but you can always out think, out hustle, and out work everyone else. (Or, as I like to say, the extra mile is a vast, unpopulated wasteland.)Even when everything else seems stacked against you, effort and persistence can still be your competitive advantages- and they may be the only advantages you truly need.More From Inc.How to Form Habits That Youll Keep for Life8 Deadly Ways to Kill Employee MotivationHow to Turn Every Failure Into a Measure for SuccessPhoto of speech bubble courtesy of Shutterstock.