Question

Tell me about a challenge you overcome as a financial analyst?

Answer 1

Challenges you will overcome as a financial analyst are as follows-

A. Challenges related to fluctuations in the free cash flows estimation of a company which will be not remaining uniform throughout various years

B. challenges related to estimation of the growth rate of a company because growth rate are not easy to estimate and there would be a very high level of expertise needed for prediction of the growth rate

C. challenges needed for proactive estimation of various risk factors associated with micro environment of the company in relation to the changing in demand and supply as well as technological advancement

D. challenges related to fluctuations in the macro environment which will be including risk associated with estimation of the changes in the monetary policy along with changes in the inflation expectations and changes in the domestic policies

E. Challenges related to global factors which will be causing additional risk for the company like exchange rate fluctuations along with Global events and foreign political changes

F. There will also be a challenge related to overcoming my biasness and prejudice about investment into various selected companies

G. There will also be challenges related to communication in regards to the the data gathering with the management which a financial analyst will be analysing in his own capacity because there can be easily influence by these management on the financial analyst.