Interviewers ask this kind of question to surface how you think, not what you remember. The strongest answers are specific, calmly told, and end on what changed.
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Intraday, the portfolio breaches a concentration or VaR limit — partly from a position you added, partly from correlated positions moving together in a selloff. You believe the risk is temporary. Do you cut to get back inside the limit now, or escalate first?
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