Coach note

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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Judgment & ambiguity · When to act

Your systematic rebalance rule has just been tripped, but only by a hair, transaction costs and market impact would eat much of the tracking benefit, and the drift may reverse on its own by next session. Do you trade the rebalance or let it ride?

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Your systematic rebalance rule has just been tripped, but only by a hair, transaction costs and market impact would eat much of the tracking benefit, and the drift may reverse on its own by next session. Do you trade the rebalance or let it ride?

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