Beta equals the covariance between expected returns on the asset and on the stock market, divided by the variance of expected returns on the stock market. A company whose equity has a beta of 1.0 is “as risky” as the overall stock market and should therefore be expected to provide returns to investors that rise and fall as fast as the stock market. Feldman is Wall Street Prep’s Founder and Managing Partner. His responsibilities include business development, development of courses, and overseeing training programs. CF can be negative (for example companies with high capex), but since value of the business is driven by cash flows, not accounting profits, using multiples such as P/E is not quite as beneficial as looking at cash flow multiples. Street Prep was established by investment bankers to enhance the competitive profile of students who seek a career in the financial services industry. I’ve gotten requests for more in-depth material on interviews since I started the site, so I’ve developed interview guides and financial modeling courses to help you.I would like to add a point about thank you letters. You won’t get an IB job in general if you don’t have a finance background and relevant internships. In 2005 those topics might have been considered too advanced, but in 2015 anything is fair game, given the amount of resources, books, videos, etc. available. Maybe they won’t ask super-complicated questions, but anything is possible. M&A transactions and other major corporate actions. As an intermediary, it connects companies that need capital with investors who have capital to spend. I believe investment banking offers the best environment for growth and development in the areas of finance, economics, and accounting—all important areas for business. As a result, I believe it offers the best opportunity to enhance my skill set and apply it on a real-life and current basis. Furthermore, I enjoy situations that involve analyzing strategies, environmental conditions, structure, and future opportunities.