Aptitude for financial research
Financial research is a systematic study to understand facts and principles. It helps in evaluating different business projects. With the help of it, finance and investment decisions are much easier. While looking at a specific company, a researcher or analyst focuses on the financial statements of the company i.e., cash flow statement, profit, and loss statement, and Balance sheet.
A capability or capacity is required to conduct and understand the value of financial research. Some aptitude skills are required to perform and evaluate the research. There are various kinds of aptitude test which checks the abilities and skills of the candidates. For example, Verbal ability, reasoning ability, numerical ability, and Data analytics test.
Financial Researchers are expected to have clarity of thought, strong logical reasoning to undertake complex calculations, implement research, and feasibility studies. Two types of financial analysis: Technical and Fundamental. Technical looks at quantity charts such as moving trends and averages while fundamental uses ratios such as earning per share EPS.
Financial tests are comparatively more difficult than any other normal tests. These tests not only comprise of tables, questions, and formulas but also contain short descriptions, scenarios, and accompanied by numerical data. These tests include financial definitions and concepts also ask for more elaborate calculations. Psychology, of course, plays an important role in solving tests. Managers want to see whether a person can draw conclusions and assumptions by using pure logic. The study helps set financial policy, build long-term goals, evaluating economic trends, and identifying projects and companies for investment. This is done with the synthesis of numbers and data.