2020 Equity Market Rebound

This question tests your understanding of how interest rates, valuation, and investor behavior can drive equity prices independently of current economic headlines. In interviews, bankers want to see that you can explain why a low risk-free rate can support higher stock valuations in a discounted cash flow framework, and why investors may rotate into equities when government bonds offer very little return. It also checks whether you understand how index-level performance can be shaped by a small group of large companies, especially in a market where a few dominant names carry significant weight. Candidates should be able to connect macro conditions, capital allocation, and relative attractiveness across asset classes without confusing market prices with the state of the economy.