Mid-Book Test - Hard
|Name: _____________________________||Period: ___________________________|
This quiz consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. What did the banks and investors use to estimate Long-Term's assets?
2. What notable invention changed the face of trading in the 1970's?
3. How much money did Long-Term earn in 1996?
4. What level of risk did Long-Term offer?
5. In order for Meriwether's Treasury futures investment to work, what did he need market prices to do?
Short Essay Questions
1. Who warned Long-Term about making trades that counted on falling stock prices?
2. What was the goal of the Federal Reserve when it was created?
3. In terms of the spreads in 1998, what was the difference between what Long-Term expected them to do and what they actually did?
4. On what did Long-Term base the claim that it was difficult to lose money with them?
5. Who was Jon Corzine?
6. Why did Black and Scholes believe that price changes were random?
7. What move did Salomon make that surprised Long-Term?
8. Following the crisis in Russia, what position did investors take that adversely affected Long-Term?
9. Why did Meriwether begin recruiting employees he had worked with at the Arbitrage Group?
10. What are relative value trades?
When Meriwether set up Long-Term, he had to take many steps to create the company. Write an essay examining the process Meriwether went through to create Long-Term.
Write a brief essay supporting or refuting the following statement, citing examples from the text: Long-Term took part in risky investments as the market became over-saturated.
Those involved at the top levels of Long-Term were given respect, money and opportunity. Write a brief essay analyzing some of the advantages a career at Long-Term gave many of the partners, citing examples from the text.
This section contains 303 words
(approx. 2 pages at 300 words per page)