When Genius Failed Test | Mid-Book Test - Hard

Roger Lowenstein
This set of Lesson Plans consists of approximately 99 pages of tests, essay questions, lessons, and other teaching materials.
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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. What models did Long-Term follow?

2. How much did Long-Term plan to take from its profits?

3. What happened to Meriwether's Treasury bill deal before it was resolved?

4. In 1996, who did Long-Term first approach to handle their credit?

5. Where was David W. Mullins working when Meriwether hired him?

Short Essay Questions

1. Why did hedge funds make money for managers?

2. How would a loan from a major bank help the partners at Long-Term make money?

3. What was Meriwether's business model for Long-Term?

4. When did Meriwether begin making sales calls for Long-Term?

5. What did Long-Term do to limit risk in bond trading?

6. Why did bonds lose their value in the 1970's?

7. Why was Meriwether made a partner at Salomon?

8. Why was it difficult to know the exact amount of assets Long-Term held?

9. What dictates whether or interest only securities rise or fall?

10. When additional investors returned to the Italian market, what did Long-Term do?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

When Long-Term was faced with financial turmoil, it took only five weeks for it to lose staggering amounts of money. Examine the following points:

1) What was the financial profile of Long-Term prior to Russia's debt default?

2) What did the financial profile change so drastically?

3) What moves did Long-Term make to correct the situation and why were they ineffective?

Essay Topic 2

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.

Essay Topic 3

The academic model Long-Term used for investing proved impressive on many occasions.

1) What were the principles behind the Value-at-Risk models?

2) What were the problems with these models?

3) How did these models impact the investments placed by Long-Term?

(see the answer keys)

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