View a FREE sample

This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. Who gains from working with hedge funds?

2. In order for Meriwether's Treasury futures investment to work, what did he need market prices to do?

3. What financial crisis did Long-Term make it through that most of the market didn't?

4. What did the banks and investors use to estimate Long-Term's assets?

5. In 1994, why did the yield raise on the thirty year Treasury bond?

Short Essay Questions

1. What were the legal limits on hedge fund investors?

2. What was Long-Term's objective in seeking out a bank to finance their credit?

3. What did the Black-Scholes model help Long-Term to predict?

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

5. Although Long-Term was performing so well by 1996, how many Americans knew of the fund's existence?

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

7. What was Meriwether's group at Salomon given the authority to do?

8. Why was Meriwether made a partner at Salomon?

9. How did Long-Term respond to firms that would not waive the fee for the haircut?

10. Why did Black and Scholes believe that price changes were random?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

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.

Essay Topic 2

Write a brief essay supporting or refuting the following statement, citing examples from the text: Long-Term set out to be a low risk company and exemplified that mission for several years.

Essay Topic 3

In the late 1970's, the financial climate was changing due to technology. Examine the changes this brought about in the financial market and how these changes directly affected Meriwether.

(see the answer keys)

This section contains 505 words (approx. 2 pages at 300 words per page) View a FREE sample