When Genius Failed Test | Final 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. Once crisis hit, how many weeks did it take for the partners to lose $3.6 billion?

2. What did Scholes and Merton think of some of the private trades Long-Term made in 1998?

3. What was the result for some banks due to their involvement in the derivatives market?

4. To create a paired-share, what is common stock partnered with?

5. During the turmoil of 1998, investors avoided Long-Term because they were trying to avoid what?

Short Essay Questions

1. In 1997, what was Meriwether encouraging his employees to do?

2. Following the crisis in Russia, what position did investors take that adversely affected Long-Term?

3. What did the Fed determine would happen if Long-Term failed?

4. Why did banks and investment banks get involved in the derivatives market?

5. What strategy led to Long-Term's downfall during the Russian financial crisis?

6. What was the financial climate when Merton and Scholes were awarded the Nobel Prize?

7. Why did the issue in Russia cost Long-Term money on an initial basis?

8. What contributes to the estimation of market volatility?

9. How much of Long-Term did the Union Bank of Switzerland buy on a hedge?

10. By the end of August 1998, what did the movement in the bond market look like?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Basing your answer on the height of Long-Term's career, compare and contrast several of the companies on Wall Street with Long-Term, citing examples from the text.

Essay Topic 2

The investment requirements of Long-Term were quite stringent. Citing examples from the text, write an essay examining the investment requirements and opportunity for return for potential Long-Term investors.

Essay Topic 3

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.

(see the answer keys)

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