View a FREE sample

This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What is the name given to the junk bond seminar that Michael Milken speaks at every year in Beverly Hills?
(a) The Predator's Ball.
(b) The Junker's Ball.
(c) The Golden Parachute.
(d) TheMoney Masquerade.

2. Ranieri says Bill Voute always has a _____.
(a) Sportscar image.
(b) Biting wit.
(c) Political agenda.
(d) Need to pick at people.

3. The quote in "The Art of War" that captures the essence of the chapter is "God gave you eyes, _____."
(a) Plagiarize.
(b) Plot their demise.
(c) Watch your back.
(d) Look ahead.

4. Ronald O. Perelman is a hostile trader who took over which cosmetics company?
(a) L'Oreal.
(b) Revlon.
(c) Smashbox.
(d) Maybelline.

5. What is another name for a call option?
(a) A stay/
(b) A shared equity.
(c) A warrant.
(d) A glue bond.

Short Answer Questions

1. Ranieri describes Tom Strauss as _____.

2. On Wall Street, there is no theoretical basis for pricing a homeowner's option to _____ his loan.

3. What is the chief occupational hazard of the trading floor?

4. According to the author, what is the rarest and most valuable asset a Wall Street firm can possess?

5. What do rating services rely exclusively on to assess a company's creditworthy status?

Short Essay Questions

1. Does Michael Milken consider himself a part of Drexel Burnham?

2. What is the "gospel according to Ranieri"?

3. How does Lewie Ranieri feel about Michael Milken? How does this differ from John Gutfreund's opinion of him?

4. Despite the upheaval in the mortgage market, what is the initial objection that remains valid as the mortgage market evolves?

5. From the moment the Federal Reserve lifted interest rates in October 1979, what happens to the thrifts?

6. What is drifting away from Salomon Brothers and toward Drexel Burnham in 1987? Why?

7. What happens to the average age and the average age at Salomon Brothers in London in 1987?

8. Why does one trader think that Mark Smith is not a Trojan Horse like some of the other traders believe?

9. What is happening in colleges in Britain by the end of 1986?

10. How does Bear Stearns take the $250 million loss that Howie Rubin incurs at Merrill Lynch?

(see the answer keys)

This section contains 747 words (approx. 3 pages at 300 words per page) View a FREE sample