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This quiz consists of 5 multiple choice and 5 short answer questions through Part 1: Chapter 3, Transformation.

Multiple Choice Questions

1. What was the Wall Street attitude toward low grade bonds at the time Milken started trading in them?
(a) They were looked down on.
(b) They were unknown to Wall Street.
(c) They were used as charitable donations.
(d) Then were used for scratch paper.

2. How did Milken and his wife travel to Los Angeles?
(a) by car
(b) by bus
(c) by train
(d) by private jet

3. Who becomes Milken's ally and public face in 1974?
(a) Tubby Burnham
(b) Cary Grant
(c) Khun Loeb
(d) Fred Joseph

4. What advantage did Milken's kind of debt offer?
(a) It did not tie up cash the way loan repayments did.
(b) It was easier to use than getting a bank loan.
(c) It was separate from bank loans and the bondholder could sell his bonds whenever he wanted
(d) It was done under the table so the banks did not know about it.

5. What influenced Milken to become interested in low grade bond portfolios?
(a) an unexpected profit from his own low grade bonds
(b) the Hickman study, an analysis of bond yields
(c) a course he took at Wharton
(d) the Morgan report on bond yields

Short Answer Questions

1. Keeping New York office hours, at what time did they begin work in L. A.?

2. What were Milken's results the first year in his new position at Drexel Burnham?

3. Who moved to Los Angeles with Milken?

4. Who dominated the market in junk bond funds from 1978 on?

5. What was Milken's biggest contribution to Drexel in the early years?

(see the answer key)

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