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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 Milken's biggest contribution to Drexel in the early years?
(a) an entry into the social circles of high-yield bond traders
(b) engineering the change over to computers
(c) a study of the securities delivery system which cut the delivery time from five days to one
(d) a recruiting system to get the brightest Ivy League graduates

2. What was Milken's problem with back office people at Drexel?
(a) He did not work well with Jewish people.
(b) He could not communicate with them.
(c) He was less educated than they were.
(d) He did not understand their work.

3. What benefit did Milken arrange for his low grade investment group for the next 14 years?
(a) extensive paid vacations
(b) higher salaries and larger offices
(c) half the profits
(d) 35% of the profits

4. Who dominated the market in junk bond funds from 1978 on?
(a) Lehman Brothers
(b) Drexel
(c) Morgan Investments
(d) Fidelity

5. What was the estate they bought?
(a) the Jackie Coogan estate
(b) the Judy Garland estate
(c) the Clark Gable-Carole Lombard estate
(d) the Pickford estate

Short Answer Questions

1. What did Milken's involvement in this business do for him personally?

2. When he heard on the radio about a change in options to buy stocks, what did Milken do that saved Drexel Burnham Lambert?

3. Why did Drexel have to separate from J. P. Morgan?

4. Where did Milken want to move his bond operation unit in 1978?

5. What influenced Milken to become interested in low grade bond portfolios?

(see the answer key)

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