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This quiz consists of 5 multiple choice and 5 short answer questions through Hedge Fund.

Multiple Choice Questions

1. How much money did Meriwether need to start Long-Term?
(a) $100,000.
(b) $2.5 billion.
(c) $50 million.
(d) $1 billion.

2. Who typically invested in hedge funds?
(a) Foreign banks.
(b) The general population.
(c) The Federal Reserve.
(d) A club of exclusive investors.

3. What unusual event happened when Meriwether began working with Treasury futures?
(a) The price fell.
(b) The U.S. government collapsed.
(c) He lost millions.
(d) The price rose.

4. What was the end result of Meriwether's Treasury bill deal?
(a) It made a lot of money.
(b) It was not a notable deal.
(c) It frightened his colleagues.
(d) It lost a lot of money.

5. Meriwether was threatened with what, if his Treasury bill deal did not pan out?
(a) A promotion.
(b) Termination.
(c) A lawsuit.
(d) Death.

Short Answer Questions

1. How was Meriwether's career affected following the Treasury bill deal?

2. Who developed the Black-Scholes model?

3. What type of strategy did Long-Term employ?

4. What hedge fund caused a pound devaluation in Europe but made over a billion dollars?

5. What did Meriwether do with his staff?

(see the answer key)

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