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

Multiple Choice Questions

1. Who helped Meriwether raise money for Long-Term?
(a) Salomon Brothers.
(b) Warren Buffet.
(c) Merrill Lynch.
(d) No one.

2. What type of funds gained popularity in the 1990's?
(a) Real estate.
(b) Mutual.
(c) Value.
(d) Treasury.

3. What type of strategy did Long-Term employ?
(a) High risk.
(b) Low risk.
(c) Moderate risk.
(d) Whatever was dictated by the market.

4. What notable company went bankrupt in the 1970's?
(a) Penn Coal.
(b) Penn Central Railroad.
(c) Penn North Distillery.
(d) Penn Weapons Industry.

5. Who became the temporary CEO of Meriwether's group when scandal hit?
(a) Paul Mozer.
(b) Warren Buffet.
(c) John Meriwether.
(d) J.F. Salomon.

Short Answer Questions

1. Who developed the Black-Scholes model?

2. What unusual event happened when Meriwether began working with Treasury futures?

3. How much did Long-Term plan to take from its profits?

4. Where was Robert C. Merton working when Meriwether hired him?

5. What was Meriwether's team allowed to do, following the Treasury bill deal?

(see the answer key)

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