View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Dear Investors.

Multiple Choice Questions

1. What company was Kapor the founder of?
(a) Lotus Development Corporation.
(b) Circuit Finance, Inc.
(c) Finance Development International.
(d) Lochfield Growing Corporation.

2. Who ran the London office for Long-Term?
(a) Mullins.
(b) Haghani.
(c) Meriwether.
(d) Buffet.

3. What did the traders accept about the financial models they used?
(a) They removed the element of surprise.
(b) They were imperfect.
(c) They were expensive.
(d) They were smarter than humans.

4. What did Meriwether warn his investors against in 1994?
(a) Not investing enough with Long-Term.
(b) Further growth.
(c) A repeat performance.
(d) His early retirement.

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

Short Answer Questions

1. What did Long-Term do with off-the-run bonds?

2. How much money did Meriwether need to start Long-Term?

3. Who became the temporary CEO of Meriwether's group when scandal hit?

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

5. What was the typical scenario for bond investors in 1994?

(see the answer key)

This section contains 183 words (approx. 1 page at 300 words per page) View a FREE sample