View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through The Fall.

Multiple Choice Questions

1. What hedge fund caused a pound devaluation in Europe but made over a billion dollars?
(a) Endowment Fund.
(b) Quantum Fund.
(c) Treasury Fund.
(d) Millenium Fund.

2. What was J.F. Eckstein & Co. primarily working on in 1979?
(a) IO's.
(b) Bonds.
(c) Treasury Bill futures.
(d) Stocks.

3. In 1994, why did the price of bonds drop?
(a) There was too much wealth in America.
(b) Property value went down.
(c) The Fed raised interest rates.
(d) The Fed lowered interest rates.

4. How much did Long-Term plan to take from its profits?
(a) 10%.
(b) 15%.
(c) 30%.
(d) 25%.

5. What did the Black-Scholes model believe was constant?
(a) Income.
(b) Meriwether's enthusiasm.
(c) Volatility.
(d) Growth.

Short Answer Questions

1. In 1998, what were many hedge funds selling insurance against?

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

3. In bond trading, what are loans backed by collateral called?

4. How much did Long-Term earn in its first year of operation?

5. After the first bad year experienced by Long-Term, what did its overall record look like?

(see the answer key)

This section contains 179 words (approx. 1 page at 300 words per page) View a FREE sample