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

Multiple Choice Questions

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

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

3. When did Long-Term start losing money?
(a) When Meriwether opened a new company.
(b) When arbitrage operations were suspended.
(c) When Warren Buffet spoke out against Long-Term.
(d) When the Asian market collapsed.

4. Who gains from working with hedge funds?
(a) Women.
(b) The government.
(c) Impoverished countries.
(d) Managers.

5. What was the credit limit on hedge funds?
(a) $50 million.
(b) $100 million.
(c) $1 billion.
(d) There wasn't one.

Short Answer Questions

1. What was the climate at Long-Term during the Russian financial crisis?

2. Who was withdrawing from the hedge fund markets?

3. In August 1998, how far down was Long-Term for the year-to-date?

4. What models did Long-Term follow?

5. What did a dealer from J.F. Eckstein & Co. want from Meriwether in 1979?

(see the answer key)

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