Print
Word
PDF
|
| Name: _________________________ | Period: ___________________ |
This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. What did the Black-Scholes model believe was constant?
(a) Income.
(b) Growth.
(c) Meriwether's enthusiasm.
(d) Volatility.
2. What was the typical scenario for bond investors in 1994?
(a) Substantial gains.
(b) Few invested in bonds.
(c) Loss.
(d) Minimal gains.
3. In 1996, Long-Term was four times as large as what?
(a) The largest hedge fund.
(b) The U.S. Treasury.
(c) The Mexican Treasury.
(d) A small European country.
4. Why did Long-Term trade in Italy?
(a) The opportunity for big returns.
(b) The tax write-off opportunity.
(c) Meriwether was Italian.
(d) It was a safe market.
5. How much of the face value of a bond do buyers typically pay?
(a) 25%.
(b) 10%.
(c) 1%.
(d) 15%.
Short Answer Questions
1. What did Long-Term do when IOs started to fall?
2. What group did Meriwether found in 1977?
3. In 1996, how much did Long-Term have in assets?
4. What did the banks and investors use to estimate Long-Term's assets?
5. What did Rosenfeld and his friend develop?
Short Essay Questions
1. When additional investors returned to the Italian market, what did Long-Term do?
2. What surprise happened when Meriwether was trading Treasury Bill futures?
3. Why did bonds lose their value in the 1970's?
4. By the time Long-Term had been in business for two years, how did it compare to other old Wall Street companies?
5. What did Long-Term do to limit risk in bond trading?
6. What was Long-Term's objective in seeking out a bank to finance their credit?
7. In 1996, which significant companies did Long-Term surpass in terms of assets?
8. Why was it difficult to know the exact amount of assets Long-Term held?
9. Why did Meriwether begin recruiting employees he had worked with at the Arbitrage Group?
10. What was Meriwether's business model for Long-Term?
|
This section contains 508 words (approx. 2 pages at 300 words per page) |
|
