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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. Who ran the London office for Long-Term?
(a) Buffet.
(b) Mullins.
(c) Meriwether.
(d) Haghani.
2. Who typically invested in hedge funds?
(a) A club of exclusive investors.
(b) The Federal Reserve.
(c) The general population.
(d) Foreign banks.
3. What happened to Meriwether's Treasury bill deal before it was resolved?
(a) It remained steady.
(b) Huge gains.
(c) Big losses.
(d) It fell apart.
4. How much money did Rosenfeld's business bring in?
(a) Hundreds of thousands.
(b) Five million.
(c) Two million.
(d) A couple thousand.
5. In 1996, Long-Term was two and a half times larger than what company?
(a) Bank of America.
(b) Chase.
(c) Lehman Brothers.
(d) Fidelity Magellan.
Short Answer Questions
1. What did the Black-Scholes model believe was constant?
2. Why did Long-Term trade in Italy?
3. How was Meriwether's career affected following the Treasury bill deal?
4. What models did Long-Term follow?
5. What did Black and Scholes use to calculate market change?
Short Essay Questions
1. Why was Meriwether made a partner at Salomon?
2. By the time Long-Term had been in business for two years, how did it compare to other old Wall Street companies?
3. Why did Black and Scholes believe that price changes were random?
4. On what did Long-Term base the claim that it was difficult to lose money with them?
5. What was Long-Term's objective in seeking out a bank to finance their credit?
6. When Meriwether was building his team at the Arbitrage Group, what qualities did he look for?
7. What dictates whether or interest only securities rise or fall?
8. Why did Meriwether begin recruiting employees he had worked with at the Arbitrage Group?
9. Although Long-Term was performing so well by 1996, how many Americans knew of the fund's existence?
10. In 1996, which significant companies did Long-Term surpass in terms of assets?
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This section contains 538 words (approx. 2 pages at 300 words per page) |
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