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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. In 1994, what market did Long-Term begin to express an interest in?

2. In 1993, what was happening more than usual in America?

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

4. What did the traders accept about the financial models they used?

5. Who developed the Black-Scholes model?

Short Essay Questions

1. What did Long-Term do to limit risk in bond trading?

2. When did Meriwether begin making sales calls for Long-Term?

3. What was Meriwether's group at Salomon given the authority to do?

4. Although Long-Term was performing so well by 1996, how many Americans knew of the fund's existence?

5. Why was the investment in Italy a risky one for Long-Term to make?

6. By the time Long-Term had been in business for two years, how did it compare to other old Wall Street companies?

7. Why did hedge funds make money for managers?

8. What were the legal limits on hedge fund investors?

9. Why did Meriwether begin recruiting employees he had worked with at the Arbitrage Group?

10. Why was Meriwether made a partner at Salomon?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

The international market provided Long-Term with a substantial opportunity for success. Write an essay examining Long-Term's initial involvement in the international market and the results of this investment.

Essay Topic 2

Those involved at the top levels of Long-Term were given respect, money and opportunity. Write a brief essay analyzing some of the advantages a career at Long-Term gave many of the partners, citing examples from the text.

Essay Topic 3

Write a brief essay supporting or refuting the following statement, citing examples from the text: The irresponsible management of Long-Term by the partners led to its downfall.

(see the answer keys)

This section contains 531 words (approx. 2 pages at 300 words per page) View a FREE sample