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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. How much money did Meriwether need to start Long-Term?

2. What were the models Long-Term used unable to predict?

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

4. In 1996, what was Long-Term seeking from the bank that would handle their credit?

5. In 1996, who did Long-Term first approach to handle their credit?

Short Essay Questions

1. On what did Long-Term base the claim that it was difficult to lose money with them?

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

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

4. What was Meriwether's business model for Long-Term?

5. What surprise happened when Meriwether was trading Treasury Bill futures?

6. Why did hedge funds make money for managers?

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

8. Why did bonds lose their value in the 1970's?

9. When Meriwether was building his team at the Arbitrage Group, what qualities did he look for?

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

The academic model Long-Term used for investing proved impressive on many occasions.

1) What were the principles behind the Value-at-Risk models?

2) What were the problems with these models?

3) How did these models impact the investments placed by Long-Term?

Essay Topic 2

When Meriwether set up Long-Term, he had to take many steps to create the company. Write an essay examining the process Meriwether went through to create Long-Term.

Essay Topic 3

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.

(see the answer keys)

This section contains 516 words (approx. 2 pages at 300 words per page) View a FREE sample