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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. What did Meriwether warn his investors against in 1994?

2. How much money did Long-Term earn in 1996?

3. In 1996, what was the second bank Long-Term approached about financing their credit?

4. What type of government paper was bought in Italy?

5. How much did banks and investors make in conjunction with Long-Term?

Short Essay Questions

1. When additional investors returned to the Italian market, what did Long-Term do?

2. What methods did Black and Scholes use to predict the changes that would take place in the market?

3. Why did hedge funds make money for managers?

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

5. How would a loan from a major bank help the partners at Long-Term make money?

6. Why was it difficult to know the exact amount of assets Long-Term held?

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

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

9. When investing in Italy, what did Long-Term avoid telling their customers?

10. In 1996, which significant companies did Long-Term surpass in terms of assets?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Occasionally, Long-Term encountered a trading regulation that was designed to prevent them from over-leveraging. In many of these situations, they would find a way to sidestep the regulation. Write an essay that takes a stand on this type of behavior and identify at least three examples from the text in your work.

Essay Topic 2

As Long-Term became more and more successful, many banks and investment firms were eager to work with the company. Examine the various ways banks and investment firms offered advantages to Long-Term and why.

Essay Topic 3

Meriwether enjoyed building strong teams to work with. Write a brief essay examining the qualities he sought out in his team members.

(see the answer keys)

This section contains 518 words (approx. 2 pages at 300 words per page) View a FREE sample