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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 Long-Term do when IOs started to fall?

2. What type of funds gained popularity in the 1990's?

3. What did Long-Term do with off-the-run bonds?

4. In 1996, Long-Term had achieved thirty times its what?

5. What did Meriwether warn his investors against in 1994?

Short Essay Questions

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

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

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

4. Why was Meriwether made a partner at Salomon?

5. What was Long-Term's objective in seeking out a bank to finance their credit?

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

7. Why were convergence trades the safest trades made by Long-Term?

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

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

10. Why did Black and Scholes believe that price changes were random?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Write a brief essay supporting or refuting the following statement, citing examples from the text: Meriwether fully expected to continue making substantial returns with Long-Term's investment model.

Essay Topic 2

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 3

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

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This section contains 492 words (approx. 2 pages at 300 words per page) View a FREE sample