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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 1996, Long-Term was four times as large as what?

2. How much did Long-Term plan to take from its profits?

3. Where was David W. Mullins working when Meriwether hired him?

4. In order for Meriwether's Treasury futures investment to work, what did he need market prices to do?

5. Where was the Long-Term Capital Portfolio stored?

Short Essay Questions

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

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

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

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

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

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

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

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

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

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

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

Basing your answer on the height of Long-Term's career, compare and contrast several of the companies on Wall Street with Long-Term, citing examples from the text.

Essay Topic 3

In the late 1970's, the financial climate was changing due to technology. Examine the changes this brought about in the financial market and how these changes directly affected Meriwether.

(see the answer keys)

This section contains 524 words (approx. 2 pages at 300 words per page) View a FREE sample