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This quiz consists of 5 multiple choice and 5 short answer questions through Alternatives to Common Stock.

Multiple Choice Questions

1. Some Berkshire insurance subsidiaries used _______ with its greater returns than to use Treasury Bils.
(a) Investment games.
(b) Arbitrage.
(c) Mediation.
(d) Risky stocks.

2. Buffett disliked _________ because of its leverage, according to the book.
(a) Banking.
(b) Accounting.
(c) Savings bonds.
(d) Stocks.

3. How much profit did the new holding of Berkshire make for Buffett and Munger?
(a) $100M.
(b) $150M.
(c) $250M.
(d) $500M.

4. Buffett criticizes __________ market theory as be does not believe it to be a truth.
(a) Erasing.
(b) Eradicant.
(c) Effective.
(d) Efficient.

5. Many stocks had a _______, like Coca-Cola, but none have the same market share.
(a) Risk.
(b) Price.
(c) Beta.
(d) Manner.

Short Answer Questions

1. Which business did Munger and Buffett decide to close, despite their best efforts?

2. What did a bondholder have to do with their bond if they decided to cash it in early?

3. The long-term economic goal was to maximize per-share average annual rate of gain at ______% of the intrinsic business value.

4. Below investment grade bonds are generally called ________, since they are able to be transformed.

5. Berkshire invested in companies with excellent economic prospects and outstanding __________.

(see the answer key)

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