View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Dear Investors.

Multiple Choice Questions

1. How long did Long-Term expect their investors to commit?
(a) 6 months.
(b) 1 year.
(c) 3 years.
(d) 3 months.

2. What notable invention changed the face of trading in the 1970's?
(a) The scientific calculator.
(b) The computer.
(c) The cell phone.
(d) The video camera.

3. What did Long-Term do when IOs started to fall?
(a) Lie to investors.
(b) Sell their shares.
(c) Explain the situation to investors.
(d) Buy them up.

4. Who typically invested in hedge funds?
(a) Foreign banks.
(b) The general population.
(c) The Federal Reserve.
(d) A club of exclusive investors.

5. In 1994, what market did Long-Term begin to express an interest in?
(a) Local.
(b) Chinese.
(c) International.
(d) Chicago.

Short Answer Questions

1. How much of the face value of a bond do buyers typically pay?

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

3. What did Black and Scholes use to calculate market change?

4. What did the Black-Scholes model believe was constant?

5. Who gains from working with hedge funds?

(see the answer key)

This section contains 166 words (approx. 1 page at 300 words per page) View a FREE sample