The near collapse of Long Term Capital Management was caused by
A) the high management fees charged by the fund's two Nobel Prize winners.
B) the fund's high leverage ratio of 20 to 1.
C) a sharp decrease in the spread between corporate bonds and Treasury bonds.
D) a sharp increase in the spread between corporate bonds and Treasury bonds.
E) the fund's shift away from a market-neutral investment strategy.
D
You might also like to view...
When tracing a sample of shipping documents from throughout the year to the details of the sales invoices and to the sales journal and customers' accounts receivable subsidiary ledger, the auditor is testing the ________ assertion.
A. cutoff B. classification C. completeness D. existence
Which of the following journal entries would probably be made if the modified cash basis of accounting for warranties is in use for a sale made in 2016?
A) ?2016Warranty Expense XXEstimated Liability under Warranties XX B) ?2017Estimated Liability under Warranties XXCash XX C) ?2016Cash XXSales XXUnearned Warranty Revenue XX D) ?2017Warranty Expense XXCash XX
Pamela, without authorization, eavesdrops on a conversation between Mark and Elise. Pamela has not committed the tort of intrusion unless she makes the conversation public
a. True b. False Indicate whether the statement is true or false
Rosalinda's Steak House purchases 70 T-bone steaks every Friday-including last Friday. Last Friday's order was an example of a
A. new-task buy. B. modified rebuy. C. simplified buy. D. straight buy. E. straight rebuy.