read the book entitled “When Genius Failed: The Rise and Fall of Long-Term Capital Management” by Roger Lowenstein

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or this assignment, read the book entitled “When Genius Failed: The Rise and Fall of Long-Term Capital Management” by Roger Lowenstein.

Your responses to the following questions:

  1. Compare the merits and limitations of a strategy mentioned in the book that was used by LTCM.
  2. Is there anything that LTCM could have done in order to avoid their disastrous end?
  3. How do you evaluate the course of actions taken by the regulator in trying to solve the crisis?
  4. After reading the book, what’s your opinion on the current quantitative models used in finance?

Please refer to the book in your answers and try to be as specific as you can. Please do not write more than one paragraph per question.

The assignment will be grade based on originality, depth of the analysis, and how your answers use the book as a reference.