Practice: Market History
Twenty-six scored problems on the crises of the Market History module: margin and leverage, runs and liquidity, real returns under inflation and deflation, bond prices when rates rise, balanced portfolios in bad years, the math of drawdowns and recoveries, valuation in a bubble, mortgage securities, and the order and mechanics of the big episodes.
What you'll do
This set works through the Crises and Recoveries module, from the Panic of 1907 to the 2022 decline. You'll work out what a fall does to a margin account and a leveraged fund, find a run's cash shortfall, compute real returns in the 1970s and real rates under deflation, price a bond after rates jump, test a 60/40 portfolio in 2008 and 2022, find the gain needed to recover a drawdown, compare regular investing with selling at the bottom, check what a bubble-era price assumes, follow losses through a mortgage pool, and match mechanisms to crises. Each answer comes with the working, and your score appears as you go. Nothing is recorded outside this browser.
This draws on
- The Panic of 1907
- The 1929 Crash and the Great Depression
- Inflation in the 1970s
- The 1987 Crash
- Japan's Bubble and Lost Decades
- The 1994 Bond Market Rout
- LTCM and the 1998 Crisis
- The Dot-Com Bubble
- The 2008 Financial Crisis
- The 2010 Flash Crash
- The 2020 Pandemic Crash
- The 2022 Stock and Bond Decline
- What the Crises Have in Common
Work through the problems in order and check each answer once you've committed to it. The score counts your first try. The figures are hypothetical unless a problem refers to a specific historical episode, in which case they come from the lessons in this module.
The problems in this practice set are for members
Inside, each with a worked answer: Leverage (4 problems); Runs and liquidity (3 problems); Inflation and deflation (3 problems); Bonds and balanced portfolios (4 problems); Drawdowns and recoveries (5 problems); Bubbles, mortgages, and mechanics (7 problems).
Membership opens every lesson in the curriculum, the capstone projects, the interactive tools, and the members-only channels in the Hyperion Entities Discord. The first lesson of every module stays free.