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In the context of the collapse of Long-Term Capital Management (LTCM), which statement best illustrates the firm's approach to risk management?
A
LTCM had no active risk reporting.
B
LTCM's stress testing became a risk management department exercise that had little influence on the firm's strategy.
C
LTCM's use of high leverage is evidence of poor risk management.
D
LTCM failed to account properly for the illiquidity of its largest positions in its risk calculations.
