Financial Risk Manager Part 1
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The collapse of Long Term Capital Management (LTCM) is a classic risk management case study. Which of the following statements about risk management at LTCM is correct?
A
LTCM had no active risk reporting.
B
At LTCM, 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