Which of the following was the key contributory risk factor to the problems at LTCM in the summer of 1998?

Which of the following was the key contributory risk factor to the problems at LTCM in the summer of 1998?

I. Model Risk

II. Lack of Transparency

III. Breakdown of Historical Correlations

IV. Over Regulation by Federal Regulators
A . I and III only
B . III only
C . III and IV only
D . All of these were key elements of the problems at LTCM

View Answer

Answer: B