Long-Term Capital Management (LTCM) Was a U

Multiple Choice

Long-Term Capital Management (LTCM) was a U.S. hedge fund which used trading strategies combined with high leverage. Despite initial enormous profits, it failed spectacularly in 1998. What most likely led to this failure? Select all that apply.

A) The uncontrolled use of high leverage.
B) The Asian Financial crisis in 1997.
C) The Russian Financial crisis in 1998.
D) The incompetent board of directors.