Chapter 6 3.According to the information, the main support of LTCM is a sophisticated estimation system, which can provide credit and risk estimation, so that after nding a breakthrough in market pricing, it can make prots with leverage. But this leverage has not always been positive, so aer Russia defaulted, this leverage ac_tgale_c_rushed itself. As for the people who operate this system, they abused the system to make it surpass its original function, and at the same time ignored this hidden crisis, for example, they did not care about the weakening of liquidity. S__Q their biggest problem is not considering the possibility of future failure before the problem knocks them down. 5. A Since the main variables of SRY are the ratio of stocks and bonds and the standard deviation of long-term yields, changing the standard deviation will definitelyjlaye an impact on the forecast results. The specic impact depends on the magnitude of the change in standard deviation. C Compared with the cases of X=1, 1.5, and 2, the backtest quality of 1.5 is the best. Because its standard deviation is the lowest, the Sharpe ratio is the highest, and the turnover rate is also good