Q) One of your portfolio managers, Mort Van Sleet, has recently complained that by measuring risk-adjusted returns using the Sharpe ratio, he is placed at an unfair disadvantage. He has stated flatly...

Q) One of your portfolio managers, Mort Van Sleet, has recently complained that by measuring risk-adjusted returns using the Sharpe ratio, he is placed at an unfair disadvantage. He has stated flatly that the standard deviation of hisportfolio returns is artificially inflated. Explain how this can be true, and offerand explain a potential solution to the problem.
Q) List and discuss three methods for managing credit risk.