1. A risky portfolio has an expected rate of return of 15% and a standard deviation of 20%. The Treasury bill rate is 4%. What is the Sharpe (reward-to-volatility) ratio for the portfolio?
2. Identify what problems or shortcomings Honda has that you will make strategic recommendations with actionable steps?
3. If a manager evaluated on the basis of annual net income, the may be led to do things to the firm. What are these things? Next, discuss why this statement is true.