1. It has been argued that inaccurate measures of credit risk contributed to the recent financial crisis. Using suitable examples, explain what can be done to develop superior measures of credit risk, such that events such as those of 2008 are not repeated. (900 words)
2. Would someone be so kind to upload the solutions to this problem?
3. Discuss the complications that may arise in calculating credit risk in the presence of significant liquidity risk. (600 words)