Distressed Investing

You are a new hire at the prestiges investment firm of Fredericks and Fredericks, Inc. The firm, known as, and referred to as “2 Freds”, has managed money for many of the West Coast’s most prominent families, and prides itself on its analytical ability, and historical performance. Since it’s inception 2 Freds has not lost to its balanced benchmark defined as 40% Bonds and 60% Equity.

please answer the whole questions.