$1$a$.).$ Charley Designer Shirt Company is a hypothetical multinational firm based in the United States. Charley sells high$-$end shirts to retail clothing stores in the United States and France. The retail clothing stores typically pay Charley $20\%$ of the purchase price in cash at the time of purchase and promise to pay the balance after $60$ days. The U$.$S$.$ sales are denominated in U$.$S$.$ dollars; the French sales are denominated in euros $($the currency used in France$).$All the shirts that Charley sells are manufactured in Indonesia. The shirt$-$making facilities are not owned by Charley; instead, Charley contracts with various shirt makers for the production and delivery of the shirts. All of Charleys shirt$-$purchase contracts are denominated in the Indonesian currency, the rupiah.Based on this short description, what risks are faced by Charley?$*$ Credit risk and exchange risk$*$ Credit risk and liquidity risk$*$ Interest rate risk and exchange rate risk$*$ Interest rate risk and liquidity risk$1$b$.)$Why is it difficult, if not impossible, for us as individual investors to use our ability to analyze publicly available financial data and economic trends to identify individual winning and losing stock investments?$*$ Legal restrictions prohibit sophisticated individuals from using their financial analysis of publicly available data to pick winning and losing stocks.$*$ Stock market prices react to new information too quickly.$*$ In the United States, share prices are set daily by officials of the Securities and Exchange Commission $($SEC$).*$ Trading costs are just too high, making it unprofitable to buy different shares of stock$\mathrm{.}1$c$.)$hich ONE of the following is the correct$$description of a HEDGE FUND?$*$ The invested funds are spread among different investments based on sophisticated mathematical rules deduced using statistical tests to identify relations among different market prices.$*$ The invested funds are spread among a few large investments in private company shares to buy enough shares to significantly influence the operations of the private company or$,$ in some cases, to buy a controlling interest in that company.$*$ The invested funds are spread among many different investments in individual publicly traded company shares based on a simple pre$-$set rule such as the $500$ largest companies in the United States.$*$ The invested funds are spread among many different investments in individual publicly traded company shares based on detailed analysis by a team of financial analysts$\mathrm{.}1$D$.)$The chief financial officer $($CFO$)$ of Tabiona Company is considering how some recently purchased investment securities should be classified for financial reporting purposes. The securities were purchased with the intent of selling the securities to realize gains arising from short$-$term changes in price.How should these investment securities be classified?$*$ Held$-$to$-$maturity securities$*$ Trading securities$*$ Consolidated securities$*$ Equity method securities$*$ Available$-$for$-$sale securities