1. Political stability is a major factor of which one of the following?

1. business risk
2. inflation risk
3. country risk
4. exchange rate risk 2. Regarding short selling: which one of the following statements is incorrect?
   1. Dividends on any stock sold short must be covered by the short seller.
   2. There is no time limit on a short sale.
   3. Short sales are permitted only on falling prices or a downtick.
   4. Short sellers must put up margin as if they had gone long.