Question: 1_When building a portfolio, what are the two basic components of an investors investment decision? Risk and return Buying and selling Cash flows and capital

1_When building a portfolio, what are the two basic components of an investors investment decision?

Risk and return

Buying and selling

Cash flows and capital gains

Asset allocation and security selection

2_The most important decision when building a diversified stock portfolio is

individual security selection.

asset allocation.

minimization of risk.

maximization of expected return.

3_According to the general consensus of investment managers, what percentage of a typical investors portfolio should be invested in international markets?

Five (5) to ten (10)

Ten (10) to twenty (20)

Twenty (20) to thirty (30)

Thirty (30) to fifty (50)

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