1_When building a portfolio, what are the two basic components of an investor's 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 investor's 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)