1.

The investment process includes two major decisions that investors should consider:

		Asset allocation and security selection.
		Security selection and agency analysis.
		Security selection and active management.
		Asset allocation and active management.

2.

1. Investment banks help firms issue new securities to the public in the _____ markets. Later the public can buy and sell these same securities in the _____ markets.

   		secondary, stock
   		primary, secondary
   		real, financial
   		stock, primary