Internationalizing the Domestic Portfolio Classic portfolio theory assumes a typical investor is risk-averse. ■ This means an investor is willing to accept some risk but is not willing to bear unnecessary risk. The typical investor is therefore in search of a portfolio that maximizes expected portfolio return per unit of expected portfolio risk 制计爱价货易大考Internationalizing the Domestic Portfolio „ Classic portfolio theory assumes a typical investor is risk-averse. „ This means an investor is willing to accept some risk but is not willing to bear unnecessary risk. „ The typical investor is therefore in search of a portfolio that maximizes expected portfolio return per unit of expected portfolio risk