The Separation Principle States That an Investor Will

The separation principle states that an investor will:

A) choose any efficient portfolio and invest some amount in the riskless asset to generate the expected return.
B) invest only in the riskless asset and tangency portfolio choosing the weights based on individual risk tolerance.
C) never choose to invest in the riskless asset because the expected return on the riskless asset is lower over time.
D) choose an efficient portfolio based on individual risk tolerance or utility.
E) All of the above.