Asset A has an expected return of 10% and a standard deviation of 7%. Asset B has an expected return of 8% and standard deviation of 12%. Assume that the returns of the two assets are uncorrelated. A rational risk averse investor would

A. Never invest his entire wealth in asset B

B. Invest his entire wealth in asset A if he is very risk averse.

C. Invest his entire wealth in asset B, since asset A is dominated

D. Always invest in a balanced portfolio containing 50% of asset A and 50% asset B, provided that the correlation coefficient is equal to one.