Asset A has an expected return of 15% and a return standard deviation of 14%. Asset B has an expected return of 20% and a return standard deviation of 35%. The return on the risk-free asset is 7%. If a risk-averse investor can only pick one risky asset to hold in conjunction with the risk-free asset, which one would he pick?

		He is indifferent between asset A and asset B.
		The answer cannot be determined from the data given.
		asset A
		asset B