George has $7,000 to invest in a mutual fund. The expected return on mutual fund A is 15 percent and the expected return on mutual fund B is 10 percent. Should George pick mutual fund A or fundB?

A. Clearly, he should pick mutual fund A because it has a higher expected return.

B. Since individuals are riskaverse, he should pick fund B because its lower expected return implies lower risk.

C. If George isyoung, he should pick mutual fund A because it has a higher expectedreturn, regardless of risk.

D. There is not enough information to make the determination because the decision also depends on the variability of the expected return andGeorge's attitude toward risk.