he separation principle states that an investor will Multiple Choice never choose to invest in the riskless asset because the expected return on the riskless asset is lower over time. select a portfolio based solely on his/her desired rate of return while ignoring the associated risks of their selection. randomly select any efficient portfolio. choose any efficient portfolio and invest some amount in the riskless asset to generate the expected return. invest only in the riskless asset and tangency portfolio, choosing the weights of each based on his/her individual risk tolerance