According to Tobin's Separation Property, Portfolio Choice Can Be Separated

According to Tobin's separation property, portfolio choice can be separated into two independent tasks consisting of ________ and ________.

A) identifying all investor imposed constraints; identifying the set of securities that conform to the investor's constraints and offer the best risk-return trade-offs
B) identifying the investor's degree of risk aversion; choosing securities from industry groups that are consistent with the investor's risk profile
C) identifying the optimal risky portfolio; constructing a complete portfolio from T-bills and the optimal risky portfolio based on the investor's degree of risk aversion
D) choosing which risky assets an investor prefers according to the investor's risk-aversion level; minimizing the CAL by lending at the risk-free rate