Why Are the Indifference Curves of Typical Investors Assumed to Slope

Multiple Choice

Why are the indifference curves of typical investors assumed to slope upward and to the right?

A) As the standard deviation of portfolio returns increases, risk averse investors require lower expected returns to maintain their level of satisfaction.
B) As the returns of a portfolio increase, risk averse investors require the same not more risk.
C) As the risk of a portfolio increases with the rate of return, risk averse investors will move to a higher indifference curve.
D) As the standard deviation of portfolio returns increases, risk averse investors require higher expected returns to maintain their level of satisfaction.