A Set of Convex Indifference Curves Indicates Which One of the Following

Multiple Choice

A set of convex indifference curves indicates which one of the following about an investor's tradeoff between risk and expected returns?

A) An investor requires an increasingly larger increment of expected return for each additional unit of risk incurred.
B) An investor derives less additional satisfaction from each extra dollar earned.
C) Portfolios on two separate indifference curves would be equally attractive to the investor.
D) Risk averse investors require higher expected returns.