For a risk-averse person, an indifference curve representing the different combinations of variance of return and expected return will be downward sloping and convex to the variance of return axis.

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For a risk-averse person, an indifference curve representing the different combinations of variance of return and expected return will be upward sloping, indicating that to accept a higher level of risk (variance), they require a higher expected return. The curve is typically convex to the origin, reflecting increasing marginal disutility of risk.

For a Risk-Averse Person, an Indifference Curve Representing the Different