We discussed several macroeconomic indicators and their role in illustrating conditions in financial markets. One important indicator in finance is the implied volatility index $($VIX$)$ which the Chicago Board Options Exchange $($CBOE$)$ publishes data on$.$ Which of the following statements is most TRUE regarding the VIX?

A$.$ As the VIX rises, ceteris paribus $($everything else constant$),$ it implies that the price level on the S&P $500$ index is also rising.

B$.$ As the VIX rises, ceteris paribus $($everything else constant$),$ it reflects that investors are becoming more bearish in the market.

C$.$ As the VIX rises, ceteris paribus $($everything else constant$),$ it reflects that investors are becoming more confident and optimistic in the market.

D$.$ As the VIX rises, ceteris paribus $($everything else constant$),$ it reflects that there are more diversification opportunities available to investors.

E$.$ The VIX is an indicator of idiosyncratic risk for the banking industry.