The Michelson Bank of Stetson,wants to Protect Itself from Risk

Multiple Choice

The Michelson Bank of Stetson,wants to protect itself from risk.It decides to make loans in Florida,Georgia,Texas,and Oklahoma as well as invest in municipal bonds from California and Oregon.What defense against risk is this bank making?

A) Portfolio diversification
B) Geographic diversification
C) Quality management
D) Increasing owners' capital
E) None of the options is correct.