With Asymmetric Information, a Bank Can Earn Lower Profits on a High

With asymmetric information, a bank can earn lower profits on a high risk borrower even though it charges the borrower a higher interest rate.The reason is

A) the high risk borrower has a greater propensity to switch to riskier projects when charged with higher rate
B) the bank's break-even interest rate on a high risk borrower is higher
C) competition forces the bank to charge a higher rate
D) all of the above
E) a and b only