Choices to this question are:
a. withdrawing money from a retirement account.
b. investing in a variety of types of investments to minimize risk. 
c. contacting a stock broker to invest you money. 
d. buying and selling a variety of stock.
Diversifying means buying and selling a variety of stock. To diversify is to  produce or sell more kinds of products in order to increase the variety of goods.
The answer is letter d.