Which of These Makes the Following a True Statement? Diversification

Which of these makes the following a true statement? Diversification resulting from a merger can:

A) make the debt of the merged firm more risky, thus lowering the cost of capital.
B) make the debt of the merged firm less risky, thus lowering the cost of capital.
C) make the debt of the merged firm less risky, thus raising the cost of capital.
D) None of these make the statement true.