An investor currently holds stock in Giggle Corporation and is considering buying stock in either Macrosoft Corporation or Faceplant Corporation. All three stocks have the same expected return and risk. The correlation between Giggle & Macrosoft is 0.25. The correlation between Giggle and Faceplant is -0.10. Portfolio risk is expected to:

a)Increase regardless of whether she buys Macrosoft or Faceplant since they are equally risky

b)Decrease more when the investor buys Macrosoft

c)Decline more when the investor buys Faceplant

d)Stay the same regardless of whether Macrosoft or Faceplant is added since all three have the same risk