f$.$ Your client is shocked at how much risk Blandy stock has and would like to reduce the level of risk. You suggest that the client sell $25\%$ of the Blandy stock and create a portfolio with $75\%$ Blandy stock and $25\%$ in the high$-$risk Gourmange stock. How do you suppose the client will react to replacing some of the Blandy stock with highrisk stock? Show the client what the proposed portfolio return would have been in each year of the sample. Then calculate the average return and standard deviation using the portfolio's annual returns. How does the risk of this two$-$stock portfolio compare with the risk of the individual stocks if they were held in isolation?