Suppose that the risk premium on stocks and other securities did in fact rise with total risk

Question:

Suppose that the risk premium on and other securities did in fact rise with total risk (that is, the variability of returns) rather than just market risk. Explain how investors could exploit the situation to create portfolios with high expected rates of return but low levels of risk.
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...