# [Series 65] 41, Modern Portfolio Theory

Page: https://stenobird.com/podcast/open-exam-prep-7140559/series-65-41-modern-portfolio-theory
Text version: https://stenobird.com/podcast/open-exam-prep-7140559/series-65-41-modern-portfolio-theory.md
Podcast: [Open Exam Prep](https://stenobird.com/podcast/open-exam-prep-7140559)
Published: 2026-05-04T01:01:53+00:00
Episode link: https://open-exam-prep.captivate.fm/episode/series-65-41-modern-portfolio-theory
Audio file: https://episodes.captivate.fm/episode/46ace84a-4827-41ac-ae72-53bb7583f550.mp3
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JSON: https://stenobird.com/v1/public/podcasts/open-exam-prep-7140559/episodes/series-65-41-modern-portfolio-theory
Duration seconds: 216

## Resource

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Modern Portfolio Theory (MPT) assumes investors are risk-averse and seek to maximize returns for a given level of risk. - The efficient frontier represents a set of optimal portfolios offering the highest return for each level of risk. - Diversification can reduce unsystematic (company-specific) risk but not systematic (market) risk. - The key to effective diversification is combining assets with low or negative correlation. - For diversified portfolios, beta is the correct risk measure; for non-diversified portfolios, use standard deviation. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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## Transcript

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