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: - How diversification reduces unsystematic risk without eliminating market risk. - How correlation coefficients range from -1.0 to +1.0 and affect risk reduction. - Why any correlation coefficient below +1.0 provides diversification benefits. - How calendar and corridor rebalancing strategies restore target asset allocation. - How investment adviser representatives evaluate overall portfolio risk under fiduciary standards. OpenExamPrep provides independent study tools for the Series 66 exam. Practice questions and study guides are available at https://open-exam-prep.com/practice/series66 and video resources at https://www.youtube.com/@Open-exam-prep . Sources checked: September 14, 2026 https://www.nasaa.org/wp-content/uploads/2023/02/Series-66-Outline-June-2023.pdf https://www.finra.org/registration-exams-ce/qualification-exams/series66