Exam 8006 Topic 7 Question 79 Discussion

Actual exam question for PRMIA's 8006 exam
Question #: 79
Topic #: 7
For a pair of correlated assets, the achievable portfolio standard deviation will be the lowest when the correlation is:

Suggested Answer: C Vote an answer

Explanation
The lowest achievable standard deviation will be lowest when the assets are perfectly negatively correlated, ie when correlation = -1. In the case of the above choices, the lowest correlation is -0.33, which is the correct choice.

by Bernard at May 14, 2026, 09:04 PM

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