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PMI PfMP Portfolio Management Professional (PfMP) Exam Practice Test

Demo: 74 questions
Total 495 questions

Portfolio Management Professional (PfMP) Questions and Answers

Question 1

Assume you are the portfolio manager for your training company. It decided to implement portfolio management in a major way to ensure it remained competitive in the changing market and could offer a variety of methods to deliver courses rather than only in a face-to-face setting. The company set up a Portfolio Management Group, and you are responsible for providing information on portfolio status and then providing information to those interested stakeholders about the Board's decisions. You want to make sure the reports meet stakeholder requirements. After performing a detailed communications requirements analysis, you found it interesting that stakeholders wanted information about:

Options:

A.

Portfolio infrastructure costs

B.

Goal achievement

C.

Benefit realization

D.

Changes in the roadmap

Question 2

Due to market technological changes, your company got impacted and was urged to revise its portfolios. You are currently revising your portfolio to determine the required changes in the component mix. Which of the following options shows a clear path from the "as-is" to the "to-be" vision?

Options:

A.

Portfolio

B.

Portfolio Charter

C.

Portfolio Strategic Plan

D.

Portfolio Roadmap

Question 3

Chartering a portfolio is a major step in getting the needed authorizations to execute the portfolio. Your are currently developing the charter and considering the following inputs

Options:

A.

Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets

B.

Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets, Portfolio

C.

Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets, Portfolio Management Plan

D.

Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets, Portfolio Roadmap

Question 4

You are the manager for a major industrial portfolio aiming to rebuild the vintage building in your region. Having a tight schedule, a large number of stakeholders including the public, in addition to a strict budget, you know that you will be managing the portfolio closely and that the governance board and the stakeholders would want to check on the progress and status frequently. For this you started to develop a robust Portfolio management plan. Which of the following can be used when starting this process?

Options:

A.

Portfolio Management Plan, Portfolio Roadmap, Portfolio Charter, Enterprise Environmental Factors, Organizational Process Assets, Portfolio Process Assets

B.

Portfolio, Portfolio Roadmap, Portfolio Charter, Enterprise Environmental Factors, Organizational Process Assets, Portfolio Process Assets

C.

Portfolio Strategic Plan, Portfolio Roadmap, Portfolio Charter, Enterprise Environmental Factors, Organizational Process Assets, Portfolio Process Assets

D.

Portfolio Reports, Portfolio Roadmap, Portfolio Charter, Enterprise Environmental Factors, Organizational Process Assets, Portfolio Process Assets

Question 5

Risks are very important to manage in portfolio management and organizations can choose to embrace risks with the potential of high rewards. As a portfolio manager, planning and managing risks is important. Risks are categorized in order to ease the process. Which of the following are considered as risk categories that a portfolio manager can use?

Options:

A.

All of the options

B.

Performance Risk, Regulatory Risk

C.

Portfolio Component Risk, Market Risk

D.

Organizational Risk, Image and Public Relation Risk

Question 6

Optimizing the portfolio is a major recurring process that the portfolio manager performs throughout the portfolio life cycle in order to balance the mix of portfolio components. During this process, the portfolio manager uses a number of graphical analytical methods to help him ease the process. Which of the following is not a graphical analytical method used in this process?

Options:

A.

Pie Charts

B.

None of the options

C.

Risk vs. Return charts

D.

Histograms

Question 7

One of the ten underlying principles of portfolio management involves a strategic focus. Assume you are going to have a short meeting with your CEO tomorrow, and you want to succinctly describe it. You will tell the CEO it is important since it:

Options:

A.

Emphasizes the need for portfolio management to attain strategic objectives

B.

Provides a clear basis for decision making

C.

Includes processes and change initiatives to accomplish organizational strategies

D.

Balances conflicting demands

Question 8

As a portfolio manager and as part of your governance role, you use multiple tools and techniques to monitor and control the portfolio and maintain oversight. Which of the following can be used as tools and techniques in your role in oversight?

Options:

A.

Review meetings, Elicitation techniques, Integration Management

B.

Review meetings, Elicitation techniques

C.

Review meetings, Elicitation techniques, Scenario Analysis

D.

Review meetings, Elicitation techniques, PMIS

Question 9

As part of the strategic alignment, you Evaluate organizational strategic goals and objectives using document reviews, interviewing, and other information gathering techniques in order to

Options:

A.

Understand the strategic priorities

B.

Create a basis for decision making

C.

Provide a guiding framework to operationalize the organizational strategic goals and objectives

D.

Create portfolio scenarios

Question 10

When it comes to change, one of your junior portfolio managers came to you requesting your help to deal with the overwhelming strategic changes. He wants your assistance in solving the issue of continuous changes in the organization's objectives. What should be your advice to him?

Options:

A.

Change is a normal thing when it comes to portfolios, and he should act upon each strategic change in a quick manner in order to re-align his portfolio

B.

Not all strategic changes impacting his portfolio need to be taken care of; he should prioritize the change and only accept the ones with high priorities

C.

Help him to align his portfolio and manage it correctly in order to decrease the number and scale of changes

D.

Inform him that this is abnormal and that he should re-do the planning for his portfolio; even if it takes time and resources, but it will help him a lot for the rest of the portfolio life cycle

Question 11

You are the manager for a governmental portfolio aiming to restructure the roads in your country. Having a tight schedule, a large number of stakeholders including the public, in addition to a strict budgeting framework, you know that you will be managing the performance closely and that the governance board and the stakeholders would want to check on the progress and performance frequently. For this you are developing a robust performance management plan. What can you use to help you start developing this plan?

Options:

A.

Portfolio Management Plan, Organizational Process Assets, Portfolio Process Assets, Portfolio

B.

Portfolio Management Plan, Organizational Process Assets, Portfolio Process Assets, Enterprise Environmental Factors

C.

Portfolio Management Plan, Portfolio, Portfolio Reports, Enterprise Environmental Factors

D.

Portfolio Management Plan, Organizational Process Assets, Portfolio Reports, Enterprise Environmental Factors

Question 12

The interest, influence, and communication needs of business operational stakeholders who are looking to ensure alignment between portfolio components, while minimizing negative impact and maximizing positive benefits of all portfolio-managed changes to their business operations, relate to which type of stakeholders?

Options:

A.

Internal and External Stakeholders

B.

External Stakeholders

C.

Does not relate to stakeholders

D.

Internal Stakeholders

Question 13

The portfolio is undergoing and your are now in the monitoring and controlling phase. Two of your team members are arguing about what to use in order to determine decisions to be made with regards to the portfolio and its components. What should be your advice to them?

Options:

A.

They should use the elicitation techniques to get as much data as possible on the progress in order to be able to take decisions

B.

They should conduct review meetings on formal and scheduled basis

C.

They should conduct review meetings on scheduled and informal basis

D.

They should conduct review meetings on need basis

Question 14

Managing Strategic Change is an integral part of any portfolio in order to remain aligned with the strategic objectives. Your portfolio has undergone a major strategic change and you are currently determining if, when, what, and how of implementing the change in order to re-align the portfolio. What are you currently doing?

Options:

A.

Gap Analysis

B.

Readiness Assessment

C.

Change Analysis

Stakeholder Analysis

Question 15

The Monitor Portfolio Value process, while ongoing, has proved to be successful as you work to implement portfolio management. Within six months, you were able to show the usefulness of a simple scoring model to the Oversight Group, and they requested a more sophisticated approach in which weights could be assigned to criteria. This shows:

Options:

A.

An acceptance of portfolio management in the organization

B.

The usefulness of the portfolio roadmap

C.

A link between using scoring models and benefits analysis

D.

The importance of documenting lessons learned

Question 16

Based on the following table, assume you have been asked to perform a prioritization analysis based on these data. You realize risk is a major concern to the company, but you have some data available about potential benefits. These data show A and D have the greatest benefits. A and D are followed in terms of benefits by C, then B, then F, and finally E. Assume three of the programs and projects can be added to the portfolio when the Board meets. Your recommendation is to select:

Options:

A.

A, B, and C

B.

A, D, and C

C.

A, F, and C

D.

D, B, and C

Question 17

You are mid-way through your portfolio and you are approaching a major milestone where multiple components will be authorized for execution and implementation. For informed decision making, as a portfolio manager, you will be communicating reports that will be viewed and analyzed, and used as critical information for taking a decision for the authorization of components. After passing through the authorization process, multiple reports are generated and others are updated. What type of reports is generated from this process?

Options:

A.

Performance

B.

Resources

C.

Value

D.

Resources, Assets and governance decisions

Question 18

Assume you are putting together for the Portfolio Review Board several options for consideration of potential components and current components. You are using an approach with different probabilities to determine outcomes and EMV. Which of the following would you recommend realizing Components A and B are new, while C and D are in progress:

Options:

A.

Component A

B.

Component B

C.

Component C

D.

Component D

Question 19

While defining the portfolio, the portfolio manager uses a set of evaluation criteria in order to generate a list of portfolio components for optimization and balancing. Which of the following is not an evaluation criteria?

Options:

A.

Technology capabilities and capacities

B.

Costs

C.

Benefits, financial and non-financial

D.

Customer

Question 20

The Strategic Plan is an important document that is referenced throughout the portfolio life cycle. Which of the following is correct regarding the Strategic Plan purpose and focus?

Options:

A.

Articulates the options, preferences, and factors that will be considered in a specific portfolio

B.

Describes the approach and intent of management in identifying, approving, procuring, prioritizing, balancing, managing, and reporting a portfolio

C.

Identifies recipients for information associated with the portfolio management process

D.

Shows how and when the portfolio resources will be planned, balanced, and allocated to the portfolio components

Question 21

You are managing a portfolio for your company and are trying to balance the tasks that will be done internally based on the availability and the ones that will be outsourced. Managing supply and demand is a recurring activity in the portfolio life cycle and results in changes in resource utilization and resource efficiency. Which of the following techniques uses historical data to determine if resource requirements have been consistently underestimated?

Options:

A.

Lessons Learned Analysis

B.

Requirements Analysis

C.

Trend Analysis

D.

Value Scoring & Measurement

Question 22

Portfolio management processes are performed in an environment broader than a portfolio; therefore, an organization-level implementation team supported by executive management, a governing body, and portfolio managers join forces to implement organization-level portfolio management processes. After Defining roles and responsibilities for portfolio management process implementation, what should be the FIRST next step?

Options:

A.

Define and deploy detailed portfolio management processes and provide training to staff and stakeholders.

B.

Changing business processes

C.

Developing the Portfolio Strategic Plan

D.

Communicate the portfolio management implementation plan

Question 23

After a strategic change is managed and finalized, you as a portfolio manager, are expected to document changes to the portfolio components attributes. Which of the following is the document in which you document these changes?

Options:

A.

Portfolio Strategic Plan updates

B.

Portfolio updates

C.

Portfolio Management Plan updates

D.

Portfolio Process Assets updates

Question 24

As you work to determine which of four possible components to optimize the portfolio, assume you are using the internal rate of return as the key crite rion to make your recommendation. Only one new component can be added based on financial constraints. Each of the four potential components has benefits that support the strategic plan. Based on the following data, you recommend:

Options:

A.

Project A

B.

Program A

C.

Program B

D.

Project B

Question 25

Because of the ongoing and iterative nature of portfolio management, the processes in it are continually repeated as new components are added, and others are completed or terminated. Revisions are constant given complexity, risks, and the rate of change. As you work to optimize the portfolio, it is helpful to:

Options:

A.

Assign components to predefined categories

B.

Prepare a flowchart

C.

Organize ideas from stakeholders into logical groupings

D.

Perform a structure analysis of roles and responsibilities

Question 26

Stakeholders are an integral part of the portfolio. The portfolio manager will work with the stakeholders to plan, execute and eventually deliver and close the portfolio. While developing the performance management plan, the portfolio manager plans a series of sessions with key stakeholders to define Key Performance Indicators (KPIs). What are these sessions collectively referred to in a portfolio?

Options:

A.

Capability and Capacity Analysis

B.

Communication Methods

C.

Elicitation Techniques

D.

Communication Requirements Analysis

Question 27

While Optimizing your portfolio, you need to present to the governance board how your components will be ranked and balanced in a quantifiable way. How will you do this?

Options:

A.

Graphical analytical methods

B.

Value measurement and scoring

C.

Scenario Analysis

D.

Weighted ranking and scoring

Question 28

Your organization tried implementing portfolio management in the past, but even though it purchased a sophisticated automated software system for scoring and prioritization, it was not successful. After a year of complaints about the system, the executive team disbanded it. Now, resources are scarce, and some executives who were involved in the earlier attempt have left the company. The new CEO asked for a list of ongoing programs, projects, and operational work, and you could not provide one even though you direct the Project Management Office. He wants this inventory so it then can be used as the starting point to implement portfolio management. You and several others stated it did not work previously and do not believe it will work in the company. The CEO then hired a person to be the portfolio manager from outside who reports directly to him. The portfolio manager is emphasizing the importance of resources working on initiatives aligned with organizational strategy as part of the:

Options:

A.

Portfolio performance plan

B.

Portfolio roadmap

C.

Portfolio communications strategy

D.

Portfolio charter

Question 29

Establishing a portfolio management process starts with the development of the organizational portfolio management implementation plan. Which of the following helps while developing this plan?

Options:

A.

A proficient management team commitment to the effort

B.

All of the options

C.

A planned approach to change organizational behavior that includes a balance of strong leadership and management

D.

A planned approach for incrementally developing and implementing portfolio management processes

Question 30

One of your company's junior portfolio managers came to you for advice. He noticed while checking the roadmap that it does not include all the portfolio components. What should be your advice to him?

Options:

A.

The roadmap does not include all of the portfolio components, it is used as a high-level timeline

B.

The roadmap should include all of the portfolio components in order to correctly depict the different timelines and milestones

C.

Whether the roadmap includes all or a part of the portfolio components, is the decision of the portfolio manager

D.

Whether the roadmap includes all or a part of the portfolio components, is the decision of the portfolio sponsor

Question 31

Your company is currently on the verge of bankruptcy due to the lack of transparency within the organization; this alerted the CEO to take decisive actions and request that new reporting lines be established in order to be fully transparent. Following this, the portfolio structure has changed to cope with the new reporting lines. Where is this change reflected when it comes to portfolio documents?

Options:

A.

Portfolio Charter updates

B.

Portfolio Strategic Plan updates

C.

Portfolio Management Plan updates

D.

Portfolio Roadmap updates

Question 32

When initiating portfolio components and terminating other, you come up with updates to budget, funding and resources allocations. Where should these updates be recorded?

Options:

A.

Portfolio Process Assets updates

B.

Portfolio Management Plan updates

C.

Portfolio Reports

D.

Portfolio Updates

Question 33

In your portfolio some of the programs and projects that are being pursued will realize benefits throughout the program and project's life cycle, while others will not realize the benefits until the program or project is closed or years later. This means as the portfolio manager, you should:

Options:

A.

Prepare a portfolio benefit realization plan

B.

Set up KPIs to document progress in benefit realization

C.

Include portfolio benefits, results, and expected value in the portfolio strategic plan

D.

Distribute regular reports on benefit realization as part of the portfolio communications management strategy

Question 34

Multiple changes have been recommended and approved in your portfolio and the need for continuous optimization seems to never end. This is normal in a portfolio and optimizing the components mix and the use of resources is key to success. As a portfolio manager you will be re-visiting the Optimize Portfolio process countless times. Which of the following are considered outputs to this process?

Options:

A.

Roadmap update, Portfolio Management Plan update, Portfolio update, Portfolio Reports, Portfolio Process Assets update

B.

Roadmap update, Portfolio Strategic Plan update, Portfolio update, Portfolio Reports, Portfolio Process Assets update

C.

Roadmap update, Portfolio Management Plan update, Portfolio update, Portfolio Reports, Portfolio Organizational Process Assets update

D.

Roadmap update, Portfolio Management Plan update, Portfolio update, Portfolio Reports, Enterprise Environmental Factors update

Question 35

You are the portfolio manager for your military-vehicle service firm, which has been in existence for 20 years. You have a number of components under way, and others in the pipeline. One component involves a new gas detection system, which uses new technology. It has interfaces with two other existing components plus one in development. Recently, a simulator, used by three components, had to be shut down completely as it was leaking nitrogen and could lead to asphyxiation. You reported it immediately to the Hazardous Materials and Pipeline Safety Administration. This is an example of a:

Options:

A.

Execution risk

B.

Structural risk

C.

Critical incident

D.

Known unknown

Question 36

Embracing a management-by-projects culture means there tends to be far more projects to pursue than available resources. An approach then is required to guide decisions as to components in the portfolio. A best practice to follow is to:

Options:

A.

Set forth in the portfolio strategic plan a prioritization model

B.

Develop a portfolio roadmap

C.

Focus on both internal and external environmental changes

D.

Focus on sustainment of project benefits

Question 37

The Portfolio Management Plan is an important document that is referenced throughout the portfolio life cycle. Which of the following is correct regarding the Portfolio Management Plan purpose and focus?

Options:

A.

Identifies recipients for information associated with the portfolio management process

B.

Articulates the options, preferences, and factors that will be considered in a specific portfolio

C.

Describes the approach and intent of management in identifying, approving, procuring, prioritizing, balancing, managing, and reporting a portfolio

D.

Shows how and when the portfolio resources will be planned, balanced, and allocated to the portfolio components

Question 38

In a portfolio, data is an abundant asset, and managing the information aiming for a better decision making is critical. Which of the following help you with managing the portfolio value?

Options:

A.

PMIS, Elicitation techniques, Communication Requirements Analysis, Communications Methods

B.

Elicitation techniques, Capability & Capacity Analysis, PMIS

C.

Elicitation techniques, Communication Requirements Analysis, Stakeholder analysis

D.

Scenario Analysis, Capability & Capacity Analysis, Quantitative & Qualitative

Question 39

You are managing a large portfolio and know that you will need to constantly show the progress and status of the portfolio in meeting. For this you have developed a robust roadmap using BI tools. The Portfolio Roadmap is an important document that is referenced throughout the portfolio life cycle. Which of the following is correct regarding the Portfolio Roadmap purpose and focus?

Options:

A.

High-level prioritization mapping of the portfolio

B.

Corresponds to the means to the “to-be” vision

C.

Can be used to influence the portfolio’s success

D.

Forecasts how and when the portfolio will deliver value to the organization

Question 40

The company's management is not happy with the bared risk for the expected Portfolio value return and has reached a subject matter expert to try to re-align the risk level with the management expectations. The expert stated that it is preferable to diversify the portfolio components in order to get more results. In that case, you

Options:

A.

Disagree with the expert because the company should have came to you before reaching an outside-party

B.

Disagree with the expert because diversification will bring more complexity, thus more risks

C.

Agree with the expert because he is the expert and you should abide by his recommendations

D.

Agree with the expert because diversification in a portfolio may allow for the same portfolio expected return with reduced risk

Question 41

A junior Portfolio manager has come to you for advice. She is asking about her main responsibilities as a portfolio manager in order to see if she is on the right track. What should be your advice to her?

Options:

A.

She will be responsible of managing the strategic, operational and functional activities of all portfolio components

B.

Her responsibility is to continuously review, reallocate, re-prioritize and optimize the portfolio to ensure alignment with strategic objectives

C.

Her responsibility is to develop and maintain portfolio, program and project management frameworks and methodologies

D.

You should tell her to go read the standard for portfolio management where she can find all the needed answers to her questions

Question 42

You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to success and you are coaching your team on the same. You started with developing the plan that will be used as guideline for the component plans to manage risks at their level. What are the outputs of this plan?

Options:

A.

Portfolio Management Plan updates, Portfolio updates, Portfolio Reports, Enterprise Environmental Factors updates

B.

Portfolio Management Plan updates, Organizational Process Assets updates, Portfolio Process Assets updates

C.

Portfolio Management Plan updates, Organizational Process Assets updates, Portfolio Reports, Enterprise Environmental Factors updates

D.

Portfolio Management Plan updates, Organizational Process Assets updates, Portfolio Process Assets updates, Portfolio updates

Question 43

A portfolio manager needs to continuously balance the need and requirements with the available resources and needs to maintain a balanced portfolio and portfolio resources in order to optimize delivery. For this, you are always on the lookout to optimize your portfolio. What can you use to start this process?

Options:

A.

Roadmap, Portfolio Management Plan, Portfolio, Portfolio Reports, Enterprise Environmental Factors

B.

Roadmap, Portfolio Management Plan, Portfolio, Portfolio Reports, Portfolio Process Assets

C.

Roadmap, Portfolio Management Plan, Portfolio, Portfolio Reports, Portfolio Organizational Process Assets

D.

Roadmap, Portfolio Strategic Plan, Portfolio, Portfolio Reports, Portfolio Process Assets

Question 44

As a portfolio manager, you have been reporting the progress, status and performance regularly and you have been doing a good job so far. Reports are the primary documents to communicate portfolio status and be able to balance the mix of portfolio components to best align with objectives. When it comes to optimizing a portfolio, how can risk reports be used?

Options:

A.

To be able to analyze occurred risks and cancel any component who has an increased risk

B.

To be able to define the organization risk tolerance and update the Strategic Plan accordingly

C.

To know about major risks and occurred issues in relation with the portfolio components

D.

To assess achieved value and the confidence level in it

Question 45

You are the manager for a governmental portfolio aiming to restructure the roads in your country. Having a tight schedule, a large number of stakeholders including the public, in addition to a strict budgeting framework, you know that you will be managing the Communication closely and that the governance board and the stakeholders would want to check on the progress and performance frequently. For this you have developed a robust Communication management plan. Which of the below is used while developing this plan?

Options:

A.

Scenario Analysis, Capability & Capacity Analysis, Quantitative & Qualitative Analysis

B.

Elicitation techniques, Capability & Capacity Analysis, PMIS

C.

Elicitation techniques, Communication Requirements Analysis, Stakeholder analysis

D.

Elicitation techniques, Value Scoring & Measurement Analysis, Benefits Realization Analysis

Question 46

One of your goals as a portfolio manager is to ensure that your stakeholders receive the information they need for decision making. To help manage the portfolio information that is provided, you decide to gather information by holding portfolio component review meetings. Your purpose in holding these meetings is to:

Options:

A.

Ensure the components can provide the data required for status reports

B.

Use them to introduce the portfolio management information system

C.

Validate data that now are in the reports

D.

Work with component managers to plan dashboard reports

Question 47

For governments worldwide, you normally have a lot of people reluctant to change and to using new technology tools especially for communication. You are managing a governmental portfolio and planning for a transformational endeavor. You are currently depicting the various communication media and methods to be used, where is this information normally used?

Options:

A.

Communication Matrix

B.

Stakeholder Communication Strategy Matrix

C.

Stakeholder Groups

D.

Stakeholder Matrix

Question 48

Each year, you update the portfolio roadmap so people within the organization can see component status, interdependencies, constraints, and business value, among other things. This year, however, two major programs in the portfolio were cancelled as they were government contracts, and the government lacked funds to complete them. Your management then had to reduce staffing. These two programs had dependencies with other components in the portfolio. This means that:

Options:

A.

The other components may need to be cancelled

B.

The proposed benefits from the other components require analysis to see if they can be realized and sustained

C.

The value measurement criteria for portfolio components require updates

D.

The overall value of the portfolio is affected adversely

Question 49

When we talk about portfolios, programs and projects, it is inevitable to mention the business value which is the sum of tangible and intangible assets of an organization, also known as the net quantifiable benefit. When it comes to business value, at which level of the organization is the delivery of Business Value optimized?

Options:

A.

Portfolio

B.

Project

C.

Program

D.

Operational

Question 50

Assume your automotive company is new to formal portfolio management. It has had for years a strategic plan and tries to be first to market for new and improved features on its vehicles each model year. You were hired as the portfolio manager to provide a more disciplined approach for determining new products to pursue as well as existing ones that should be terminated. So far, you have set up an approach, established categories for the various components, and determined a method to rank and score new proposals for consideration. Now you are working to set up practices to follow to optimize the portfolio. In doing so, it is important to note that:

Options:

A.

The criteria to optimize the portfolio may be the same as that used in the scoring model

B.

A portfolio management information system should be set up

C.

Future investment requirements are a key criterion to consider

D.

Compliance with organizational standards cannot be overlooked

Question 51

Risk management is an integral part of project, program and portfolio management and is invoked throughout the project, program and portfolio life cycle. When it comes to managing portfolio risks, which of the following activities is used

Options:

A.

Risk Response

B.

Risk Assessment and Risk Response

C.

Risk Planning

D.

Risk Assessment

Question 52

Portfolio balancing can be done in several different dimensions based on organizational preferences. When your software development company, which is CMMI Level 5 certified, began to focus on portfolio management four years ago, you started with a simplified ranking approach and now moved into using an automated, sophisticated weighted scoring software tool throughout the organization. In terms of portfolio balancing, it is appropriate to:

Options:

A.

Balance the portfolio across the organization

B.

Balance the portfolio according to categories

C.

Balance the portfolio by business unit

D.

Balance the portfolio in terms of expected value of benefits

Question 53

While managing portfolio communications, the portfolio manager needs to account for the communication needs of the component teams in order for them to stay in the loop of the big picture. Which of the following can be of interest to this group of stakeholders?

Options:

A.

To know about the portfolio changes, risks and issues that may affect their components

B.

To be informed regularly of the portfolio progress so they can adjust their work accordingly

C.

To be informed of all portfolio changes so they can assess which changes affect their components

D.

To know about the portfolio changes, risks and issues that may affect their components, and to do interdependency management in order to cover any dependent component's issues

Question 54

You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to success and you are coaching your team on the same. You are currently in the process of developing the risk management plan. Which of the following activities will you be performing?

Options:

A.

All of the options

B.

Risk Response

C.

Risk Assessment

D.

Risk Planning

Question 55

As a portfolio manager, you know that optimizing a portfolio has the focus of maintaining a balanced portfolio. When optimizing a portfolio, what is the state of the portfolio components that will be balanced?

Options:

A.

Selected

B.

Identified

C.

Scored And Ranked

D.

Prioritized

Question 56

Risks perspectives differ within the organization between executive management, operations management, portfolio management and project/program management. Which of the following are common risk concerns across the organization?

Options:

A.

Reporting and data accuracy

B.

Organizational Integrity

C.

Time, cost and scope commitments

D.

Issues with Product development

Question 57

As part of the strategic alignment, you Identify prioritization criteria (e.g., legislative, dependencies, ROI, stakeholder expectations, strategic fit) using information gathering and analysis techniques in order to

Options:

A.

Create portfolio scenarios

B.

Understand the strategic priorities

C.

Create a basis for decision making

D.

Provide a guiding framework to operationalize the organizational strategic goals and objectives

Question 58

One of the junior portfolio managers learned that she needs to use the roadmap as an input to the portfolio management plan development. She does not understand why, and she came to you for advice. What is your advice to her?

Options:

A.

Roadmap contains the portfolio structure which is used to structure the components for management through the portfolio management plan

B.

Roadmap is not an input to this process

C.

Roadmap provides the prioritization model to the portfolio management plan

D.

High-level timelines in roadmap are used to define low-level schedule and timelines for portfolio components

Question 59

You are the portfolio manager for a large and complex portfolio with a low risk appetite. You are currently planning for risk management, multiple investment choice tools are used as part of the quantitative and qualitative analyzes. Which of the following tools focuses on pricing and sales forecast?

Options:

A.

Market Payoff variability

B.

Trade-Off Analysis

C.

Market Requirement Variability

D.

Budget Variability

Question 60

When it comes to managing the portfolio value, one of the junior portfolio managers came to you asking about the relation between cost-benefit analysis and the efficient frontier analysis. What should your answer to her be?

Options:

A.

The Efficient frontier analysis is used while performing the Cost-benefit analysis in order to get the confidence factor in the estimates

B.

Efficient frontiers are not static, and organizations should monitor cost-benefit ratios on a continual basis

C.

Efficient frontier tracks the realized value against planned costs; thus is another way of cost-benefit analysis

D.

Cost-Benefit analysis are not static, and organizations should monitor the efficient frontier ratios on a continual basis

Question 61

As the Director of Human Resources, you were pleased to be asked to join the Portfolio Steering Committee in your organization as you feel you can contribute given the scarce subject matter experts as your company begins to enter a new market in children's toys rather than its main focus on video games and apps. Children's toys will represent a new portfolio in the company. However, while you will concentrate primarily on the resource allocation issue as you work to determine the types of projects and programs to pursue, it is important as well to recognize that:

Options:

A.

External procurements may be needed to acquire the SMEs

B.

The budgets allocated for day-to-day activities may be impacted

C.

The existing portfolio's prioritization criteria will definitely require changes

D.

The benefits from existing programs under way may not be realized

Question 62

Specific types of communication technology that are used such as communication media, record retention policies, and security information are examples of:

Options:

A.

Organizational process assets

B.

Portfolio process assets

C.

Items in the information distribution process

D.

Items needed to cover the portfolio communications management plan

Question 63

You have just finalized aggregating value from the ongoing components to present a consolidated report to the governance board, in addition to recommending changes to portfolio and information to enable a better decision making. You are now looking for a place to document updates including new measures, reports and processes for effective ongoing management of the portfolio value. In which of the following documents are these measures included?

Options:

A.

Portfolio Management Plan updates

B.

Portfolio Process Assets updates

C.

Portfolio Reports

D.

Portfolio updates

Question 64

Due to market technological changes, your company got impacted and was urged to revise its portfolios. You are currently revising your portfolio to determine the required changes in the component mix. Which of the following options helps in comparing the current portfolio mix to the new strategic direction in order to determine the needed changes?

Options:

A.

Interdependency Analysis

B.

Prioritization Analysis

C.

Portfolio Component Inventory

D.

Gap Analysis

Question 65

Assume at this point as the portfolio manager in your mattress company, you are activating portfolio components, updating portfolio reports, and documenting the decisions made at the recent Portfolio Governance Committee meeting as the company moves into new markets. You are therefore:

Options:

A.

Communicating decisions to all stakeholders

B.

Maintaining a decision log from the Committee meeting

C.

Updating the portfolio strategic plan

D.

Authorizing the portfolio

Question 66

Risk management is an integral part of project, program and portfolio management and is invoked throughout the project, program and portfolio life cycle. Which of the following highlights the difference between portfolio risk and program or project risks?

Options:

A.

Portfolio risks focus on strategies, whereas program and project risks focus on implementation

B.

Portfolio Risks may be actively accepted in anticipation of high rewards, whereas, program and project level risks are not

C.

Portfolio risks are the aggregation of subsidiary programs and projects risks

D.

Portfolio risks can not be mitigated to other third parties, whereas program and project risks can

Question 67

In a portfolio, data is an abundant asset, and managing the information aiming for a a better decision making is critical. For this you use a variety of Quantitative and Qualitative analysis methods. These methods are performed in 4 of the portfolio management processes and serve a slightly different purpose in each and every one of them. Considering that you are currently performing risk assessment and handling risk responses, how can you make use of the quantitative and qualitative analysis?

Options:

A.

Performing resource leveling, project sequencing techniques and dependency analysis

B.

Performing Cost-benefit analysis, quantitative analysis, scenario analysis, probability analysis, SWOT analysis, Market/competitor analysis and business value analysis

C.

Performing Status and trend analysis, Rebalancing methods, Investment choice tools, exposure charts

D.

Performing Quantitative analysis and Sensitivity analysis

Question 68

Portfolios have a lot of components in them and are executed along an extended lifecycle. For this, as a portfolio manager, you continuously monitor and control the progress and status. What input can you use to help you with this?

Options:

A.

Roadmap, Portfolio Management Plan, Portfolio, Portfolio Reports, Enterprise Environmental Factors

B.

Roadmap, Portfolio Management Plan, Portfolio, Portfolio Reports, Portfolio Process Assets

C.

Roadmap, Portfolio Management Plan, Portfolio, Portfolio Reports, Portfolio Organizational Process Assets

D.

Roadmap, Portfolio Strategic Plan, Portfolio, Portfolio Reports, Portfolio Process Assets

Question 69

Managing risk is key to the success of any initiative. Risk is considered to be inherent in any activity we do in project management and at any level. When it comes to risk tolerance definition, which of the following is the correct one?

Options:

A.

The confidence level of key stakeholders and executive management in the risk management activities

B.

Threshold or attitude of an organization towards the negative effects of risks on the organization's portfolio

C.

Threshold or attitude of an organization towards the positive or negative effects of risks on the organization's portfolio

D.

Threshold or attitude of an organization towards the positive effects of risks on the organization's portfolio

Question 70

Your probability and impact assessment work is complete, and you are using the results to prepare the portfolio risk management plan. As you do so, it also is useful to:

Options:

A.

Define the assurance levels of the risk and its performance measures

B.

Validate with your stakeholders that your analysis meets their expectations

C.

Communicate the results with others in the organization for greater transparency

D.

Identify specific trends for each risk using qualitative and quantitative analysis

Question 71

A portfolio manager on one of the major sub-portfolios in your portfolio has tendered his resignation and gave you a 2 months notice. This unexpected change will require you to take immediate action with the governance board. Which of the following processes will be handling this situation?

Options:

A.

Manage Portfolio Risk

B.

Provide Portfolio Oversight

C.

Manage strategic change

D.

Manage Supply & Demand

Question 72

You have been asked to manage a major portfolio in order to salvage the company and and re-align it with the strategic objectives and goals. You decided to develop the strategic documents and are currently developing the charter. As a portfolio manager, which of the following would be your answer when asked of the purpose for the development of portfolio charter?

Options:

A.

Execute portfolio management processes

B.

Authorize portfolio components

C.

Start the development of Portfolio Management plan and all of its subsidiary plan

D.

Develop portfolio structure

Question 73

Many people in your country are no longer eating food from cans because of the risk of botulism and eColi O1H747. Your low acid canned foods company is seeing its revenues decrease as a result, and it is updating its overall strategy for the company to diversify into other markets as well as to add an aggressive marketing campaign to ensure the public that its low acid canned foods are generally recognized as safe by the Food and Drug Administration. This means in terms of portfolio management:

Options:

A.

Each proposed component must demonstrate business value before it is undertaken

B.

The ROI for existing components should be reviewed to determine if they should continue

C.

The existing inventory of work should be validated against the updated strategy

D.

The benefits to be realized by existing components require standard KPIs tied to critical success factors

Question 74

You are the manager of a major portfolio with a variety of stakeholders and stakeholder groups. you know that managing communication is key to success and you stress on maintaining a high communication level. You have just finalized the development of the Portfolio Communication Management Plan. Which of the following is correct regarding its purpose and focus?

Options:

A.

Articulates the options, preferences, and factors that will be considered in a specific portfolio

B.

Identifies recipients for information associated with the portfolio management process

C.

Shows how and when the portfolio resources will be planned, balanced, and allocated to the portfolio components

D.

Describes the approach and intent of management in identifying, approving, procuring, prioritizing, balancing, managing, and reporting a portfolio

Demo: 74 questions
Total 495 questions