Practice PfMP Exam Online

Question 1

Moving from project management to program management and now being appointed as the first portfolio manager in your cyber warfare company, you know you always wondered what happened to the various reports you had to prepare, and the metrics you had to collect. You are working now to determine critical metrics for portfolio management and decided to involve as many people as possible through questionnaires and surveys. You also held some focus groups. The purpose is to:

A : Ensure the metrics that are collected support the SMART principle

B : Maximize portfolio value

C : Represent the vital few rather than the trivial many

D : Can be gathered with minimal disruption

Answer: B

Question 2

One key artifact to review as the portfolio communications management plan is prepared is the:

A :

Portfolio management plan as it shows all elements in it have communications requirements

B :

Portfolio performance plan as it sets forth needed reports and their frequency

C :

Portfolio strategic plan since it shows the need for strategic alignment

D :

Portfolio benefits realization plan to determine reports on progress in benefit realization, transition, and

sustainment

Answer: A

Question 3

For years, your aerospace company has been a leader in the development of sophisticated avionic hardware

systems around the world. The executives want to continue with this well-recognized product line, but also

they decided it is time to move into state-of-the art software to complement the hardware products. You have

been asked to assess whether there are skill set limitations in the company to assess resource capacity

internally. To do so, you decide to:

A : Focus on needed competencies and develop competency profiles for the internal staff

B :

Interview staff members based on performance evaluations to determine their interest in the new product

line

C :

Work with Human Resources and review the education backgrounds of internal staff and see if people

have taken recent training

D :

Set up a contingency plan by asking the Procurement Department to issue a Request for Information to

external consulting firms

Answer: A

Question 4

Working previously in the financial industry and studying finance and risk in graduate school, you are familiar

with Markowitz's Efficient Frontier theory. Now assume you are the portfolio manager for a state government

agency. Your agency has a reputation of being risk adverse but given recent budget cuts, you have convinced

your executive team it needs to pursue some new programs and projects to demonstrate its benefits to the state.

You decided to apply the Efficient Frontier concepts to show them the current state of its components in terms

of risk and associated costs. You explained the portfolio is efficient if it has:

A : A mix of components—from high risk/high return to low risk/low return

B :

The ability to quantify the value of risk in monetary terms

C :

The possible overall portfolio value with the greatest possible benefits

D :

The best possible expected level of return for its level of risk

Answer: D

Question 5

Assume you are helping the Portfolio Review Board select and implement the portfolio with the best alignment to strategy as you work to create a list for to be considered for prioritization. One possible component on the surface does not seem to be one that is profitable, but you believe that over time changes will occur that will make it cost/beneficial to pursue. This means you are using:

A : Market analysis

B : Business value analysis

C : Scenario analysis

D : Options analysis

Answer: D

Name:	Portfolio Management Professional (PfMP)
Exam Code:	PfMP
Certification:	PMI PfMP
Vendor:	PMI
Total Questions:	500
Last Updated:	Apr 25, 2024

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