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PFMP · Question #194

PFMP Question #194: Real Exam Question with Answer & Explanation

The correct answer is B: Degree of strategic alignment and degree of components'risk. See the full explanation below for the reasoning.

Portfolio Performance Management

Question

A portfolio manager is developing a comprehensive portfolio management plan and is unsure which performance metrics need to be defined for the portfolio components. The portfolio consists of internal and external components, and it is difficult to find only qualitative measures to correctly assess them. Which two metrics should the portfolio manager capture in order to perform portfolio balancing on an ongoing basis?

Options

  • ADecrease in cost and increase in revenue
  • BDegree of strategic alignment and degree of components'risk
  • CComponent weighted scoring and degree of strategic alignment
  • DComponent weighted scoring and return on investment

Topics

#Portfolio Balancing#Performance Metrics#Strategic Alignment#Portfolio Risk

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