A number of components proposals are on the table as a result of the strategic planning cycle. While defining the portfolio, you wanted to use a method to help you compare portfolio components that…

The correct answer is C. Categorization technique. The Categorization technique is used during portfolio definition to group and compare portfolio components that address similar strategic objectives, needs, or domains. By categorizing components, a portfolio manager can quickly identify overlaps, redundancies, and gaps, and…

Portfolio Definition Process Group

Question

A number of components proposals are on the table as a result of the strategic planning cycle. While defining the portfolio, you wanted to use a method to help you compare portfolio components that address similar needs. Which of the following techniques you use?

Options

APortfolio Component Inventory
BPrioritization
CCategorization technique
DWeighted ranking and scoring

How the community answered

(23 responses)

B
4% (1)
C
91% (21)
D
4% (1)

Explanation

The Categorization technique is used during portfolio definition to group and compare portfolio components that address similar strategic objectives, needs, or domains. By categorizing components, a portfolio manager can quickly identify overlaps, redundancies, and gaps, and compare similar components against each other. This is a foundational step before scoring or prioritization. 'Portfolio Component Inventory' (A) is a list of all components, not a comparison method. 'Prioritization' (B) ranks components but does not specifically help compare those addressing similar needs. 'Weighted ranking and scoring' (D) is used after categorization to assign numeric scores for decision-making, not for grouping similar components.

Topics

#Portfolio Definition#Portfolio Components#Categorization#Portfolio Selection Techniques

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