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PFMP · Question #366

The portfolio undergoes a lot of changes through the portfolio life cycle, and the state of the portfolio changes on the go. Some components are terminated, other are added and initiated. When it…

The correct answer is B. List of selected and balanced components. The portfolio moves through sequential states as it progresses through processes. Entering the 'Authorize Portfolio' process, the portfolio consists of a list of selected and balanced components - they have been evaluated, scored, ranked, and balanced (in the 'Optimize…

Portfolio Governance

Question

The portfolio undergoes a lot of changes through the portfolio life cycle, and the state of the portfolio changes on the go. Some components are terminated, other are added and initiated. When it comes to the authorize portfolio process, which of the following represents the state of the portfolio

Options

  • AList of current components that need to be weighted, scored and ranked
  • BList of selected and balanced components
  • CList of strategically aligned portfolio components without the need for them to be balanced
  • DList of selected, balanced and authorized components ready to be initiated

How the community answered

(24 responses)
  • B
    92% (22)
  • C
    4% (1)
  • D
    4% (1)

Explanation

The portfolio moves through sequential states as it progresses through processes. Entering the 'Authorize Portfolio' process, the portfolio consists of a list of selected and balanced components - they have been evaluated, scored, ranked, and balanced (in the 'Optimize Portfolio' process) but not yet formally authorized. Authorization is what this process grants. Option A (weighted, scored, and ranked) describes the state before balancing. Option D (selected, balanced, and authorized) describes the state AFTER the Authorize Portfolio process completes. Option C (strategically aligned but not balanced) is not a valid portfolio state within the standard lifecycle.

Topics

#Portfolio Authorization#Portfolio Lifecycle#Portfolio Components#Portfolio Balancing

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