PFMP · Question #39
A portfolio manager compares strategic objectives, prioritizes objectives, and performs strategic assessments against current enterprise portfolios. Which kind of tools and techniques is he using?
The correct answer is D. Prioritization Analysis. Prioritization Analysis is the technique used when a portfolio manager compares objectives, assigns priority rankings, and assesses the current portfolio composition against those priorities. It involves ranking strategic objectives and portfolio components relative to each other
Question
A portfolio manager compares strategic objectives, prioritizes objectives, and performs strategic assessments against current enterprise portfolios. Which kind of tools and techniques is he using?
Options
- AStrategy Alignment Analysis
- BCost-Benefit Analysis
- CPortfolio Component Inventory
- DPrioritization Analysis
How the community answered
(41 responses)- A2% (1)
- C2% (1)
- D95% (39)
Explanation
Prioritization Analysis is the technique used when a portfolio manager compares objectives, assigns priority rankings, and assesses the current portfolio composition against those priorities. It involves ranking strategic objectives and portfolio components relative to each other. Strategy Alignment Analysis (A) focuses on checking whether components align with strategy, not on ranking them. Cost-Benefit Analysis (B) compares financial costs vs. benefits. Portfolio Component Inventory (C) is a tool for cataloging existing components, not for prioritizing objectives.
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