PFMP · Question #422
You are managing a portfolio for a major car dealer in the region and due to diversity of locations, funding terms and your client's corporate structure, you have a big number of components to be…
The correct answer is A. Portfolio Strategic Plan. The Portfolio Strategic Plan is the document where the prioritization model is defined. It contains the strategic goals, objectives, and the criteria and scoring models used to evaluate, categorize, score, and rank portfolio components. The prioritization model ensures that…
Question
You are managing a portfolio for a major car dealer in the region and due to diversity of locations, funding terms and your client's corporate structure, you have a big number of components to be included in the portfolio. With such a huge number, you need to prioritize the components in order to prepare the mix of components to execute. Where can you find the prioritization model?
Options
- APortfolio Strategic Plan
- BPortfolio Charter
- CPortfolio Roadmap
- DPortfolio Risk Management Plan
How the community answered
(29 responses)- A90% (26)
- B7% (2)
- D3% (1)
Explanation
The Portfolio Strategic Plan is the document where the prioritization model is defined. It contains the strategic goals, objectives, and the criteria and scoring models used to evaluate, categorize, score, and rank portfolio components. The prioritization model ensures that components are selected based on their alignment with organizational strategy and their relative value. The Portfolio Charter authorizes the portfolio but does not define the prioritization model. The Portfolio Roadmap shows timeline and dependencies. The Portfolio Risk Management Plan addresses risk-related strategies. When a portfolio manager needs to determine how to rank a large number of diverse components, they refer to the prioritization model found in the Portfolio Strategic Plan.
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