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PFMP · Question #48

You're using a bubble graph to compare and balance portfolio components. How do you call a bubble graph technically?

The correct answer is A. Graphical Analytical Methods. A bubble graph used to compare and balance portfolio components is technically classified as a Graphical Analytical Method in portfolio management.

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Question

You're using a bubble graph to compare and balance portfolio components. How do you call a bubble graph technically?

Options

  • AGraphical Analytical Methods
  • BCapability and Capacity Analysis
  • CScenario Analysis
  • DCommunication Methods

How the community answered

(49 responses)
  • A
    88% (43)
  • B
    8% (4)
  • C
    2% (1)
  • D
    2% (1)

Why each option

A bubble graph used to compare and balance portfolio components is technically classified as a Graphical Analytical Method in portfolio management.

AGraphical Analytical MethodsCorrect

Graphical Analytical Methods in portfolio management include visual tools such as bubble charts, scatter plots, and histograms that represent component data across multiple dimensions like risk, value, and strategic alignment simultaneously. A bubble graph specifically uses axis positions and bubble size to enable multi-dimensional visual comparison and balancing of portfolio components.

BCapability and Capacity Analysis

Capability and Capacity Analysis evaluates whether the organization has sufficient resources to execute its portfolio components, and is not a graphical comparison or balancing tool.

CScenario Analysis

Scenario Analysis involves modeling alternative 'what-if' situations to assess portfolio impacts under different conditions, which is conceptually distinct from a visual balancing tool.

DCommunication Methods

Communication Methods refer to channels and approaches for sharing portfolio information with stakeholders, not analytical or visualization techniques.

Concept tested: Graphical Analytical Methods - bubble chart in portfolio balancing

Source: https://www.pmi.org/pmbok-guide-standards/foundational/standard-for-portfolio-management

Topics

#Bubble graph#Graphical analytical methods#Portfolio analysis#Analytical tools

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