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PFMP · Question #535

In your opinion as a portfolio manager, which of the following is considered one of the portfolio's concerns?

The correct answer is C. All of the options. All three listed items - balancing components, maximizing financial value, and strategic alignment - are recognized concerns of portfolio management.

Strategic Alignment

Question

In your opinion as a portfolio manager, which of the following is considered one of the portfolio's concerns?

Options

  • ADetermining how to balance components given the organization's capacities and capabilities
  • BMaximizing financial value of the portfolio
  • CAll of the options
  • DTailoring the fit of the portfolio to the organizational strategy and objectives

How the community answered

(44 responses)
  • A
    2% (1)
  • B
    5% (2)
  • C
    93% (41)

Why each option

All three listed items - balancing components, maximizing financial value, and strategic alignment - are recognized concerns of portfolio management.

ADetermining how to balance components given the organization's capacities and capabilities

While balancing components is a valid portfolio concern, selecting only this option ignores the equally valid concerns of financial value maximization and strategic alignment.

BMaximizing financial value of the portfolio

Maximizing financial value is a valid portfolio concern, but it is only one of several concerns and selecting it alone is incomplete.

CAll of the optionsCorrect

Portfolio management concerns include balancing components against organizational capacities and capabilities (A), maximizing the financial value of the portfolio (B), and tailoring the portfolio to fit organizational strategy and objectives (D). All three represent core responsibilities of a portfolio manager as defined in the PMI Standard for Portfolio Management. Selecting 'All of the options' is therefore the most complete and accurate answer.

DTailoring the fit of the portfolio to the organizational strategy and objectives

Tailoring the portfolio to organizational strategy is a valid concern, but selecting it alone excludes the other equally valid portfolio concerns listed.

Concept tested: Core concerns and responsibilities of portfolio management

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

Topics

#Portfolio Concerns#Strategic Alignment#Value Maximization#Resource Balancing

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