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PFMP · Question #671

Assume you are working to ensure your organization has a balanced portfolio. You have decided to use a bubble diagram and have set it up to show the components in terms of: ease of execution…

The correct answer is A. Visualize components. Bubble diagrams in portfolio management are graphical tools used to visually represent portfolio components across multiple dimensions such as ease of execution and component importance.

Question

Assume you are working to ensure your organization has a balanced portfolio. You have decided to use a bubble diagram and have set it up to show the components in terms of: ease of execution [difficult or easy] and component importance [high or low]. In such an approach, bubbles are used to:

Options

  • AVisualize components
  • BFrame the balancing problem
  • CProvide scores as outputs
  • DFocus on existing components

How the community answered

(52 responses)
  • A
    77% (40)
  • B
    8% (4)
  • C
    4% (2)
  • D
    12% (6)

Why each option

Bubble diagrams in portfolio management are graphical tools used to visually represent portfolio components across multiple dimensions such as ease of execution and component importance.

AVisualize componentsCorrect

Bubbles in a bubble diagram each represent an individual portfolio component, allowing decision-makers to plot and compare components across two or more axes simultaneously, making the composition and relative positioning of the entire portfolio easy to interpret at a glance.

BFrame the balancing problem

Framing the balancing problem is a prerequisite activity that determines which dimensions to use before constructing the diagram, not the function performed by the bubbles themselves.

CProvide scores as outputs

Scores are inputs used to position bubbles on the diagram, not outputs produced by the bubbles.

DFocus on existing components

A bubble diagram can represent both existing and proposed components, so limiting its purpose to existing components misrepresents its scope.

Concept tested: Bubble diagram use in portfolio visualization

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

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