PFMP · Question #698
Based on the data in the following table, your organization should pursue which component:
The correct answer is C. Component 2. The correct answer is C: Component 2. Although the referenced table is not reproduced in the question text, Component 2 is identified as the correct selection. In portfolio component selection, the decision is based on a weighted scoring of financial metrics (NPV, ROI, IRR…
Question
Based on the data in the following table, your organization should pursue which component:
Options
- AComponent 5
- BComponent 3
- CComponent 2
- DComponent 1
How the community answered
(32 responses)- A9% (3)
- B3% (1)
- C84% (27)
- D3% (1)
Explanation
The correct answer is C: Component 2. Although the referenced table is not reproduced in the question text, Component 2 is identified as the correct selection. In portfolio component selection, the decision is based on a weighted scoring of financial metrics (NPV, ROI, IRR, payback period) and strategic factors (alignment, risk, resource requirements). Component 2 would score highest across the relevant criteria in the table-likely offering the best balance of financial return, strategic fit, and acceptable risk. Portfolio managers use scoring models precisely to make this kind of objective, data-driven selection rather than relying on intuition, which is why the table data is the decision basis.
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