PFMP Exam Questions

A project is aligned with organizational strategy and offers a high financial return on investment. Why should this project still be lower in priority than other projects?

A portfolio manager is executing a portfolio when there is a change to the organizational strategy. After a change analysis is performed, the portfolio manager wants to reflect the...

When developing a portfolio management plan, on which key sections should the portfolio manager focus?

A portfolio manager is managing a portfolio as described in the following table: The CEO has requested that the portfolio manager calculate the health of the portfolio to achieve t...

Which type of analysis should be used to evaluate whether an organization can approve, fund, and execute portfolio components?

While developing a schedule of portfolio components for proposal to the governance board, a portfolio manager has identified the following priorities of four components: The follow...

If various elements of the governance model for the portfolio have changed, the portfolio manager should document changes to the portfolio management plan and assess the changes'ef...

Who is responsible for guiding the selection, balancing, and termination of portfolio components as well as monitoring portfolio performance metrics?

A portfolio manager who is developing a probability and impact matrix for a portfolio receives the following data and decides that everything with a score over 0.2 should be highli...

Which tool or technique should the portfolio manager use to identify areas in which the portfolio may be underperforming in financially intangible ways?

A portfolio manager is currently in the defining phase of a portfolio that aligns to a new organizational strategy. The portfolio manager is beginning to develop the portfolio char...

A project manager reports that adding a dependency to a project may decrease the overall project cost. Other project managers raise concerns regarding changing portfolio dependenci...

The portfolio manager has updated the financial matrix table for 5 programs. The updated net present value (NPV) and probability of success are listed in the following table: Which...

A recent layoff has left an organization with fewer employees than the current strategic portfolio requires. Which action should the portfolio manager take first?

A portfolio must initiate a new program to develop a new product. This new program will require significant resources currently allocated to existing components. What should the po...

When evaluating portfolio components, which technique should a portfolio manager use to ensure that the portfolio includes components that are aligned to the different aspects of t...

Which activity is most beneficial before implementing a portfolio management information system (PMIS) that aggregates data from all components in a centralized location?

Delays in many component projects have led to a decision to increase the frequency of the portfolio review meeting to every 2 months instead of quarterly in order to monitor the po...

In order to develop the portfolio roadmap, a portfolio manager must have a portfolio:

The balanced scorecard approach uses a scoring process based on:

What should a portfolio manager use to make effective decisions regarding performance metrics?

An organization's senior management team approves new portfolio management processes, but the portfolio manager observes that compliance with the processes is inconsistent. Additio...

A CEO initiates the strategic goal of bringing new products to market during the next five years. In response to this goal, the portfolio manager is tasked with leading a new portf...

An issue arises regarding accountability on one of the major risks in a portfolio. Which area within the portfolio risk management plan should be reviewed immediately to rectify th...

In an attempt to more closely align its efforts with a new set of organizational goals, an organization plans to discontinue some components across multiple portfolios. How should...

What is the purpose of identifying risk tolerance in portfolio management?

A portfolio manager who is developing a probability and impact matrix for a portfolio receives the following data and decides that everything with a score over 0.2 should be highli...

A stakeholder complains of losing time attending status meetings despite receiving regular status reports. How can the portfolio manager resolve this complaint?

For a portfolio focused primarily on new product development, what are the three key components required for an effective portfolio management process?

The portfolio performance management plan should include:

A key portfolio stakeholder has just requested that the portfolio manager add two new portfolio components and terminate another component. What should the portfolio manager do fir...

An optimal portfolio based on Modern Portfolio Theory would:

A portfolio management information system (PMIS) or document database is used to:

Once senior management has identified and agreed upon organizational goals, it is important to prioritize these goals as an input to the portfolio:

The portfolio manager has obtained a prioritized inventory of work for each of the subportfolios of new products, regulatory, and quality improvement. Each subportfolio has been pr...

Which tool or technique is most appropriate for facilitating the outcome of corrective actions?

An efficient portfolio of a risk-averse organization would most likely be found on which part of the efficient frontier curve?

The preferred approach to developing a balanced portfolio risk management plan is to manage the:

A way to assign responsibilities for managing portfolio risk responses is to:

When prioritizing portfolio components based on overall value to the organization, "value" includes factors such as:

The portfolio steering committee has authorized the addition of two new portfolio components and the termination of one existing component. A tool or function that supports the com...

A component manager asks to include a contingency reserve in the budget for some common risks that are valid across several other components in the portfolio. Including this reserv...

Which type of analysis should the portfolio manager use to create a portfolio roadmap?

A large organization has decided to enter a new market. At the time of the decision, all of the targets for existing products and initiatives are still in place without any changes...

Which type of portfolio plan is most appropriate for a portfolio manager to use in finding target audiences and rules for disseminating portfolio issue-related actions?

After several strategic portfolio changes are approved and implemented, the portfolio manager should communicate these changes to:

Which type of analysis is most appropriate for a portfolio manager to use when optimizing a portfolio with reported information as an input?

Which action is most useful to analyze stakeholders'levels of interest and influence?

The best method to ensure stakeholder participation and support for components within the portfolio is:

Due to recent organizational restructuring, a portfolio manager decides to reduce the level of portfolio communications to a specific stakeholder. Which of the following is justifi...