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The Portfolio Management Professional (PfMP) exam is a certification offered by the Project Management Institute (PMI) to professionals who are responsible for managing portfolios of projects, programs, and operations. The PfMP credential is designed to demonstrate the ability of portfolio managers to align organizational objectives with portfolio strategies, manage portfolio risks, and deliver value to stakeholders.
NEW QUESTION # 25
What can you tell about the following portfolio status, having CPI weight = 80% and SPI weight = 20% Larger image
- A. Work is not preforming well but within range
- B. Work is not performing well and outside of range
- C. Work is progressing as planned but outside range
- D. Work is progressing as planned and within range
Answer: D
NEW QUESTION # 26
After reviewing the portfolio performance reports, which section of the portfolio management plan should a portfolio manager review in order to follow the defined process to approve, execute, and manage schedule and budget adjustments?
- A. Managing strategic change
- B. Change control and management
- C. Portfolio oversight
- D. Performance management planning
Answer: B
NEW QUESTION # 27
You have been assigned as a consultant to give your expertise on a failing portfolio which is critical to the success of your client's organization. You are now in the process of reviewing the portfolio management plan.
What do you expect to see as part of this plan?
- A. Balancing portfolio and managing dependencies
- B. The major components of the portfolio which are aligned chronologically to achieve portfolio value
- C. Portfolio Justification, high-level scope and high-level timelines
- D. Vision for the portfolio, which is based on the alignment with the organization's goals and objectives
Answer: A
Explanation:
Explanation
The Vision for the portfolio, which is based on the alignment with the organization's goals and objectives, is part of the Portfolio Strategic Plan Portfolio Justification, high-level scope and high-level timelines are part of Portfolio charter The major components of the portfolio which are aligned chronologically to achieve portfolio value, are part of the Portfolio Roadmap The Portfolio Management Plan includes: Governance model ; Portfolio oversight; components roles and responsibilities; Managing strategic changes; Change control and management; Balancing portfolio and managing dependencies updates in the budget/funding and the resource allocation; Measuring and monitoring performance and value; Portfolio performance reporting and review; Communication model as part of the communication management plan; Portfolio risk management planning; Procurement procedures; Managing compliance; Portfolio prioritization model; Scope of the portfolio and the initial list of primary internal and external portfolio stakeholders
NEW QUESTION # 28
Which of the following are qualitative measures? (Choose two.)
- A. Return on investment (ROI) of the portfolio
- B. Percentage by which cycle times are reduced due to the portfolio
- C. Recognition of legal and regulatory compliance
- D. Degree of strategic alignment
Answer: C,D
NEW QUESTION # 29
Which of the following enables a portfolio management office (PMO) to measure the aggregate portfolio performance of each project?
- A. Alignment with organizational objectives and the status of each project's ROI
- B. Relevance to stakeholder ownership and the status of each project's available budget
- C. Earned value (EV) analysis and an accounting of each project's sunk cost
- D. Dependency on available resources and the status of each project's time to completion
Answer: A
NEW QUESTION # 30
Chartering a portfolio is a major step in getting the needed authorizations to execute the portfolio.
Your are currently developing the charter and considering the following inputs
- A. Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets, Portfolio Roadmap
- B. Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets, Portfolio Management Plan
- C. Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets
- D. Portfolio Strategic Plan, Enterprise Environmental Factors, Portfolio Process Assets, Portfolio
Answer: C
NEW QUESTION # 31
Performance reporting is important in a program and usually, the portfolio manager aggregates performance information from the portfolio components in order to present the related reports.
Which of the following measures can be used in performance reporting?
- A. CPI and SPI
- B. Earned Value
- C. All the options
- D. Cost Sunk
Answer: C
NEW QUESTION # 32
One of your components within the portfolio has been struggling and has undertaken a lot of issues. A recent measurement has shown that its CPI is 0.4 and SPI is 0.3. What is the best course of action you should take as a portfolio manager
- A. Escalate the issue to the Portfolio steering committee
- B. Notify the sponsor of the component about the issue
- C. Immediately terminate the component
- D. Request that the component governance board checks this component and takes a decision on whether to continue or terminate it
Answer: D
Explanation:
Explanation
The portfolio manager should not directly terminate the component and should instead send a recommendation to the component governance board to terminate the component; the component governance board needs to take the decision on whether to terminate the component or continue working on it. The recommendation is sent in order for the component manager to check if there is a solution to the problem and recommend a change which can be approved or denied by the component's governance board Pay attention, SPM is just a reference guide for the exam, so you will definitely have similar questions from outside the SPM in the exam
NEW QUESTION # 33
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 portfolio more closely, requiring a change in the frequency of reporting cycles. Where should the portfolio manager maintain this information?
- A. Governance decisions
- B. Stakeholder communication matrix
- C. Communication calendar
- D. Portfolio charter
Answer: B
NEW QUESTION # 34
Which items should be considered when determining the performance status of the portfolio?
- A. Return on investment and resources capacity
- B. Sunk cost and earned value
- C. Priority and alignment with corporate targets
- D. Planned budget and schedule performance
Answer: C
NEW QUESTION # 35
A sponsor wants to know the benefits provided by a program. Which of the following documents can you find the desired information in?
- A. Program Benefits Management Plan
- B. Portfolio Performance Management Plan
- C. Portfolio Management Plan
- D. Portfolio Reports
Answer: A
NEW QUESTION # 36
You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to success and you are coaching your team on the same. For this you maintain a risk register. The risk register is used throughout the portfolio life cycle in order to track and manage risks. It is continually updated throughout the portfolio life cycle. As a portfolio manager, you know that the risk register includes all of the following except
- A. Updated risk categories
- B. Person who Identified the risk
- C. List of potential responses
- D. Probability Impact Assessment
Answer: B
Explanation:
Explanation
The Risk Register include: List of identified risks, Risk owner, List of potential responses, Probability Impact Assessment, Risk triggers, Updated risk categories. However, it does not include the person who identified the risk
NEW QUESTION # 37
Which of the following is not an investment choice tool?
- A. Budget variability determines the effect of changing the portfolio
- B. Trade-off analysis determines the effect of changing one or more factors of the portfolio
- C. The use of spreadsheets or other tools to examine factors of interest
- D. Time-to-market variability determines the effects of portfolio velocity
Answer: C
NEW QUESTION # 38
Consider you have the following efficient frontier graph with multiple portfolios on it. Which portfolio do you choose?
Larger image
- A. Portfolio D
- B. Portfolio C
- C. Portfolio A
- D. Portfolio B
Answer: A
Explanation:
Explanation
From the given options, the Portfolio D is the best choice. When it comes to Portfolio Efficient Frontier, the portfolios lying on the curve are the best; portfolio under the curve are sub-optimal and portfolio above the curve are too risky. For a risk-averse organization, it is better to go along the curve and to the left. For risk-tolerant organizations, you can go along the curve and to the right based on the risk threshold of the organization
NEW QUESTION # 39
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 highlighted and addressed.
The portfolio manager finds a new threat - Threat 3 - with a probability of 1.0 and an impact of
0.4.
Which action should the portfolio manager take?
- A. Reevaluate Threats 1 and 2 in the context of Threat 3.
- B. Develop a risk response to Threat 3.
- C. Exclude Threat 3 from the matrix.
- D. Reevaluate Opportunities 1 and 2 in the context of Threat 3.
Answer: C
NEW QUESTION # 40
Who is responsible for guiding the selection, balancing, and termination of portfolio components as well as monitoring portfolio performance metrics?
- A. Component manager
- B. Portfolio manager
- C. Portfolio sponsor
- D. Chief executive officer
Answer: B
NEW QUESTION # 41
Risk management is an integral part of project, program and portfolio management and is invoked throughout the project, program and portfolio life cycle. When it comes to managing portfolio risks, which of the following activities is used
- A. Risk Planning
- B. Risk Assessment and Risk Response
- C. Risk Assessment
- D. Risk Response
Answer: B
NEW QUESTION # 42
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