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Portfolio Management Professional PfMP Syllabus Exam Questions Answers

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Total 495 questions
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Portfolio Management Professional (PfMP) Questions and Answers

Question 41

Managing risk is key to the success of any initiative. Risk is considered to be inherent in any activity we do in project management and at any level. When it comes to risk tolerance definition, which of the following is the correct one?

Options:

A.

The confidence level of key stakeholders and executive management in the risk management activities

B.

Threshold or attitude of an organization towards the negative effects of risks on the organization's portfolio

C.

Threshold or attitude of an organization towards the positive or negative effects of risks on the organization's portfolio

D.

Threshold or attitude of an organization towards the positive effects of risks on the organization's portfolio

Question 42

ecause your company's Portfolio Review Board consists of the Directors of its five business units and is chaired by the CEO, the meetings tend to be contentious as there is limited funding available to authorize all the proposed programs and projects. Dissension also is the norm if resources are reallocated from one business unit to another. As a result, the CEO:

Options:

A.

Strives to use consensus to make decisions, but this approach rarely is effective

B.

Decided to use an outside facilitator when meetings are held

C.

Uses multi-voting and makes the final decision

D.

Often uses a Delphi approach

Question 43

Assume your company recently diversified, and in addition to producing its recognized brand of ice cream products, it now also is producing cereal and nutritional products. Assume you have been using the Efficient Frontier to manage portfolio value. With diversification to these new products:

Options:

A.

Each product line should have its own portfolio to use the Efficient Frontier approach effectively

B.

The best possible portfolios are shown above the portfolio curve

C.

The same expected return from the portfolio may be possible

D.

The new potential portfolio outcomes concerning success criteria can be determined

Question 44

When it comes to managing the portfolio value, one of the junior portfolio managers came to you asking about the relation between cost-benefit analysis and the efficient frontier analysis. What should your answer to her be?

Options:

A.

The Efficient frontier analysis is used while performing the Cost-benefit analysis in order to get the confidence factor in the estimates

B.

Efficient frontiers are not static, and organizations should monitor cost-benefit ratios on a continual basis

C.

Efficient frontier tracks the realized value against planned costs; thus is another way of cost-benefit analysis

D.

Cost-Benefit analysis are not static, and organizations should monitor the efficient frontier ratios on a continual basis

Page: 11 / 19
Total 495 questions
Get PfMP Full Access Download PfMP PDF