PMI PFMP Online Practice Questions and Exam Preparation

PMI PFMP Online Questions & Answers

• Question 101:

  The Portfolio Management Office plays an integral role in Portfolio Management and offers support to the portfolio manager throughout the portfolio life cycle. What is the role of the PMO with respect to the portfolio performance metrics?

  A. PMO does not have a role in the development or update of performance metrics; it should only offer support to Portfolio Manager with the needed templates to develop metrics
  B. The Portfolio Manager develops and updates the portfolio metrics and the PMO approves them
  C. PMO should work hand in hand with the governance board to approve the performance metrics
  D. PMO should be prepared to develop new metrics when appropriate and delete or change metrics that are no longer relevant
  D. PMO should be prepared to develop new metrics when appropriate and delete or change metrics that are no longer relevant

• Question 102:

  You are the portfolio manager for your military-vehicle service firm, which has been in existence for 20 years. You have a number of components under way, and others in the pipeline. One component involves a new gas detection system, which uses new technology. It has interfaces with two other existing components plus one in development. Recently, a simulator, used by three components, had to be shut down completely as it was leaking nitrogen and could lead to asphyxiation. You reported it immediately to the Hazardous Materials and Pipeline Safety Administration. This is an example of a:

  A. Execution risk
  B. Structural risk
  C. Critical incident
  D. Known unknown
  A. Execution risk

• Question 103:

  You are working diligently to ensure people throughout the organization realize the importance of portfolio management. To do so, you are preparing a communications strategy. When you distribute it, you will be able to show you can satisfy information requirements in order to:

  A. Show the data you plan to collect will be analyzed
  B. Provide credibility for a portfolio management process
  C. Meet the organization's objectives
  D. Push information to stakeholders on portfolio status
  C. Meet the organization's objectives

• Question 104:

  With the increasing use of drywall, your company, which has been in the plaster business for over three generations, is finding it harder to maintain a share of the market and to achieve a positive return on its investments. Three years ago,

  the corporate executives implemented a portfolio process, and they serve as the Portfolio Governance Council. They meet monthly, and after each meeting, you prepare a report of their decisions. This report

  is:

  A. Sent to all employees in the company as it focuses on employee empowerment and involvement
  B. Distributed only to the Governance Council to serve as a record of their meetings
  C. Is used to authorize the portfolio
  D. Is used to analyze the effects of their decisions on the company's portfolio
  C. Is used to authorize the portfolio

• Question 105:

  Your portfolio has encountered a big issue and multiple management decisions have been taken in order to re-align the portfolio with the strategic objectives. What is the tool that you use in order to report major risks and issues to stakeholders?

  A. Portfolio Management Plan
  B. Portfolio Risk Register
  C. Portfolio Reports
  D. Portfolio Status Reports
  C. Portfolio Reports

• Question 106:

  The portfolio strategic plan should contain a prioritization model or approach that guides the ongoing decisions as to which portfolio components should be added, terminated, or changed, as well as prioritizes and balances the component mix over time. A simple prioritization model may be provided which contains

  A. All of the options
  B. ROI
  C. Criteria to ensure alignment to strategic goals
  D. Investment risks
  A. All of the options

• Question 107:

  Portfolio Prioritization Model is included in the Portfolio management plan and Portfolio Strategic Plan. How does it serve the Portfolio as part of the Portfolio Strategic Plan?

  A. All of the options
  B. Ensures benefits are comprehensively and holistically taken into consideration
  C. Guides the ongoing decisions as to which portfolio components should be added, terminated, or changed
  D. Used as a decision framework to structure the portfolio components
  D. Used as a decision framework to structure the portfolio components

• Question 108:

  Assume you are responsible for portfolio management in your organization. You are responsible for managing the value of the portfolio and for recommending changes to your Portfolio Review Board to enhance its value. To do so, you monitor benefits, interdependencies between components, changes, and responsibilities and accountabilities as stated in the:

  A. Portfolio charter
  B. Portfolio management plan
  C. Portfolio performance plan
  D. Portfolio strategic plan
  B. Portfolio management plan

• Question 109:

  One of the junior portfolio managers learned that she needs to perform organizational structure analysis as part of the portfolio management plan development. She does not understand why and she came to you for advice. What is your advice to her?

  A. Portfolio Management roles and responsibilities are defined based on this analysis
  B. This analysis, along with the analysis of the portfolio structure from the charter, help in the selection of strategically aligned portfolio components
  C. This analysis will help in prioritizing the portfolio
  D. This analysis is part of the develop strategic plan and not develop portfolio management plan
  A. Portfolio Management roles and responsibilities are defined based on this analysis

• Question 110:

  As a result of optimization, one of the components was deemed necessary to be terminated. One of the executive managers found about this and called you telling you that you should leave this component as it is of interest to her and she wants to see it finalized and that she will make resources available to it if needed. What should be your best course of action?

  A. Ask the steering committee for more resources in order to be able to continue with this component
  B. Ask the senior manager directly for resources as you know that this component requires additional resources
  C. Highlight the issue in the governance board meeting and recommend termination based on facts and thorough analysis
  D. Continue working on the component as you have the support of one of the senior managers
  C. Highlight the issue in the governance board meeting and recommend termination based on facts and thorough analysis