PMI PFMP Online Practice Questions and Exam Preparation

PMI PFMP Online Questions & Answers

• Question 111:

  As a portfolio manager you try to use all the information available to you in order to get the best out of the existing information and to better plan and manage the portfolio. The Enterprise Environmental Factors are important and referenced throughout the portfolio life cycle. Which of the following is correct regarding their purpose and focus?

  A. Forecasts how and when the portfolio will deliver value to the organization
  B. High-level prioritization mapping of the portfolio
  C. Organization's overall governance processes
  D. Establish communication requirements
  C. Organization's overall governance processes

• Question 112:

  As a portfolio manager, you have been reporting the progress, status and performance regularly and you have been doing a good job so far. Reports are the primary documents to communicate portfolio status and be able to balance the mix of portfolio components to best align with objectives. When it comes to optimizing a portfolio, how can risk reports be used?

  A. To be able to analyze occurred risks and cancel any component who has an increased risk
  B. To be able to define the organization risk tolerance and update the Strategic Plan accordingly
  C. To know about major risks and occurred issues in relation with the portfolio components
  D. To assess achieved value and the confidence level in it
  C. To know about major risks and occurred issues in relation with the portfolio components

• Question 113:

  You have been assigned as the manager for a major transformation portfolio in your company. You have a new direction in sight and you need to work with the team handle this strategic change. Which of the following can serve as input here?

  A. Portfolio Strategic Plan, Portfolio Roadmap, Portfolio Charter, Portfolio Process Assets, Organizational Process Assets
  B. Portfolio Strategic Plan, Portfolio Roadmap, Portfolio Charter, Organizational Process Assets, Portfolio Management Plan
  C. Portfolio Strategic Plan, Portfolio Roadmap, Portfolio Charter, Portfolio Process Assets, Portfolio
  D. Portfolio Strategic Plan, Portfolio Management Plan, Portfolio Roadmap, Portfolio Charter,Portfolio Process Assets, Portfolio
  D. Portfolio Strategic Plan, Portfolio Management Plan, Portfolio Roadmap, Portfolio Charter,Portfolio Process Assets, Portfolio

• Question 114:

  As you focus on managing the value pf the portfolio, you find that portfolio variance/alert reports are helpful. Assume you have been using a 'traffic light' format as it is easy to prepare, but an objective is to:

  A. Add in blue to show completed components
  B. Show dependencies between components with a different color
  C. Set it up to show the organizational value areas in the company
  D. Use a standardized format across components
  D. Use a standardized format across components

• Question 115:

  As a portfolio manager, you know that optimizing a portfolio has the focus of maintaining a balanced portfolio. When optimizing a portfolio, what is the state of the portfolio components that will be balanced?

  A. Selected
  B. Identified
  C. Scored And Ranked
  D. Prioritized
  D. Prioritized

• Question 116:

  Working previously in the financial industry and studying finance and risk in graduate school, you are familiar with Markowitz's Efficient Frontier theory. Now assume you are the portfolio manager for a state government agency. Your agency has a reputation of being risk adverse but given recent budget cuts, you have convinced your executive team it needs to pursue some new programs and projects to demonstrate its benefits to the state. You decided to apply the Efficient Frontier concepts to show them the current state of its components in terms of risk and associated costs. You explained the portfolio is efficient if it has:

  A. A mix of components--from high risk/high return to low risk/low return
  B. The ability to quantify the value of risk in monetary terms
  C. The possible overall portfolio value with the greatest possible benefits
  D. The best possible expected level of return for its level of risk
  D. The best possible expected level of return for its level of risk

• Question 117:

  You are the CIO of a real estate investment trust (REIT) that invests in apartments and condominiums in more than 50% of the states in your country. Your organization has as its goal to respond to any concerns that arise within 24 hours; for example, you want to make sure Wi-Fi sites are operational if there are any power outages, and people have soft phone service available 24/7. You are a member of the REIT's Portfolio Review Board, and as a member of the executive team in terms of portfolio risk management, you want to focus on:

  A. Issues with product support
  B. Identifying and managing liabilities
  C. Interaction of component risks
  D. Inconsistent processes
  B. Identifying and managing liabilities

• Question 118:

  You work in a fairly small company where the PMO helps in providing oversight to support the portfolio management. In such organization, where are the PMO structure, responsibilities, and implementation approach documented?

  A. Portfolio Oversight section in Portfolio Management Plan
  B. Communication Management Plan
  C. Governance Model section in Portfolio Management Plan
  D. Strategic Management Plan
  A. Portfolio Oversight section in Portfolio Management Plan

• Question 119:

  One of your components' managers came to you stating that she cannot find a key stakeholder by email and if she cannot find him, a major decision will be delayed, thus affecting the entire portfolio. What should you, as a portfolio manager do?

  A. Tell her that she needs to try to send him one more e-mail, and in the case the problem persists, she needs to send him a formal letter
  B. Tell her that she needs to carefully monitor this risk
  C. Tell her that she needs to escalate this issue directly to the executive management
  D. Go and meet this stakeholder face to face and collaborate with him to solve this communication issue
  D. Go and meet this stakeholder face to face and collaborate with him to solve this communication issue

• Question 120:

  The Portfolio Management Office (PMO) provides support to the portfolio manager throughout the portfolio life cycle. Which of the below is not something that the PMO supports the portfolio manager with?

  A. Define Portfolio Management best practices
  B. Formulating component management standards
  C. Define Portfolio Management standards
  D. Formulate organizational standards
  D. Formulate organizational standards