PMI PFMP Online Practice Questions and Exam Preparation

PMI PFMP Online Questions & Answers

• Question 121:

  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. Risk is part of project, program and portfolio management and has a different exposure in each and every one. When it comes to Managing portfolio risks, a risk owner, along with the portfolio manager, should select the strategy or mix of strategies most likely to be effective. Which of the following may be the responsibility of a risk owner when it comes to managing risks?

  A. Select primary and alternative strategies
  B. Make decisions to choose the most appropriate response strategy or mix of strategies and develop specific actions to implement those decisions
  C. All of the options
  D. Develop contingency plans and identify the conditions which trigger their execution
  C. All of the options

• Question 122:

  You are the manager for a governmental portfolio aiming to restructure the roads in your country. Having a tight schedule, a large number of stakeholders including the public, in addition to a strict budgeting framework, you know that you will be managing the portfolio closely and that the governance board and the stakeholders would want to check on the progress and status frequently. For this you have developed a robust Portfolio management plan. What do you expect as output of this development?

  A. Portfolio Management Plan, Portfolio Roadmap update, Portfolio Charter update, Enterprise Environmental Factors update
  B. Portfolio Management Plan, Portfolio Reports update
  C. Portfolio Strategic Plan update, Portfolio Process Assets updates, Portfolio Management Plan
  D. Portfolio update, Portfolio Roadmap update, Portfolio Management Plan
  C. Portfolio Strategic Plan update, Portfolio Process Assets updates, Portfolio Management Plan

• Question 123:

  Consider you have the following efficient frontier graph with multiple portfolios on it. Which portfolio do you choose?

  A. Portfolio D
  B. Portfolio B
  C. Portfolio C
  D. Portfolio A
  A. Portfolio D

• Question 124:

  Working to monitor the portfolio especially in terms of its value to the organization, you had each component manager prepare monthly variance reports. Of the components ranked in the top 10, six of them realized they would not require some of their initial funding and still would be completed as planned. This means:

  A. Three-point estimating should be used as funds are allocated
  B. Next year's budget can be adjusted
  C. Historical data would be useful on estimates versus actual costs
  D. The amount of contingency and management reserves can be decreased
  B. Next year's budget can be adjusted

• Question 125:

  Risks are very important to manage in portfolio management and organizations can choose to embrace risks with the potential of high rewards. As a portfolio manager, planning and managing risks is important. Risks are categorized in order to ease the process. Which of the following are considered as risk categories that a portfolio manager can use?

  A. All of the options
  B. Performance Risk, Regulatory Risk
  C. Portfolio Component Risk, Market Risk
  D. Organizational Risk, Image and Public Relation Risk
  B. Performance Risk, Regulatory Risk

• Question 126:

  As part of developing the Communication Management Plan, a portfolio manager executes the Communication Requirements Analysis, in addition to Stakeholders Analysis. Which of the following options in your opinion is a result of the Communication Requirements Analysis?

  A. Stakeholder matrix
  B. Communication Matrix
  C. All of the options
  D. Communication Strategy matrix
  B. Communication Matrix

• Question 127:

  A new project manager was given an assignment on one of the components in your portfolio. What will you do as a portfolio manager in order to align the project manager with the strategic direction and integrate him/her with the work in progress?

  A. Let him check the Project Charter and ask you in the case where he needs your help
  B. Let him check the Portfolio Charter and ask you in the case where he needs your help
  C. Update the roles and responsibilities in the Portfolio Management Plan
  D. Train him on the portfolio management processes
  C. Update the roles and responsibilities in the Portfolio Management Plan

• Question 128:

  The existing portfolio manager was replaced by a new portfolio manager and the analysis has shown that the distance between the pessimistic and best case scenario of the new portfolio manager is larger than the old one, which kind of manager is the new one?

  A. Optimistic
  B. Pessimistic
  C. Risk Averse
  D. Risk Taker
  D. Risk Taker

• Question 129:

  Portfolio management processes are performed in an environment broader than a portfolio; therefore, an organization-level implementation team supported by executive management, a governing body, and portfolio managers join forces to implement organization-level portfolio management processes. After Defining roles and responsibilities for portfolio management process implementation, what should be the FIRST next step?

  A. Define and deploy detailed portfolio management processes and provide training to staff and stakeholders.
  B. Changing business processes
  C. Developing the Portfolio Strategic Plan
  D. Communicate the portfolio management implementation plan
  D. Communicate the portfolio management implementation plan

• Question 130:

  Following a recent portfolio health check, you noticed that your portfolio is not aligned with the strategic plan and actions should be taken to stop losing money. What should be your next course of action?

  A. Escalate to the executive management
  B. Update the Strategic Plan
  C. Escalate to Governance Board
  D. Escalate to sponsor directly
  C. Escalate to Governance Board