PMI PFMP Online Practice Questions and Exam Preparation

PMI PFMP Online Questions & Answers

• Question 161:

  You are in the toughest phase of the portfolio life cycle due to the governmental issues in your country. Yesterday night, one of the key team members quit and left the country. You have included this in the portfolio risk register while planning the portfolio because you knew that this could happen and that this key resource has family in Canada and can leave if the situation gets bad. Following this, you activated the response plan, which is to initiate a new component that will cater for reaching the deliverable in another way. However, an immediate approval is needed for initiation of this component or the end-of-month major deliverable will be delayed. To whom you should present the proposal for urgent approval?

  A. Portfolio Governance Board
  B. Portfolio Sponsor
  C. You can take such decisions
  D. Executive Management
  B. Portfolio Sponsor

• Question 162:

  While managing a program for the banking sector spanning multiple transformational areas. A new portfolio manager comes to you seeking advice on the usefulness of ROI. You tell her that ROI is the best method to measure returns of

  A. Short Duration and High Risk
  B. Long Duration and High Risk
  C. Short Duration and Low Risk
  D. Long Duration and Low Risk
  C. Short Duration and Low Risk

• Question 163:

  Risk management is an integral part of project, program and portfolio management and is invoked throughout the project, program and portfolio life cycle. Which of the following highlights the difference between portfolio risk and program or project risks?

  A. Portfolio risks focus on strategies, whereas program and project risks focus on implementation
  B. Portfolio Risks may be actively accepted in anticipation of high rewards, whereas, program and project level risks are not
  C. Portfolio risks are the aggregation of subsidiary programs and projects risks
  D. Portfolio risks can not be mitigated to other third parties, whereas program and project risks can
  B. Portfolio Risks may be actively accepted in anticipation of high rewards, whereas, program and project level risks are not

• Question 164:

  Although it has taken significant time, you and your team inventoried all the work under way in your new product development company. This list of components should be:

  A. Included in the portfolio roadmap
  B. Part of the portfolio management plan
  C. Prioritized for effective resource allocation
  D. Maintained by the portfolio manager and continually updated
  C. Prioritized for effective resource allocation

• Question 165:

  Portfolio Prioritization Model is included in the Portfolio management plan and guides the ongoing decisions as to which portfolio components should be added, terminated, or changed; which of the following is correct regarding the Prioritization Model purpose and content?

  A. All of the options
  B. Ensures benefits are comprehensively and holistically taken into consideration
  C. Contains criteria to ensure alignment to strategic goals, expected return on investment (ROI), investment risks, and dependencies
  D. Establishes and tailors the decision-making rights and authorities
  C. Contains criteria to ensure alignment to strategic goals, expected return on investment (ROI), investment risks, and dependencies

• Question 166:

  Working to ensure the portfolio management process is one that is followed and is embraced has been a major challenge. As the portfolio manager, assume you set up meetings with the Portfolio Governance Group bi-weekly since there is constant change in your telecom company. You also want the portfolio process to be transparent. To do so, a useful tool to communicate status is:

  A. Reports on funding decisions
  B. A governance decision register
  C. The portfolio roadmap
  D. Key portfolio milestones
  C. The portfolio roadmap

• Question 167:

  Many people in your country are no longer eating food from cans because of the risk of botulism and eColi O1H747. Your low acid canned foods company is seeing its revenues decrease as a result, and it is updating its overall strategy for the company to diversify into other markets as well as to add an aggressive marketing campaign to ensure the public that its low acid canned foods are generally recognized as safe by the Food and Drug Administration. This means in terms of portfolio management:

  A. Each proposed component must demonstrate business value before it is undertaken
  B. The ROI for existing components should be reviewed to determine if they should continue
  C. The existing inventory of work should be validated against the updated strategy
  D. The benefits to be realized by existing components require standard KPIs tied to critical success factors
  C. The existing inventory of work should be validated against the updated strategy

• Question 168:

  Assume you are managing your city's portfolio, and its overall strategic goal is to promote economic development to attract more visitors to the city. It is a difficult challenge as the city is not a major metropolitan area and also is not a preferred winter or summer destination. Nonetheless, you are planning and allocating resources according to the city's strategy. Not to be overlooked as you do so is the need to:

  A. Obtain support from your key stakeholders
  B. Determine a communication strategy to explain your approach
  C. Maximize return considering the city's risk tolerance
  D. Continually update the portfolio inventory
  C. Maximize return considering the city's risk tolerance

• Question 169:

  Stakeholders have complained to you that they are receiving redundant information and they prefer that you fix the issue promptly as it is time consuming for them. What is your best course of action?

  A. Explain to the stakeholders why it is important that they keep receiving this information
  B. Re-assess and re-write the Communication Management Plan after analyzing the stakeholders again
  C. Escalate the issue to the governance board and ask them to take a decision regarding it
  D. Update the communication matrix and remove them from it
  A. Explain to the stakeholders why it is important that they keep receiving this information

• Question 170:

  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. A major risk has recently occurred and the risk owner came to you asking advise on how to report it. what would you advise her?

  A. Portfolio Process Assets
  B. Risk Register
  C. Portfolio Organizational Assets
  D. Portfolio Reports
  D. Portfolio Reports