PMI PFMP Online Practice Questions and Exam Preparation

PMI PFMP Online Questions & Answers

• Question 341:

  When managed correctly, the balanced scorecards can change the way an organization does business. Balanced scorecards keep focus on results. As a portfolio manager, you use the balanced scorecards while developing the Portfolio Management Plan in order to

  A. Ensure alignment to organizational strategy and objectives
  B. Ensure alignment to investment risk, and dependencies
  C. Ensure alignment to expected return on investment (ROI)
  D. All of the options
  D. All of the options

• Question 342:

  The portfolio manager defines the portfolio based on a listing of already existing work in the organization and selects the right components in order to be able to prioritize them. What do you use for defining the portfolio based on the listing of work?

  A. Prioritization
  B. Inventory of Work
  C. Portfolio Component Inventory
  D. Elicitation technique
  C. Portfolio Component Inventory

• Question 343:

  In a portfolio, data is an abundant asset, and managing the information aiming for a better decision making is critical. For this you use a variety of Quantitative and Qualitative analysis methods. Considering that you are currently working to quantitatively measure component values, however a few components have intangible benefits and can not be measured using quantitative analysis. How do you plan to proceed?

  A. Subject Matter Experts
  B. Benefits Realization
  C. Using assumptions
  D. Scoring models
  D. Scoring models

• Question 344:

  As soon as you complete the portfolio risk management plan, and you have been working on it now with a team, you realize you need to update some organizational process assets such as:

  A. Risk checklists
  B. Risk register
  C. Lessons learned
  D. Risk interview guide
  A. Risk checklists

• Question 345:

  Your company has had a portfolio management process in place for five years at the enterprise level, in its business units, and even in its complex programs. This year the company's Center for Excellence received an award for its work in this area from PMI? As the Portfolio Manager, you have predefined metrics in place, which are critical because:

  A. They show transparency at all levels
  B. They provide stakeholders with critical information on the health of the portfolio
  C. They show the link of each initiative to the company's strategic goals
  D. They provide insight into the processes being used
  D. They provide insight into the processes being used

• Question 346:

  The members of your Portfolio Review Board and other key stakeholders tend to be risk adverse as the company has survived recent recessions and is profitable. However, in an upcoming meeting with the corporate Board of Directors, they have asked you to show the frequency of meeting certain cost objectives at various percent points. For example assume the portfolio is to meet a $41,000 target in the next month, to be 75% confident this will occur, a forecast of $50,000 is needed. This means you need to show:

  A. The needed contingency reserve
  B. The probability of achieving portfolio objectives
  C. The confidence of meeting success criteria
  D. The values of KPIs with their confidence levels
  B. The probability of achieving portfolio objectives

• Question 347:

  Having worked in portfolio management before, you are pleased you were selected to implement it and be the portfolio manager for your motorcycle company, well known throughout the world. As it is a new function, you worked with the Enterprise Program Management Office to ensure you had a complete inventory of the work in progress. Now as you prepared your various portfolio management artifacts, and have a Portfolio Review Board meeting upcoming in two weeks, sponsors will be proposing new components. This means:

  A. A master schedule of resource allocation is needed
  B. The meeting also should focus on reviewing existing components to see if they are aligned with current strategy
  C. People throughout the organization should know about this meeting and its decisions
  D. The meeting should have a set agenda, and each member should be contacted before it to learn of key issues
  A. A master schedule of resource allocation is needed

• Question 348:

  As you prepare a list of possible components for your railroad to consider since most of its programs and projects are large and complex, your management team has suggested in your analysis of which components to pursue that you conduct statistical simulations of budgets, schedules, and resource allocations. You therefore decide to use:

  A. Net present value
  B. Decision trees
  C. Monte Carlo analysis
  D. An interrelationship diagraph
  C. Monte Carlo analysis

• Question 349:

  You are the manager of a major portfolio with a variety of stakeholders and stakeholder groups. you know that managing communication is key to success and you stress on maintaining a high communication level. As part of the portfolio communication management, multiple documents are prepared in order to effectively manage communications. The Communication matrix is one of the prepared documents, what does it include?

  A. Stakeholders roles, interests, expectations and groups
  B. Stakeholders quadrants showing the level of interest and influence
  C. Representation of all of the communication for the portfolio and their frequency over a period of time
  D. Intended recipients, communication vehicles, frequency and communication areas
  D. Intended recipients, communication vehicles, frequency and communication areas

• Question 350:

  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. 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 is not a risk strategy?

  A. Scenario Analysis
  B. Fallback Plan
  C. Strategies for both threats and opportunities
  D. Response Strategy Selection
  B. Fallback Plan