PMI PfMP Exam Practice Test Instant Access

Question 1

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?

AAll of the options

BEnsures benefits are comprehensively and holistically taken into consideration

CContains criteria to ensure alignment to strategic goals, expected return on investment (ROI), investment risks, and dependencies

DEstablishes and tailors the decision-making rights and authorities

Answer : C

Question 2

You are approaching a major checkpoint and right before the review meeting, one of the key stakeholders asked you to add a small component which is of high interest to her and requires minimal effort and spans a short duration. What should you, as a portfolio manager do?

AFind out its strategic alignment and present it to the steering committee

BAdd it directly to the portfolio after prioritization because it is a quick project and it will have high value to a key stakeholder

CDirectly reject the request as it is unethical

DPropose the request during the upcoming steering committee meeting

Answer : A

Question 3

You have set a meeting with your portfolio team members as an answer to the identification and update of the organization near-term budget and plans. One of your team members asked you of the goal of what is being done. Your answer to him should be

AAll of the options

BAuthorizing the portfolio

CInitiating the portfolio

DDeveloping specific portfolio assets

Answer : D

Question 4

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?

AAll of the options

BEnsures benefits are comprehensively and holistically taken into consideration

CGuides the ongoing decisions as to which portfolio components should be added, terminated, or changed

DUsed as a decision framework to structure the portfolio components

Answer : D

Question 5

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:

AIssues with product support

BIdentifying and managing liabilities

CInteraction of component risks

DInconsistent processes

Answer : B

Question 6

Working as a portfolio manager in the Water Resources Department of the U.S. Geological Survey, you are following a scorecard approach to report progress to your executives on the components in your portfolio. You submit the scorecards monthly, and based on their results, your executives decide if a Portfolio Review Board meeting should be held. Your emphasis in these reports is to:

AChart progress toward strategic goals and objectives

BMeasure performance against targets and thresholds

CDisplay raw data in a visual graph

DDisplay data using a traffic light approach

Answer : A

Question 7

You are managing a large portfolio and know that you will need to constantly show the progress and status of the portfolio in meeting. For this you have developed a robust roadmap using BI tools. The portfolio roadmap is an important document used throughout the portfolio life cycle; when it comes to developing the portfolio communication management plan, which of the following options is correct

AThe portfolio roadmap helps with the understanding of the structure of the portfolio and interdependencies among the portfolio components

BThe portfolio roadmap is necessary for this process because it summarizes strategic objectives, evolving aspects of the strategy by organizational areas, portfolio milestones, dependencies, challenges, and risks

CThe portfolio roadmap provides a high-level timeline for expected portfolio component delivery

DThe portfolio roadmap provides the high-level strategic approach in a chronological fashion for portfolio management execution

Answer : A

PMI PfMP Portfolio Management Professional Exam Practice Test