Pass Portfolio Management Professional PfMP exam [Aug 06, 2022] Updated 495 Questions
PMI PfMP Actual Questions and 100% Cover Real Exam Questions
PMI PfMP Exam Syllabus Topics:
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NEW QUESTION 50
Your company works closely with the government on the implementation of water pumps for rural areas. You are constantly dealing with new and updated regulations, and periodically adapting the portfolio to the changes. When it comes to regulatory components, how do you include the components in the portfolio?
- A. Include them directly in the portfolio without categorization, ranking and scoring
- B. Normally categorize, score and rank the components and include them similar to any other component in the portfolio
- C. Reject them if they are not strategically aligned with the portfolio objectives
- D. Normally categorize, score and rank the components, however, include them in the final portfolio regardless of the results
Answer: D
Explanation:
Explanation
All components should be categorized, scored and ranked in order to be able to classify them and allocate appropriate resources to them. However, for the regulatory components, they should be added to the final portfolio no matter the results of their classification.
NEW QUESTION 51
What can you tell about the following portfolio status, having CPI weight = 80% and SPI weight = 20% Larger image
- A. Work is progressing as planned and within range
- B. Work is not preforming well but within range
- C. Work is progressing as planned but outside range
- D. Work is not performing well and outside of range
Answer: A
NEW QUESTION 52
As you prepare your communications management plan you realize that stakeholder requirements may change over time, and these changes then will need to be reflected in updates to the plan. As the plan defines the overall communication process not only for gathering information but also in determining recipients of it, it also:
- A. Sets expectations for effective stakeholder engagement
- B. Describes how and when to effectively conduct lessons learned meetings
- C. Sets expectations for the project team members
- D. Ensures continued confidence by all stakeholder groups as to their importance
Answer: C
NEW QUESTION 53
Based on the data in the following table, your organization should pursue which component:
- A. Component 2
- B. Component 1
- C. Component 3
- D. Component 5
Answer: A
NEW QUESTION 54
Risk management is an integral part of project, program and portfolio management and is invoked throughout the project, program and portfolio life cycle. When it comes to managing portfolio risks, which of the following activities is used
- A. Risk Response
- B. Risk Planning
- C. Risk Assessment
- D. Risk Assessment and Risk Response
Answer: D
Explanation:
Explanation
Risk planning is part of the develop risk management plan process. Risk assessment, risk response planning and risk response are part of the manage risk process
NEW QUESTION 55
As a portfolio manager you visit and re-do the Optimize Portfolio process continuously. Which of the following, in your opinion, is the objective/purpose of the Optimize Portfolio Process?
- A. Allocating resources to develop component proposals or execute portfolio components
- B. Make Governance Decisions
- C. Create an up-to-date list of qualified portfolio component
- D. Balance the portfolio for performance and value delivery
Answer: D
NEW QUESTION 56
You have been assigned as a consultant to give your expertise on a failing portfolio which is critical to the success of your client's organization. You are now in the process of reviewing the portfolio management plan.
What do you expect to see as part of this plan?
- A. Portfolio Justification, high-level scope and high-level timelines
- B. Vision for the portfolio, which is based on the alignment with the organization's goals and objectives
- C. The major components of the portfolio which are aligned chronologically to achieve portfolio value
- D. Balancing portfolio and managing dependencies
Answer: D
Explanation:
Explanation
The Vision for the portfolio, which is based on the alignment with the organization's goals and objectives, is part of the Portfolio Strategic Plan Portfolio Justification, high-level scope and high-level timelines are part of Portfolio charter The major components of the portfolio which are aligned chronologically to achieve portfolio value, are part of the Portfolio Roadmap The Portfolio Management Plan includes: Governance model ; Portfolio oversight; components roles and responsibilities; Managing strategic changes; Change control and management; Balancing portfolio and managing dependencies updates in the budget/funding and the resource allocation; Measuring and monitoring performance and value; Portfolio performance reporting and review; Communication model as part of the communication management plan; Portfolio risk management planning; Procurement procedures; Managing compliance; Portfolio prioritization model; Scope of the portfolio and the initial list of primary internal and external portfolio stakeholders
NEW QUESTION 57
Your portfolio management team is a bit confused about the order of steps to follow when defining a portfolio.
They have been having debates and they came to you asking for the correct order of steps
- A. Identification, categorization, scoring, ranking, prioritization, selection, resource allocation
- B. Identification, categorization, scoring, ranking, selection, prioritization, resource allocation
- C. Identification, selection, categorization, scoring, ranking, prioritization, resource allocation
- D. Identification, categorization, ranking, scoring, selection, prioritization, resource allocation
Answer: B
Explanation:
Explanation
You rank after scoring, you select after ranking and before prioritizing. Hence, the correct steps are Identification, categorization, scoring, ranking, selection, prioritization, resource allocation
NEW QUESTION 58
One of the major steps for a portfolio manager is to know which components qualify to be included in the mix of components that will achieve the strategic objectives sought by the portfolio. As a program manager, you will use a variety of methods to help you achieve this purpose. Which of the following are valid tools and techniques?
- A. Weighted Ranking and scoring techniques, Portfolio Component inventory, Categorization
- B. Integration of Subsidiary Plans, Organizational Structure Analysis, Elicitation techniques
- C. Capability & Capacity Analysis, Weighted Ranking and scoring techniques, Graphical Analytical Methods, Quantitative & Qualitative Analysis
- D. Capability & Capacity Analysis, Weighted Ranking and scoring techniques, Graphical Analytical Methods, Quantitative & Qualitative Analysis, PMIS
Answer: A
NEW QUESTION 59
You have just finalized aggregating value from the ongoing components to present a consolidated report to the governance board, in addition to recommending changes to portfolio and information to enable a better decision making. You are now looking for a place to document updates including new measures, reports and processes for effective ongoing management of the portfolio value. In which of the following documents are these measures included?
- A. Portfolio Reports
- B. Portfolio Management Plan updates
- C. Portfolio Process Assets updates
- D. Portfolio updates
Answer: B
Explanation:
Explanation
Let us first position ourselves, Page 96 - 6.3 define the Process for "Manage Portfolio Value" as the one depicted in this scenario. In addition, the scenario states that you have finalized this process, so we are looking at an output that documents the new measures, reports, etc.
New measures, reports and processes for effective ongoing management of the portfolio value are part of the portfolio performance management plan which is a subsidiary plan of the portfolio management plan, and which is updated as a result of the process in question
NEW QUESTION 60
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
- A. Authorizing the portfolio
- B. All of the options
- C. Developing specific portfolio assets
- D. Initiating the portfolio
Answer: C
NEW QUESTION 61
Enterprise environmental factors (EEFs) may constrain portfolio management options and may have a positive or negative influence on the outcome. Which of the following is not considered part of the EEFs?
- A. Component Managers Roles and Responsibilities
- B. Personnel administration
- C. Existing human resources
- D. Stakeholder risk tolerances
Answer: A
Explanation:
Explanation
Enterprise environmental factors may constrain portfolio management options and may have a positive or negative influence on the outcome. Enterprise environmental factors include, but are not limited to:
Organizational governance processes, culture, and detailed hierarchy structure; Legal constraints; Governmental or industry standards (e.g., regulatory agency regulations, codes of conduct, product standards, quality standards, and workmanship standards); Infrastructure (e.g., existing facilities and capital equipment); Existing human resources (e.g., skills, disciplines, and knowledge, such as design, development, law, contracting, and purchasing); Personnel administration (e.g., hiring and firing guidelines, employee performance reviews, and training records); Marketplace conditions; Portfolio management information system (i.e., tools, manual or automated, for information collection and distribution to support the portfolio management processes); Commercial databases (e.g., standardized cost estimating data, industry risk study, and information and risk databases); Organizational project management; and Stakeholder risk tolerances
NEW QUESTION 62
Due to multiple occurrences of risk realization, the CEO has asked you to re-assess the portfolio risks once again. Up to what level in the organization do you go when you need to assess risks?
- A. All Organizational Levels
- B. Functional
- C. Internal to the portfolio
- D. Operational
Answer: A
Explanation:
Explanation
Risks are external and Internal and tend to span across all organizational levels. When a portfolio manager needs to assess risks, he/she will need to pass by all organizational levels
NEW QUESTION 63
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 know that the purpose of using the balanced scorecards is
- A. Measure performance against goals
- B. Translate a high level strategic plan into an operational action plan
- C. Bring a feedback loop to strategic planning
- D. All of the options
Answer: D
NEW QUESTION 64
In a portfolio you have a continuous interaction between the portfolio and its components. You have to follow a lot of processes and procedures in order to reach a satisfactory result. In your opinion as a portfolio manager, who guides the portfolio team to follow the processes, metrics, and other procedures in the portfolio?
- A. Company's CEO
- B. Portfolio Manager
- C. Portfolio Management Office
- D. Portfolio Sponsor
Answer: B
Explanation:
Explanation
This is a tricky question. You should note here that the portfolio sponsor is responsible and accountable for the success of the portfolio, however, a portfolio sponsor is normally an executive who has a lot of obligations and does not have the luxury of time such as the portfolio manager to follow up regularly on the team. The sponsor follows up with the portfolio manager on the progress and only intervenes in the case where there is a big issue that the portfolio manager or the steering committee can not solve. Thus, the person who guides the portfolio team should be the portfolio manager because the portfolio manager, in contradiction to what others may think of, manages and guides the portfolio team to execute the different processes. Portfolio Manager is the right answer for this question
NEW QUESTION 65
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. Response Strategy Selection
- B. Fallback Plan
- C. Scenario Analysis
- D. Strategies for both threats and opportunities
Answer: B
Explanation:
Explanation
Strategies may include: response strategy selection, strategies for both threats and opportunities, and scenario analysis. The risk owner may develop a fallback plan for execution if the selected strategy is not sufficiently effective. So the fallback plan is a result of a failed strategy
NEW QUESTION 66
starting with the business unit you lead, which is responsible for new products, and then will set the stage to implement it throughout the bank, including at the enterprise level. You have executive support and commitment to implement it in your business unit. A key first step is to:
- A. Prioritize the work to be done
- B. Set up a governance structure
- C. Prepare a portfolio performance plan
- D. Define roles and responsibilities for implementation
Answer: D
NEW QUESTION 67
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?
- A. Used as a decision framework to structure the portfolio components
- B. Guides the ongoing decisions as to which portfolio components should be added, terminated, or changed
- C. All of the options
- D. Ensures benefits are comprehensively and holistically taken into consideration
Answer: A
NEW QUESTION 68
The Portfolio Management Office plays an integral role in Portfolio Management and offers support to the portfolio manager throughout the portfolio life cycle. What is the role of the PMO with respect to the portfolio performance metrics?
- A. PMO should be prepared to develop new metrics when appropriate and delete or change metrics that are no longer relevant
- B. The Portfolio Manager develops and updates the portfolio metrics and the PMO approves them
- C. PMO should work hand in hand with the governance board to approve the performance metrics
- D. PMO does not have a role in the development or update of performance metrics; it should only offer support to Portfolio Manager with the needed templates to develop metrics
Answer: A
NEW QUESTION 69
Assume you are the portfolio manager for your HVAC (Heating, Ventilating, and Air Conditioning) company, one of the largest in the world. Preparing for a meeting with the Portfolio Governance Committee, you have been reviewing the success of components that have been completed as well as the progress of current portfolio components. In many cases people who only purchased heating units in the northern part of the country, and people who purchased only air conditioners in the south, now are buying state-of the art products to easily switch as needed. You found the risks of climate change led to the need for these new energy efficient products and did so by:
- A. Trend analysis
- B. Sensitivity analysis
- C. Investment choices
- D. Ranking and scoring techniques
Answer: A
NEW QUESTION 70
You are currently using a Comparative Advantage Analysis and conducting a what-if analysis to consider how the portfolio component and its intended benefits could be achieved by various options, including resource capability and capacity mix. In which process are you currently working?
- A. Manage Portfolio Value
- B. Manage Supply & Demand
- C. Manage Portfolio Information
- D. Optimize Portfolio
Answer: A
Explanation:
Explanation
The comparative advantage analysis is one of the methods used in value scoring and measurement analysis performed as one of the tools and techniques of the manage portfolio value process. Other methods used in this tool and technique are: scoring models, cost-benefit analysis, progress measurement and value measurement techniques, and portfolio efficient frontier
NEW QUESTION 71
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. Organizational Risk, Image and Public Relation Risk
- B. All of the options
- C. Performance Risk, Regulatory Risk
- D. Portfolio Component Risk, Market Risk
Answer: C
Explanation:
Explanation
Risk Categories include: Portfolio Component Risk, Market Risk, Organizational Risk, Image and Public Relation Risk, Performance Risk, Regulatory Risk, Financial/Budget Risk, Resource Risk
NEW QUESTION 72
It is critical in portfolio management to focus on 'doing the right work'. This means stakeholder expectations and effective management of these expectations are essential. The primary conduit between the component managers and the other portfolio stakeholders is the:
- A. Chairperson of the Portfolio Review Board
- B. Program or project sponsor
- C. Secretary of the Portfolio Review Board
- D. Portfolio manager
Answer: D
NEW QUESTION 73
One of the junior portfolio managers learned that she needs to use the roadmap as an input to the portfolio management plan development. She does not understand why, and she came to you for advice. What is your advice to her?
- A. Roadmap is not an input to this process
- B. Roadmap contains the portfolio structure which is used to structure the components for management through the portfolio management plan
- C. High-level timelines in roadmap are used to define low-level schedule and timelines for portfolio components
- D. Roadmap provides the prioritization model to the portfolio management plan
Answer: C
Explanation:
Explanation
The prioritization model is provided by the strategic plan; portfolio structure is provided by the charter; the correct option as per the standard is that high-level timelines in roadmap are used to define low-level schedule and timelines for portfolio components
NEW QUESTION 74
All measurements in a Portfolio are done in correspondence to Key Performance Indicators (KPIs), and defining those KPIs is essential and should be done by highly capable personnel. Which of the following is true regarding who prepares KPIs and which party approves them?
- A. Portfolio Management team and Portfolio Manager
- B. Portfolio Management Team does both
- C. Governance team and Executives
- D. Portfolio Manager and Steering Committee
Answer: C
NEW QUESTION 75
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