20 PMI-PfMP Free Questions and Answers (Part - 2)

This post is in continuation of the earlier series of questions for the PfMP® examination. I would strongly recommend that you take both the parts together when you try to attempt the questions. 

These are not verbatim questions from the PfMP exam. Nevertheless, a lot of thought, understanding and also pain have gone in preparing the questions. 

These questions cover the areas needed for the exam. The questions are based on the Standard for Portfolio Management, Standard for Risk Management in Portfolios, PfMP Examination Content Outline (ECO) and other reference books (PMI list) for the PfMP exam.

In this part, we will have the final 10 questions of the series.

These questions are from the newly released book:

I Want To Be A PfMP, the plain and simple way

Again, I sincerely hope you enjoy doing these PfMP questions, and it helps in your PfMP exam preparation.

[This series: Part - 1] 

Subscribe to the site (top-right corner) for fresh updates.

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PMI-PfMP QUESTIONS (Part – 2)

Question – 11: After authorizing the portfolio components, you have documented the governance decision in the portfolio reports. Now, you want to communicate the decisions to the key stakeholders. Which tool or technique will be most effective?

A Portfolio authorization technique

B Portfolio management information system

C Portfolio review meetings

D Communication requirements analysis 

Question – 12: You are doing a number of surveys and also conducting questionnaires with stakeholders to provide monitoring and control for the portfolio. This is known as:

A Elicitation

B Requirement gathering

C Using communication methods

D Employing communication vehicles

Question – 13: While optimizing the portfolio, you want to know the top risks associated with the portfolio components and any potential issues that may arise due to implementation. Which one will help you the most for this analysis?

A Portfolio risk reports

B Portfolio issue reports

C Portfolio capacity reports

D Portfolio performance reports

Question – 14: The portfolio strategic plan has:

A Portfolio vision, goals, objectives, success criteria, scope and resources

B Measurable goals and objectives, portfolio benefits, key risks, assumptions, constraints, and dependencies

C High-level scope, high-level budget, key and initial stakeholders, assumptions and constraints, high-level risks

D Governance model, prioritization model, portfolio oversight, portfolio structure

Question – 15: Portfolio management is not only getting the right components and related investment decisions, but also considering the risks involved and building a risk-adjusted portfolio. For this, a portfolio manager can use many investment choice tools, but:

A Market-payoff variability analysis

B Probability or probabilistic analysis

C Performance variability analysis

D Time-to-market variability analysis

Question – 16: Traffic light colors such as red, yellow, green, and blue, along with milestone markers are used to display component status for the entire portfolio. This report is:

A Portfolio Resource Utilization Report

B Portfolio Performance Variance Report

C Portfolio Funnel Chart or Burndown/Burnup Chart

D Portfolio Resource Capacity and Capability Report

Question – 17: You are taking raw data or information without full context and putting it into reports with context, which holds values for the recipients. It's:

A Qualitative and Quantitative (Q&Q) Analysis

B Capability and Capacity (C&C) Analysis

C Communication Requirement Analysis

D Stakeholder Analysis

Question – 18: Your sponsor is concerned about all the portfolio risks, including the various sources of uncertainties. A colleague, who is a certified PfMP has advised you to develop a portfolio risk exposure chart, because this chart shows:

A Internal risks and external risks

B Portfolio risks, Component risks and Overall risks

C Structural risks and Execution risks

D Technical risks, Management risks and Portfolio risks

Question – 19: As you pre-screen, identify and categorize the portfolio components, you are using a number of component descriptors. However, which one of the following is not a portfolio component descriptor?

A Quantitative benefits

B Qualitative benefits

C Alignment for strategy 

D Portfolio component customer

Question – 20: Currently, you are developing a key deliverable which provides the high-level graphical timeline, mapping of portfolio components, and internal and external dependencies. For this purpose, you are looking for a simple prioritization model with criteria such as strategic alignment, financial benefits, financial costs, risk, and dependencies. What should you do?

A Check the Portfolio Charter

B Take the prioritization model from the Portfolio Management Plan

C Refer to the prioritization model of the Portfolio Strategic Plan

D Seek guidance from the Portfolio Governing Body

[This series: Part - 1]

Subscribe to the site (top-right corner) for fresh updates.

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The question set is available in the embedded document below. The answers are also part of this document.

For all answers with detail explanation, subscribe to this site and send a mail (from your GMail id) to managementyogi@gmail.com.

PfMP Live Lessons - Guaranteed Pass:

• PfMP LIVE LESSONS: Guaranteed Pass or Your Money Back

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• PfMP Online Exam Prep: With Full Money-Back Guarantee

Book  for PfMP exam:

• Book for PfMP Exam Prep: I Want To Be A PfMP

20 PMI-PfMP Free Questions and Answers (Part - 1)

 

The Portfolio Management Professional (PfMP®) is the highest-level certification offered by the Project Management Institute (PMI®). 

In fact, it is an elite certification. Very few have earned this certification.

To earn this certification, you need the right content, material, course of action and above all, high-quality questions, which will test your ability and understanding with respect to portfolio management.  

In this post series, we will have 20 PMI-PfMP questions. These questions are prepared with inputs from successful PfMPs, current portfolio management practitioners, and referring to practices used by portfolio management software tools. 

The Standard(s) for Portfolio Management, the Standard for Risk Management in Portfolios, the PfMP Exam Content Outline (ECO) and certain other key reference books have been primarily referred to prepare the questions.

To answer these questions, you need to have:

• Solid foundation on Portfolio Management, which is based upon the Standard for Portfolio Management from PMI. 
• Sound understanding of portfolio management process interactions, across the process groups and knowledge areas. 
• Absolute clarity on various inputs, tools and techniques (ITTOs) of the various portfolio management processes. 
• Real-world portfolio management experience.
• Ability to apply portfolio management theory/concepts in various contexts, scenarios and situations.

This is the first of the series, where you will have 10 questions. The next part will have another set of 10 questions.

These questions are from the newly released book:

I Want To Be A PfMP, the plain and simple way

I sincerely hope you enjoy doing these PfMP questions. And it helps in your preparation for the PfMP exam.

[This series: Part - 2 ] 

Subscribe to the site (top-right corner) for fresh updates. 

*********

PMI-PfMP QUESTIONS (Part – 1)

Question – 1: The key deliverables in portfolio management processes are:

A Portfolio Strategic Plan, Portfolio Management Plan, Portfolio Risk Management Plan, Portfolio Performance Management Plan

B Portfolio Strategic Plan, Portfolio Charter, Portfolio Roadmap, Portfolio Management Plan, Portfolio

C Portfolio Charter, Portfolio Management Plan, Portfolio Strategic Plan, Portfolio Risk Register, Portfolio Issue Register/Log, Portfolio Benefits Realization Plan

D Portfolio Documents, Portfolio Process Assets, Portfolio Reports, Portfolio Management Plan

Question – 2: A new portfolio manager has joined the PfMO and is currently struggling to bring the portfolio and its components to authorization. As you are a certified PfMP, she approaches you to understand the proper sequence of steps of components till authorization. Which one of the following would be your advice?

A Identification, Selection, Prioritization, Scoring, Balancing and Optimizing of portfolio components

B Pre-screening, Identification, Selection, Balancing, Evaluation, Authorizing of portfolio components

C Identification, Categorization, Scoring and Ranking, Evaluation, Selection, Prioritization, and Balancing of portfolio components

D Pre-screening, Selection, Identification, Categorization, Balancing and Authorization of portfolio components

Question – 3: To manage supply and demand, you are determining what would happen if human resources, equipment, or funding were increased or decreased, or if constrained resources were not available. This is an example of:

A What-if analysis

B SWOT analysis

C Comparative advantage analysis

D Scenario analysis

Question – 4: Your organization is quite new to organized portfolio management and the current software system available is not robust. The strategic management head wanted your view on it. You suggest proceeding because in a less mature organization, the Portfolio Management Information System (PfMIS) is a:

A A set of automated and/or manual tools

B A document depository with version and configuration control systems

C A collection of spreadsheets or other portfolio documents

D A set of systems, processes and tools

Question – 5: After you complete the ‘communication requirements analysis’ while developing the Portfolio Communication Management Plan, you document it in a:

A Stakeholder Communication Strategy Matrix

B Stakeholder Matrix

C Communication Matrix

D Stakeholder Engagement Matrix

Question – 6: You want to find out the gaps in investment within the portfolio as a whole. Which T&T will be used?

A Qualitative analysis

B Quantitative analysis

C Monte Carlo simulation

D Investment choice analysis

Question – 7: A portfolio manager (PfM) is analyzing to define the benefits that will be provided by the portfolio components and compare them to the costs of the portfolio components to build a chronological view of the components. Benefits may be qualitative or quantitative. What is the PfM doing?

A Cost-benefits analysis in Develop Portfolio Roadmap process

B Cost-benefits analysis in Optimize Portfolio process

C Cost-benefits analysis in Manage Portfolio Value process

D Cost-benefits analysis with Portfolio Efficient Frontier in Optimize Portfolio process

Question – 8: In a meeting, the portfolio sponsor suggested adding, modifying as well as terminating (cancellation) some of the components due to strategy updates. You, the portfolio manager, is not very sure and want to compare the pre-existing components with the new components to ensure strategic alignment. What analysis will help you?

A Strategic alignment analysis

B Stakeholder analysis

C Gap analysis

D Value measurement and scoring analysis

Question – 9: A portfolio manager is checking the components available and deciding whether the component should be part of the portfolio. To be part of the portfolio, components should have a minimum size or budget of $500,000. What is the portfolio manager doing?

A Using the weighted ranking and scoring technique

B Applying the portfolio component categorization technique

C Identifying and categorizing the portfolio components

D Using the T&T of portfolio component inventory

Question – 10: Currently, you are checking a list of portfolio components which are to be deactivated and terminated. With it, you want to return the remaining funding and resources to be returned to the resource pool and funding of the organization. What are you doing?

A Building a balanced, optimized and approve set of components for the portfolio

B Applying authorization techniques for the portfolio and its components

C Clearly defining the portfolio components and segregating the active and inactive components

D Authorizing the portfolio and/or its components

[This series: Part - 2 ] 

Subscribe to the site (top-right corner) for fresh updates. 

 

*********

The question set is available in the embedded document below. The answers are also part of this document.

For all answers with detail explanation, subscribe to this site and send a mail (from your GMail id) to managementyogi@gmail.com.

PfMP Live Lessons - Guaranteed Pass:

• PfMP LIVE LESSONS: Guaranteed Pass or Your Money Back

PfMP Online Exam Prep - With Money-Back Guarantee:

• PfMP Online Exam Prep: With Full Money-Back Guarantee

Book  for PfMP exam:

• Book for PfMP Exam Prep: I Want To Be A PfMP