PMI Portfolio Management Professional PfMP Exam Questions in PDF

Free PMI PfMP Dumps Questions (page: 8)

As the portfolio manager in the third largest automotive manufacturer in your country, you have a large number of components especially new vehicles each year but also support for dealers, advertising, maintaining the brand image, increasing market share plus continuous improvement initiatives. You have contingency reserve to use to prepare to handle any risks that may occur, which is based on:

  1. Expected monetary value
  2. Return on investment
  3. Expected financial benefits
  4. Equity protection

Answer(s): D



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?

  1. Company's CEO
  2. Portfolio Management Office
  3. Portfolio Sponsor
  4. Portfolio Manager

Answer(s): D



Portfolio balancing can be done in several different dimensions based on organizational preferences. When your software development company, which is CMMI Level 5 certified, began to focus on portfolio management four years ago, you started with a simplified ranking approach and now moved into using an automated, sophisticated weighted scoring software tool throughout the organization. In terms of portfolio balancing, it is appropriate
to:

  1. Balance the portfolio across the organization
  2. Balance the portfolio according to categories
  3. Balance the portfolio by business unit
  4. Balance the portfolio in terms of expected value of benefits

Answer(s): A



Working previously in the financial industry and studying finance and risk in graduate school, you are familiar with Markowitz's Efficient Frontier theory. Now assume you are the portfolio manager for a state government agency. Your agency has a reputation of being risk adverse but given recent budget cuts, you have convinced your executive team it needs to pursue some new programs and projects to demonstrate its benefits to the state.

You decided to apply the Efficient Frontier concepts to show them the current state of its components in terms of risk and associated costs. You explained the portfolio is efficient if it has:

  1. A mix of components--from high risk/high return to low risk/low return
  2. The ability to quantify the value of risk in monetary terms
  3. The possible overall portfolio value with the greatest possible benefits
  4. The best possible expected level of return for its level of risk

Answer(s): D



As part of developing the Communication Management Plan, a portfolio manager executes the Communication Requirements Analysis, in addition to Stakeholders Analysis. Which of the following options in your opinion is a result of the Stakeholders Analysis?

  1. All of the options
  2. Communication Matrix
  3. Communication Strategy matrix
  4. Elicitation technique

Answer(s): D



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