PfMP Practice Test 16 — 15 Questions

Question 1

You are assessing the 'risk-return' profile of your portfolio. What does this mean in the context of strategic alignment?

Accepted Answer

Balancing high-risk/high-reward initiatives with low-risk/low-reward ones to meet strategic objectives.. This involves balancing the portfolio to ensure the aggregate risk level is acceptable given the expected strategic returns.

Answer

Only investing in low-cost projects.

Answer

Avoiding all new technology projects.

Answer

Ensuring all projects have zero risk.

Question 2

Which THREE of the following are key inputs when developing a portfolio roadmap?

Accepted Answer

Organizational strategic goals.. Roadmaps depend on strategy, capacity, and the current portfolio mix.

Answer

Employee names.

Answer

The local cafeteria menu.

Question 3

Which TWO of the following are examples of 'operational planning' in a portfolio context?

Accepted Answer

Managing equipment maintenance logs.. Operational planning deals with the day-to-day execution and resource management within the portfolio.

Answer

Deciding on an acquisition strategy.

Answer

Formulating the company's 10-year vision.

Answer

Redefining the organization's core values.

Question 4

What is the primary purpose of a portfolio strategic plan?

Accepted Answer

To define the roadmap for achieving organizational strategic objectives.. The strategic plan maps out how the portfolio will achieve the organization's vision through specific initiatives.

Answer

To serve as a budget tracking tool only.

Answer

To list all team members' contact information.

Answer

To document daily project management tasks.

Question 5

What is the primary benefit of conducting a capability analysis?

Accepted Answer

It ensures the organization has the necessary resources to deliver strategic value.. Capability analysis identifies whether the organization has the skills and structures to execute the portfolio strategy.

Answer

It automatically adjusts the budget.

Answer

It creates a list of project risks.

Answer

It reduces the project management staff.

Question 6

When selecting portfolio components, why is 'strategic weighting' used?

Accepted Answer

To ensure that high-impact components are prioritized over low-impact ones.. Strategic weighting helps evaluate components relative to their impact on key strategic goals.

Answer

To keep all projects under the same budget.

Answer

To determine project managers' bonuses.

Answer

To complicate the selection process.

Question 7

What is the primary objective of balancing the portfolio?

Accepted Answer

To achieve a mix of components that maximizes strategic goals within constraints.. Portfolio balancing ensures a mix of initiatives that optimize returns while managing risk.

Answer

To document all project risks.

Answer

To make the project schedule as short as possible.

Answer

To keep all project managers happy.

Question 8

A portfolio manager is asked to include a project that is not aligned with the current strategy but is sponsored by a high-ranking executive. How should the manager handle this?

Accepted Answer

Evaluate the project against the strategic criteria and present the findings to the executive.. Portfolio managers must maintain integrity by evaluating all projects against the agreed-upon strategic criteria.

Answer

Refuse to speak to the executive.

Answer

Change the strategy to match the project.

Answer

Add it immediately to satisfy the executive.

Question 9

How does capacity analysis support strategic alignment?

Accepted Answer

It validates that the organization has the bandwidth to achieve strategic goals.. Capacity analysis ensures that the organization has the resources required to deliver on the strategy.

Answer

It determines the project management salary.

Answer

It removes the need for prioritization.

Answer

It automates the project selection process.

Question 10

What is the primary goal of the 'portfolio selection' process?

Accepted Answer

To select components that provide the best alignment and value to the organization.. Selection ensures that the best components are chosen to achieve the organizational strategy.

Answer

To select projects that are fun to manage.

Answer

To select the most expensive projects.

Answer

To select the projects with the shortest duration.

Question 11

Which TWO of the following steps are part of the capacity analysis process?

Accepted Answer

Assessing the available supply of resources.. Capacity analysis involves measuring supply and demand and identifying the gap.

Answer

Organizing the company picnic.

Answer

Updating the company website.

Answer

Reviewing employee vacation requests.

Question 12

Which document formally authorizes the existence of the portfolio and provides the portfolio manager with the authority to apply resources?

Accepted Answer

Portfolio charter.. The portfolio charter is the document that authorizes the portfolio manager and sets the boundaries.

Answer

Project charter.

Answer

Business case.

Answer

Portfolio strategic plan.

Question 13

Which THREE items are typically included in a portfolio strategic plan?

Accepted Answer

Success metrics for the portfolio.. A strategic plan details the strategic intent, the components, and the metrics for success.

Answer

List of employee birthdays.

Answer

The office emergency exit map.

Question 14

What is the purpose of the 'Portfolio Roadmap'?

Accepted Answer

To provide a high-level timeline of when strategic benefits will be delivered.. The roadmap visualizes the sequencing and timing of components to ensure strategic objectives are met over time.

Answer

To list the office holiday schedule.

Answer

To track daily task assignments.

Answer

To serve as an audit trail for project expenses.

Question 15

Which of the following is a component of a portfolio?

Accepted Answer

Projects, programs, and operational work.. A portfolio consists of projects, programs, sub-portfolios, and operations that are managed to achieve strategic objectives.

Answer

Only large-scale projects.

Answer

Only software development tasks.

Answer

Only administrative meetings.