PfMP Practice Test 18 — 15 Questions

Question 1

Which THREE actions should a portfolio manager take when initiating a portfolio audit?

Accepted Answer

Identify the scope and objectives of the audit.. Option A is correct because defining the scope and objectives is the essential first step of any audit, establishing what the portfolio audit will cover, its boundaries, and the specific goals it must achieve. Option B is correct because assembling a competent audit team and collecting the necessary data (such as portfolio holdings, performance records, and compliance documentation) provides the resources and evidence required to conduct the audit effectively. Option D is correct because communicating the audit's purpose upfront and its findings afterward to relevant stakeholders ensures transparency, buy-in, and appropriate follow-up action on the results. Option C is incorrect because skipping the planning phase undermines the audit's structure and typically leads to missed risks and unreliable conclusions. Option E is incorrect because using an untrained intern to conduct the entire audit violates competence and objectivity requirements, compromising the audit's quality and credibility.

Answer

Skip the planning phase to save time.

Answer

Use an untrained intern to conduct the entire audit.

Question 2

Which TWO of the following are examples of portfolio-level governance activities?

Accepted Answer

Monitoring portfolio strategic alignment.. Option A is correct because monitoring portfolio strategic alignment is a core portfolio-level governance activity: governance ensures the portfolio as a whole continues to support organizational strategy, which requires ongoing oversight of how components map to strategic objectives. Option E is correct because defining portfolio performance metrics is also a governance responsibility at the portfolio level, establishing the measures (e.g., value delivery, risk exposure, resource utilization) by which the portfolio's performance and investment decisions are evaluated. The remaining options are operational or tactical rather than governance activities: ordering office supplies (B) is administrative procurement, updating individual test cases (C) is a project-level testing task, and writing project source code (D) is a project execution activity, none of which involve portfolio-wide direction, oversight, or decision-making.

Answer

Ordering office supplies for the team.

Answer

Updating individual test cases.

Answer

Writing project source code.

Question 3

Which TWO items are needed for effective portfolio component authorization?

Accepted Answer

A well-defined business case.. Option D, a well-defined business case, is required because portfolio component authorization depends on documented justification of the component's expected value, costs, risks, and strategic alignment before it can be approved or rejected. Option E, resource capacity analysis, is also required because even a strong business case cannot be authorized if the organization lacks the people, budget, or skills to deliver the component without harming other portfolio work. The company's 1950 mission statement (A) is outdated and not a valid authorization input, a catering contract (B) is irrelevant to portfolio governance, and a project manager's social security number (C) is sensitive personal data that has no role in component authorization.

Answer

The company's mission statement from 1950.

Answer

A signed contract with a local catering company.

Answer

The project manager's social security number.

Question 4

Which THREE of the following are essential when building a 'Portfolio Strategic Plan'?

Accepted Answer

Assessment of portfolio constraints.. Option C (Assessment of portfolio constraints) is essential because a Portfolio Strategic Plan must identify the boundaries within which the portfolio operates — budget limits, resource capacity, regulatory requirements, and time constraints — so that strategic choices remain feasible and realistic. Option D (Definition of portfolio objectives) is essential because the plan must state measurable goals and outcomes the portfolio is meant to achieve, providing the criteria against which component projects and programs are selected, prioritized, and evaluated. Option E (Alignment with organizational vision) is essential because the portfolio exists to deliver the organization's strategic intent, so every objective and investment decision must trace back to and support the broader organizational vision and mission. Option A does not belong because team members' home addresses are personal data irrelevant to strategic portfolio planning, and Option B does not belong because detailed breakdowns of individual project tasks belong to project-level planning artifacts such as the work breakdown structure, not to the strategic portfolio plan.

Answer

Listing of all team members' home addresses.

Answer

Detailed breakdown of individual project tasks.

Question 5

Which THREE of the following are quantitative analysis techniques?

Accepted Answer

Decision tree analysis.. Decision tree analysis (B) is a quantitative technique because it assigns monetary values and probabilities to branches to compute expected monetary value (EMV) for each alternative. Monte Carlo analysis (C) is quantitative because it runs repeated random simulations of cost or schedule variables to produce a probabilistic distribution of outcomes, such as a confidence level for completing within budget. Sensitivity analysis (D) is quantitative because it numerically varies one input at a time (e.g., a tornado diagram) to measure how much each variable affects the outcome. SWOT analysis (A) is a qualitative strategic assessment of strengths, weaknesses, opportunities, and threats, and brainstorming (E) is a qualitative group idea-generation technique, so neither relies on numerical modeling.

Answer

SWOT analysis.

Answer

Brainstorming.

Question 6

Which TWO of the following should be included in a 'Portfolio Status Report' for senior leadership?

Accepted Answer

Portfolio-level risk summary.. Option C, the portfolio-level risk summary, belongs in a Portfolio Status Report for senior leadership because executives need an aggregated view of risks across all projects to make informed governance and investment decisions rather than reviewing project-level detail. Option E, the overall portfolio strategic alignment status, is correct because senior leadership's primary concern is whether the portfolio as a whole continues to deliver against organizational strategy and business objectives. Options A and B are incorrect because individual daily task lists and detailed bug logs are operational, project-level artifacts that are far too granular for an executive portfolio report. Option D is incorrect because an office kitchen renovation budget is a facilities matter unrelated to portfolio performance or strategic delivery.

Answer

Individual daily task lists of all staff.

Answer

Detailed log of all individual bugs.

Answer

Office kitchen renovation budget.

Question 7

Which TWO of the following are techniques for portfolio balancing?

Accepted Answer

Bubble charts (Risk vs. Return).. Bubble charts (Risk vs. Return) are a recognized portfolio balancing technique because they visually plot each initiative or investment along risk and return axes, letting management compare and rebalance the portfolio mix for optimal value. Resource load analysis is also a valid balancing technique since it examines how demand for people, budget, and skills is distributed across projects, revealing over- or under-allocation that must be adjusted to keep the portfolio feasible. The remaining options do not belong: office social media activity (A) is a communications or marketing task, cafeteria waste management reports (C) are facilities/operations data, and employee performance surveys (E) are HR appraisal tools, none of which assess or adjust the risk, return, or resource balance of a project portfolio.

Answer

Office social media activity.

Answer

Cafeteria waste management reports.

Answer

Employee performance surveys.

Question 8

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

Accepted Answer

Success metrics for the portfolio.. A portfolio strategic plan defines how the portfolio will deliver value, so it must state the portfolio strategic objectives (option E), which express the long-term goals the portfolio exists to achieve and align components with organizational strategy. It must also include a list of prioritized components (option C), since the plan ranks projects, programs, and other work based on value, risk, and strategic fit to guide investment and resource decisions. Success metrics for the portfolio (option A) are likewise essential, as they provide measurable KPIs and targets used to track whether the portfolio is meeting its strategic objectives and to support governance and rebalancing. The remaining options do not belong: a list of employee birthdays (B) is an HR or team-calendar detail with no strategic relevance, and an office emergency exit map (D) is a facilities and safety artifact unrelated to portfolio strategy.

Answer

List of employee birthdays.

Answer

The office emergency exit map.

Question 9

Which THREE criteria are often used to prioritize portfolio components?

Accepted Answer

Urgency/Time criticality.. Option A (Urgency/Time criticality) is correct because portfolio prioritization commonly weighs how time-sensitive a component is, such as regulatory deadlines, market windows, or dependencies that make delay costly. Option B (Strategic value contribution) is correct because components are ranked by how directly they advance organizational strategy, including revenue growth, competitive advantage, or mission alignment. Option C (Resource availability/feasibility) is correct because even high-value work must be assessed against whether the required people, budget, skills, and technology can realistically be committed. The unmarked options do not belong: Option D (folder color) is an arbitrary administrative attribute with no bearing on portfolio value or risk, and Option E (length of the project manager's title) is an organizational vanity metric unrelated to prioritization criteria.

Answer

The color of the project file folders.

Answer

The length of the project manager's title.

Question 10

Which TWO of the following are appropriate portfolio risk response strategies for threats?

Accepted Answer

Mitigation.. Mitigation (C) is a correct threat response strategy because it reduces the probability and/or impact of a threat through proactive actions, such as implementing controls or contingency plans. Avoidance (D) is also correct because it eliminates the threat entirely by changing the portfolio scope, approach, or requirements so the risk no longer applies. Enhancement (A) is not a threat response; it is an opportunity response that aims to increase the probability or impact of a positive risk. Sharing (B) is an opportunity response (e.g., partnering to capture upside), not a standard threat strategy, though threat transference is sometimes confused with sharing. Ignoring (E) is not a recognized risk response strategy; threats must be actively addressed or accepted, not simply ignored.

Answer

Enhancement.

Answer

Sharing.

Answer

Ignoring.

Question 11

Which TWO of the following are primary benefits of maintaining a well-aligned portfolio?

Accepted Answer

Improved resource allocation efficiency.. Option A (Improved resource allocation efficiency) is correct because a well-aligned portfolio ensures that limited resources—people, budget, and time—are directed toward the initiatives that best support organizational strategy, reducing duplication and waste. Option B (Increased probability of achieving strategic objectives) is correct because portfolio alignment explicitly links projects and programs to strategic goals, so execution effort is concentrated on work that advances those goals, raising the likelihood of success. Option C is not correct because morale is not a guaranteed outcome in every case; it depends on many factors beyond portfolio alignment. Option D is not correct because portfolio management is not a headcount-reduction tool, and reducing employees is not a primary benefit. Option E is not correct because office rent is an operational facility cost unrelated to portfolio alignment benefits.

Answer

Higher project team morale in every case.

Answer

Reduced total number of employees.

Answer

Lower office building rent.

Question 12

Which THREE factors can lead to the misalignment of a portfolio?

Accepted Answer

Lack of clear performance metrics.. Option A (Lack of clear performance metrics) is correct because without defined KPIs, benefit-realization measures, and reporting thresholds, portfolio components cannot be objectively evaluated against strategic objectives, so investment decisions drift out of alignment. Option B (Poor portfolio governance) is correct because weak governance means no effective investment review board, stage-gate, or prioritization authority to rebalance, approve, or terminate initiatives, allowing misalignment to persist unchecked. Option D (Changing organizational strategic goals) is correct because when enterprise strategy shifts, the portfolio's existing projects, budgets, and resource allocations become misaligned unless the portfolio is formally re-prioritized and rebalanced. Options C (the color of the office carpet) and E (the choice of coffee brand) are irrelevant workplace trivia with no causal relationship to portfolio strategy, governance, or performance measurement, so they cannot cause portfolio misalignment.

Answer

The color of the office carpet.

Answer

The choice of coffee brand.

Question 13

During capacity analysis, you identify a resource bottleneck that prevents the realization of a key strategic benefit. What should be your next step?

Accepted Answer

Reprioritize the portfolio components to focus resources on the most strategic initiatives.. When a resource bottleneck threatens a key strategic benefit, the portfolio manager should reprioritize components to redirect resources toward the most strategically valuable initiatives. This aligns capacity with strategy and is the core purpose of capacity analysis — ensuring the portfolio can actually deliver its intended benefits.

Answer

Hire external contractors immediately without approval.

Answer

Ignore the bottleneck and continue the project as planned.

Answer

Cancel all low-priority projects.

Question 14

You identify that a current portfolio component is consuming significant budget but providing low strategic value. What is the most appropriate portfolio-level action?

Accepted Answer

Recommend the component for termination or reprioritization.. When a component consumes significant budget but delivers low strategic value, the portfolio-level action is to recommend termination or reprioritization so resources can be reallocated to higher-value components. Portfolio management exists precisely to optimize the investment mix against strategy, and continuing a low-value component wastes capital and capacity. This decision is made through portfolio governance based on performance and strategic alignment data.

Answer

Wait until the next fiscal year.

Answer

Increase the budget to help it succeed.

Answer

Merge it with another project.

Question 15

You are a portfolio manager at a pharmaceutical company. One of your portfolio components, a drug development project, has just completed a critical clinical trial phase. The results show that the drug is effective but has significant side effects. The portfolio's strategic goal is to bring safe and effective treatments to market. What should you do next?

Accepted Answer

Recommend to the Portfolio Governance Board that the project be terminated due to safety concerns. The portfolio manager must ensure components align with strategic objectives. Since the drug's side effects conflict with the goal of safe and effective treatments, recommending termination to the governance board is the most responsible action. This prevents further investment in a misaligned project and allows resources to be redirected to more promising components.

Answer

Continue the project and initiate additional trials to mitigate the side effects

Answer

Transfer the project to a different portfolio that focuses on high-risk treatments

Answer

Pause the project and conduct a benefits realization analysis to determine if the drug can still be profitable