PfMP Practice Test 4 — 25 Questions

Question 1

When should the Portfolio Charter be revisited or revised?

Accepted Answer

When there is a major change in organizational strategy or portfolio scope.. The charter is a living document that must be updated upon significant changes to organizational strategy or business conditions.

Answer

Whenever a project manager requests more budget.

Answer

When a committee member resigns.

Answer

Only at the start of the fiscal year.

Question 2

You are optimizing a portfolio and find that several components have low strategic value but high ROI. What is the recommended strategy for these components?

Accepted Answer

Evaluate for re-alignment, re-scoping, or termination.. Optimization involves balancing strategic alignment and financial returns; low-value components may be candidates for termination or re-scoping.

Answer

Terminate these components immediately.

Answer

Continue funding to capitalize on the high ROI.

Answer

Transfer these components to a different portfolio.

Question 3

Which document is updated when a project is closed within a portfolio?

Accepted Answer

The Portfolio Roadmap.. The Portfolio Roadmap and the Component Inventory must be updated to reflect the status change.

Answer

The Project Charter.

Answer

The Corporate Strategic Plan.

Answer

The Human Resources handbook.

Question 4

Which of the following is an example of an 'external' influence on portfolio performance?

Accepted Answer

New market regulations.. Market conditions are external factors that can impact the viability of portfolio components.

Answer

Project team conflicts.

Answer

Portfolio budget cuts.

Answer

Internal resource turnover.

Question 5

Which THREE of the following are necessary when managing resources across a portfolio?

Accepted Answer

Prioritization of components.. Effective resource management requires planning, tracking, and prioritizing.

Answer

Individual employee performance reviews.

Answer

Ordering team lunch catering.

Question 6

Which THREE criteria should be used to evaluate a component for inclusion in the portfolio?

Accepted Answer

The projected risk and return on investment (ROI).. Inclusion is based on strategic value, resource feasibility, and risk/reward balance.

Answer

The project manager's favorite programming language.

Answer

Whether the project manager is a relative of the CEO.

Question 7

The organization is shifting from a hierarchical to an agile governance model. How should the portfolio manager adapt the Portfolio Governance Plan?

Accepted Answer

Redefine decision-making thresholds, roles, and review cycles to support iterative delivery.. The plan must be revised to reflect new decision-making cadences, authority levels, and communication flows suitable for agile delivery.

Answer

Rename the document to 'Agile Governance Plan' without changing content.

Answer

Maintain the old plan until the next fiscal year.

Answer

Delegate all governance to the scrum masters.

Question 8

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

Accepted Answer

Identify the scope and objectives of the audit.. Auditing requires proper planning, data collection, and stakeholder engagement to ensure the results are accurate and actionable.

Answer

Skip the planning phase to save time.

Answer

Use an untrained intern to conduct the entire audit.

Question 9

Which stakeholder is most responsible for the Portfolio Roadmap?

Accepted Answer

Portfolio Manager. The Portfolio Manager creates and maintains the roadmap, while the Governance Committee approves it.

Answer

Portfolio Governance Committee

Answer

Project Management Office (PMO) lead

Answer

Portfolio Sponsor

Question 10

What is the primary role of the Portfolio Governance Committee?

Accepted Answer

Providing oversight, strategic direction, and decision-making for the portfolio.. The committee is responsible for high-level decision-making, strategic alignment, and oversight.

Answer

Writing project status reports.

Answer

Creating the project schedules.

Answer

Executing the daily project tasks.

Question 11

Which TWO factors are critical for a successful Portfolio Governance Committee?

Accepted Answer

Active participation of senior executives with decision-making authority.. Effective governance requires active senior leadership participation and a clear, well-communicated decision-making framework.

Answer

Including all project managers in the committee meetings.

Answer

Focusing only on the technical details of projects.

Answer

Allowing the committee to change projects at will without data.

Question 12

How does the portfolio governance structure integrate with project-level governance?

Accepted Answer

Portfolio governance sets the framework and policies that inform project-level governance processes.. Portfolio governance sets the standards and boundaries within which project-level governance operates, creating a unified control environment.

Answer

Portfolio governance overrides all project-level decisions.

Answer

They are completely independent and never interact.

Answer

Project-level governance dictates the portfolio governance.

Question 13

A portfolio manager is evaluating a new project proposal. The analysis shows that the project has high NPV but requires a significant change to the portfolio's risk profile. How should the manager decide?

Accepted Answer

Evaluate the risk against the Portfolio Strategic Plan and risk appetite.. The manager must assess the project's fit within the portfolio's risk appetite and strategic goals, not just the financial return.

Answer

Approve it because the NPV is high.

Answer

Submit the proposal to the project managers for their input.

Answer

Reject it because it changes the risk profile.

Question 14

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

Accepted Answer

Monitoring portfolio strategic alignment.. Governance involves setting the framework and monitoring compliance.

Answer

Ordering office supplies for the team.

Answer

Updating individual test cases.

Answer

Writing project source code.

Question 15

Which TWO of the following are ways to improve stakeholder engagement in portfolio management?

Accepted Answer

Providing regular, transparent reporting.. Transparency and clear communication are key to engagement.

Answer

Avoiding all communication until the project is finished.

Answer

Only speaking to them once a year.

Answer

Hiding all problems from them.

Question 16

A major vendor supporting your portfolio has filed for bankruptcy. This is an example of:

Accepted Answer

A portfolio-level risk.. This is an external, high-impact risk that requires immediate portfolio-level response.

Answer

An internal operational bottleneck.

Answer

A simple issue to be fixed by procurement.

Answer

A project-level constraint.

Question 17

Which TWO components of the portfolio are directly influenced by the Portfolio Governance Plan?

Accepted Answer

Component selection and authorization process.. The plan dictates how components are managed throughout their lifecycle and how they are monitored at the portfolio level.

Answer

The daily technical code commits of developers.

Answer

The individual vacation schedule of project team members.

Answer

The cafeteria menu at the office.

Question 18

A portfolio manager is preparing a report for a governance review. What information should be highlighted?

Accepted Answer

The current status of strategic alignment, risks, and financial performance.. Governance reviews focus on performance against strategic value, risk, and resource health.

Answer

The detailed task list of every active project.

Answer

The personal notes of the project managers.

Answer

The names of all project team members.

Question 19

Which TWO items are typically included in the Portfolio Governance Plan?

Accepted Answer

Defined decision-making thresholds and escalation paths.. The plan defines how the portfolio is managed, including how components are reviewed and how decisions are made.

Answer

The specific coding languages for the project.

Answer

The detailed project schedule for the next three years.

Answer

The personal bank account details of the project manager.

Question 20

Which THREE responsibilities does a portfolio manager have regarding the Portfolio Governance Plan?

Accepted Answer

Developing and documenting the plan.. The manager is responsible for creating, monitoring, and updating the governance plan as the business environment evolves.

Answer

Ordering stationery for the PMO office.

Answer

Creating all the individual project code.