PfMP Practice Test 2 — 30 Questions

Question 1

A project is performing well but the portfolio environment has shifted, making the project's output irrelevant. What is the portfolio manager's next step?

Accepted Answer

Recommend termination of the component.. The portfolio manager must ensure components remain relevant to the current strategic goals, even if they are performing well technically.

Answer

Re-classify the project as a 'support activity'.

Answer

Ask the steering committee to change the portfolio strategy.

Answer

Continue the project to avoid wasting past investments.

Question 2

Which TWO of the following are key inputs for the 'Portfolio Monitoring' process?

Accepted Answer

Portfolio performance data.. Performance data and the original plan are needed to identify variances.

Answer

Local weather reports.

Answer

Individual team member weekly timesheets.

Answer

Personal email of the CEO.

Question 3

Which TWO of the following are steps in the portfolio risk management process?

Accepted Answer

Risk monitoring.. Identification and monitoring are foundational steps in the risk management process.

Answer

Project team hiring.

Answer

Office cleaning.

Answer

Annual holiday planning.

Question 4

A Portfolio Manager identifies a high-level risk where the cumulative budget of active projects exceeds the total portfolio funding ceiling. Which action best aligns with Portfolio Risk Management best practices?

Accepted Answer

Re-evaluate the portfolio risk response plan to include a portfolio-level contingency reserve adjustment.. Portfolio risk management requires assessing aggregate risk exposure against the portfolio's risk appetite and threshold.

Answer

Update the Portfolio Strategic Plan to increase the budget ceiling without further assessment.

Answer

Terminate all projects that are currently over budget to bring the portfolio back into balance.

Answer

Initiate a project-level change request to adjust the budget of each project individually.

Question 5

If a portfolio's performance is consistently below targets, what should the manager do after completing the variance analysis?

Accepted Answer

Present the variance analysis and recommended actions to the governance board.. The manager must present findings to the steering committee to determine if the strategy or the portfolio mix needs modification.

Answer

Create a new Portfolio Management Plan.

Answer

Inform the project managers that they are failing.

Answer

Immediately cut the budget of all low-performing projects.

Question 6

A portfolio manager discovers that a project component is technically successful but does not align with the current strategic vision. What is the most likely outcome?

Accepted Answer

Propose the termination or pivot of the component.. If a project is not strategic, it should be removed to free resources for high-value work.

Answer

Ask the technical team to change the vision.

Answer

Keep the project because it is technically successful.

Answer

Continue the project but reduce its budget.

Question 7

When rebalancing a portfolio due to a budget cut, which projects should be prioritized?

Accepted Answer

The ones that support the highest strategic priority goals.. Projects with the highest contribution to strategic goals should be prioritized during budget constraints.

Answer

The ones that are closest to completion.

Answer

The ones managed by the most experienced managers.

Answer

The ones that have the highest number of team members.

Question 8

What is the primary role of the portfolio manager during the monitoring phase?

Accepted Answer

Ensuring the portfolio delivers the intended strategic value.. The portfolio manager ensures the portfolio remains aligned with strategy and delivers value.

Answer

Writing code for the projects.

Answer

Managing individual team members' daily work.

Answer

Approving every individual project invoice.

Question 9

A portfolio manager notices that the actual portfolio ROI is significantly lower than the forecasted ROI. What is the first step the manager should take to address this variance?

Accepted Answer

Conduct a variance analysis comparing actual performance against the Portfolio Management Plan.. The first step is to analyze the root cause of the variance by reviewing performance data against the Portfolio Management Plan before initiating changes.

Answer

Adjust the resource allocation for all active components.

Answer

Terminate underperforming components immediately.

Answer

Update the Portfolio Strategic Plan to align with lower ROI expectations.

Question 10

You are managing a portfolio where the 'Value Measurement Framework' shows consistent misalignment between component outcomes and strategic objectives. What is the most effective approach to rectify this?

Accepted Answer

Re-evaluate and potentially re-prioritize the portfolio component mix.. Adjusting the portfolio components ensures alignment with the current strategic direction defined in the Portfolio Strategic Plan.

Answer

Request a revision of the organization's corporate strategy.

Answer

Increase the frequency of status reporting from project managers.

Answer

Change the KPI definitions to show better alignment.

Question 11

You are managing a portfolio where resource demand exceeds capacity. What is the correct approach to manage this bottleneck?

Accepted Answer

Reprioritize initiatives to align with capacity constraints.. When resources are constrained, the portfolio manager must prioritize based on strategic value to decide which initiatives proceed.

Answer

Hire more staff for every project.

Answer

Remove the resource constraints from the portfolio plan.

Answer

Ask all project managers to work overtime.

Question 12

Which technique is most effective for visualizing the level of interest and influence of various stakeholders?

Accepted Answer

Power/Interest Grid. A Power/Interest grid is a standard tool used to categorize stakeholders and determine the appropriate engagement strategy.

Answer

WBS (Work Breakdown Structure)

Answer

SWOT Analysis

Answer

Risk Register

Question 13

You are managing a portfolio and notice that the 'Benefit Realization' is slower than expected. What should you do?

Accepted Answer

Analyze the impact on strategic objectives and report to the governance board.. The manager must investigate the cause and evaluate whether the delay impacts the strategic objectives, then report to the board.

Answer

Ignore the delay until the project completes.

Answer

Speed up the project work by reducing quality.

Answer

Change the expected benefit date in the system.

Question 14

Which TWO of the following are common reasons for a portfolio to be re-optimized?

Accepted Answer

Significant changes in available budget or resources.. Changes in strategy or resource availability require re-optimization.

Answer

A team member requests a new laptop.

Answer

The coffee machine is broken.

Answer

A project manager changes their job title.

Question 15

A risk response is proving ineffective. What should you do?

Accepted Answer

Re-assess the risk and develop a revised response strategy.. Re-evaluating and updating the response strategy is the standard corrective action.

Answer

Continue with the plan, hoping it works eventually.

Answer

Close the risk to remove it from the register.

Answer

Fire the project team responsible for the risk.

Question 16

During a portfolio review, a board member claims the portfolio is not delivering value as promised. What is your immediate course of action?

Accepted Answer

Review current performance dashboards and value realization data against the strategic business case.. Evidence-based management requires validating the claim against performance metrics and strategic alignment before responding.

Answer

Request an immediate audit of all project management processes.

Answer

Defend the portfolio by listing all completed tasks from the last quarter.

Answer

Ask the board member to provide specific examples of failure.

Question 17

When updating the Portfolio Stakeholder Register, what is the most important factor to verify?

Accepted Answer

The stakeholder's current influence and interest level in the portfolio.. The information in the register must be accurate and up-to-date to ensure that engagement activities are effective.

Answer

The number of projects the stakeholder sponsors.

Answer

The salary level of the stakeholder.

Answer

The stakeholder's email address.

Question 18

A strategic initiative in your portfolio is experiencing significant scope creep, causing concern among stakeholders. How do you address this?

Accepted Answer

Use the portfolio governance process to review the impact of scope changes on strategic objectives.. Managing stakeholder concern involves transparent communication about impacts and active governance via change control.

Answer

Ignore the concern until the next quarterly update.

Answer

Request more staff to handle the extra scope.

Answer

Arbitrarily reduce the budget for the project to force scope reduction.

Question 19

Which document is primarily used to track stakeholder expectations, roles, and level of influence?

Accepted Answer

Portfolio Stakeholder Register. The stakeholder register is the standard tool for recording stakeholder identification and analysis data.

Answer

Portfolio Charter

Answer

Portfolio Strategic Plan

Answer

Communication Management Plan

Question 20

How do you ensure that stakeholders are adequately involved in the portfolio benefit realization process?

Accepted Answer

Define clear roles and responsibilities for benefits tracking in the governance plan.. Benefit realization requires active stakeholder participation throughout the lifecycle to ensure adoption and measurement.

Answer

Send them a report only after all benefits are achieved.

Answer

Ask them to sign a document stating they support the benefits.

Answer

Exclude them from discussions to avoid bias in data collection.