PfMP Free Practice Test

One of the ten underlying principles of portfolio management involves a strategic focus. Assume you are going to have a short meeting with your CEO tomorrow, and you want to succinctly describe it. You will tell the CEO it is important since it:

1. A. Emphasizes the need for portfolio management to attain strategic objectives
2. B. Provides a clear basis for decision making
3. C. Includes processes and change initiatives to accomplish organizational strategies
4. D. Balances conflicting demands

Correct Answer: C

You are managing a portfolio linked to multiple business units and you set clear roles and responsibilities from the beginning to avoid delays and to enhance the decision making process. An unanticipated issue occurred last week, which relates to one of your team
members missing to check the market fluctuating currency. In which of the following documents should you look to know which member was responsible of this?

1. A. Strategic Plan
2. B. Governance Model
3. C. Risk Register
4. D. Risk Roles & Responsibilities

Correct Answer: B

Risk Management is integrated in all the other processes and process groups and is an integral recurrent activity throughout the portfolio life cycle. Which of the following is considered an external risk that can affect the portfolio?

1. A. Technological Advancement
2. B. Corporate Strategies
3. C. Bankruptcy
4. D. Changing Priorities

Correct Answer: A

While defining the portfolio mix, the portfolio manager performs a categorization of the portfolio components based on multiple categorization criteria. Which of the following is considered as a portfolio component category?

1. A. Continuous Improvement
2. B. Risk Reduction
3. C. All of the options
4. D. Process Improvement

Correct Answer: C

Calculate the composite index for the following portfolio having CPI weight = 80% and SPI weight = 20% Larger image

1. A. 0.9
2. B. 1.5
3. C. 1
4. D. 1.1

Correct Answer: C