PfMP Free Practice Test

You are the manager for a governmental portfolio aiming to restructure the roads in your country. Having a tight schedule, a large number of stakeholders including the public, in addition to a strict budgeting framework, you know that you will be managing the performance closely and that the governance board and the stakeholders would want to check on the progress and performance frequently. For this you are developing a robust performance management plan. What can you use to help you start developing this plan?

1. A. Portfolio Management Plan, Organizational Process Assets, Portfolio Process Assets, Portfolio
2. B. Portfolio Management Plan, Organizational Process Assets, Portfolio Process Assets, Enterprise Environmental Factors
3. C. Portfolio Management Plan, Portfolio, Portfolio Reports, Enterprise Environmental Factors
4. D. Portfolio Management Plan, Organizational Process Assets, Portfolio Reports, Enterprise Environmental Factors

Correct Answer: D

Your CEO was fired because of a decline in the company's profits by the Board of Directors. They have now hired a new CEO, who plans to re-shape the portfolio and has changed the company's strategic goals and objectives. The new CEO will continue the existing product line of soap products that the company has manufactured for the past 50 years but now will manufacture new products to focus on the baby boomer generation as they retire but desire to maintain a youthful appearance. It also will offer other products to new high school and college graduates who want to appear older. As the portfolio manager you should:

1. A. Determine the overall impact to the portfolio performance
2. B. Determine investment requirements to move to these markets
3. C. Assess the competencies of the existing staff to support these new products
4. D. Evaluate whether the new products can be outsourced to reduce time to market

Correct Answer: A

The governance role in oversight is abundant during planning in order to agree on multiple roles and responsibilities including those of a portfolio manager. The agreements are recorded in the meeting minutes and included as updates to

1. A. Portfolio
2. B. Portfolio Management Plan
3. C. Portfolio Reports
4. D. Portfolio Process Assets

Correct Answer: D

Consider you have the following efficient frontier graph with multiple portfolios on it. Which portfolio do you choose? Larger image

1. A. Portfolio D
2. B. Portfolio B
3. C. Portfolio C
4. D. Portfolio A

Correct Answer: A

Assume you are the corporate portfolio manager for your global organization. There is one portfolio at the corporate level, but other portfolios supporting business units and core areas of the company. One of these portfolios involves manufacturing, and its number one program in terms of priorities is to implement an enterprise resource planning system. Since it is the number one ranked program in this portfolio, it is of interest at the corporate level, and you and your team provide reports on its progress monthly. You can see that:

1. A. Since earned value is being used, at this point you report the ERP system will not meet its cost and schedule goals
2. B. Extensive training will be needed after the program is complete, and an infrastructure does not exist to support the ERP system
3. C. Use of the ERP vendor has been underestimated, and a business case will be needed for increased funding
4. D. Inadequate, up-front financial planning was done when the business case was approved

Correct Answer: B