Latest PMI PfMP PDF and Dumps (2024) Free Exam Questions Answers
Pass Your Portfolio Management Professional PfMP Exam on Apr 09, 2024 with 767 Questions
The PMI PfMP exam is administered by the Project Management Institute (PMI), a global organization that offers a range of certifications to project management professionals. The PMI PfMP certification is one of the most prestigious certifications for portfolio management professionals. Portfolio Management Professional (PfMP) certification is designed to validate the candidate’s ability to manage portfolios of programs and projects effectively.
NEW QUESTION # 231
A portfolio manager needs to continuously balance the need and requirements with the available resources and needs to maintain a balanced portfolio and portfolio resources in order to optimize delivery. Capability and Capacity analysis is performed abundantly throughout the portfolio lifecycle and spans multiple processes.
While performing the capability and capacity analysis during the manage supply and demand process, which of the following you use to maximize the use of resources
- A. Soft Booking
- B. Continuous monitoring of the progress
- C. Allocating scarce resources
- D. Equity Protection
Answer: A
Explanation:
Explanation
In order to maximize the use of resources, organizations will commit resources to authorized portfolio components, based on the expected end date of an active portfolio component commonly referred to as "soft booking"
NEW QUESTION # 232
In a portfolio, data is an abundant asset, and managing the information aiming for a a better decision making is critical. For this you use a variety of Quantitative and Qualitative analysis methods. These methods are performed in 4 of the portfolio management processes and serve a slightly different purpose in each and every one of them. When it comes to the optimizing portfolio, what is the purpose of using this analysis?
- A. Performing Quantitative analysis and Sensitivity analysis
- B. Performing resource leveling, project sequencing techniques and dependency analysis
- C. Performing Cost-benefit analysis, quantitative analysis, scenario analysis, probability analysis, SWOT analysis, Market/competitor analysis and business value analysis
- D. Performing Status and trend analysis, Rebalancing methods, Investment choice tools, exposure charts
Answer: C
NEW QUESTION # 233
Once a component is authorized to be added to the portfolio, which set of documents is likely to be updated initially from this decision?
- A. Portfolio output reports and component documentation
- B. The portfolio risk matrix and process assets
- C. The portfolio management plan and the risk register for components
- D. Portfolio governance guidelines documentation and process assets
Answer: A
NEW QUESTION # 234
Your CEO is keen to know the likelihood of the portfolio to realize the expected ROI. You are currently looking for a tool to calculate the probability to achieve portfolio objectives. Which of the following will help you in doing that?
- A. Delphi
- B. Investment Choice Analysis
- C. Risk Exposure Charts
- D. SWOT Analysis
Answer: C
Explanation:
Explanation
The scenario points to the risk exposure charts which provide outcome probability analysis of the portfolio i.e.
cumulative cost distribution; in addition to calculating the probability of achieving portfolio objectives. Delphi technique is used to assess risk when no adequate information on risk exists from past portfolios. SWOT is Part of the elicitation techniques used in Manage Portfolio value process to ensure benefits are comprehensively and holistically taken into consideration. Investment Choice tools i.e. market payoff and trade-off analysis are not relevant to this scenario
NEW QUESTION # 235
As a portfolio manager and as part of your governance role, you use multiple tools and techniques to monitor and control the portfolio and maintain oversight. Which of the following can be used as tools and techniques in your role in oversight?
- A. Review meetings, Elicitation techniques, Integration Management
- B. Review meetings, Elicitation techniques, PMIS
- C. Review meetings, Elicitation techniques, Scenario Analysis
- D. Review meetings, Elicitation techniques
Answer: D
Explanation:
Explanation
You are in the Provide Portfolio Oversight process. The answer to this question is Review meetings, Elicitation techniques
NEW QUESTION # 236
Developing the Portfolio Management Plan is a major step in a Portfolio and for a Portfolio Manager. You are currently developing this plan and having focus groups and brainstorming activities during which you are using mind-maps diagrams to organize the idea into logical groupings. Which of the below are you using?
- A. Collaboration Technique
- B. Survey Technique
- C. Integration Of Portfolio Management Plans
- D. Facilitation Technique
Answer: D
Explanation:
Explanation
Facilitation techniques include focus groups and brainstorming activities. During these facilitated sessions, a mind-map diagram may be used as one type of tool to organize the ideas from stakeholders into logical groupings for consideration and incorporation into the plan.
NEW QUESTION # 237
Your company has a joint venture agreement with another company, but the partner companies'management has never shown up in any portfolio oversight meetings. That leads to a lot of pending decisions. How do you address this issue?
- A. Talk to the management of the partner company to understand communication requirements
- B. Find a solution in the portfolio risk management plan
- C. Talk to the investor to escalate the communication issue
- D. Consult senior executives
Answer: B
NEW QUESTION # 238
Multiple communication methods are used by the portfolio manager in order to proactively convey messages and engage the stakeholders at the right time and in the right manner. Which tool is used to visually convey multiple messages at the same time?
- A. Dashboards
- B. Efficient Frontiers
- C. Communication Calendar
- D. Resource sheets
Answer: A
Explanation:
Explanation
Dashboards are an effective way to communicate multiple messages on portfolio status and trending simultaneously. They can be part of the outputs of a PMIS system along with automated alerts
NEW QUESTION # 239
In a portfolio you have a continuous interaction between the portfolio and its components. The approach is top down when it comes to offering guidelines and approaches and becomes bottom up when the components report status and progress to the portfolio. What is the relation between the portfolio and portfolio components when it comes to defining the performance measures and targets (metrics)?
- A. Portfolio metrics used at the portfolio level are the same used at components level
- B. Portfolio metrics are not related to component metrics, each is used at its own level
- C. Metrics are defined at portfolio level and given as guidelines to components in order to define their own metrics
- D. Metrics are defined at components level and rolled up to the portfolio level
Answer: D
NEW QUESTION # 240
You are the manager of a major portfolio with a variety of stakeholders and stakeholder groups. you know that managing communication is key to success and you stress on maintaining a high communication level. As part of the portfolio communication management, multiple documents are prepared in order to effectively manage communications. The Communication matrix is one of the prepared documents, what does it include?
- A. Stakeholders quadrants showing the level of interest and influence
- B. Stakeholders roles, interests, expectations and groups
- C. Representation of all of the communication for the portfolio and their frequency over a period of time
- D. Intended recipients, communication vehicles, frequency and communication areas
Answer: D
Explanation:
Explanation
The Communication matrix contains intended recipients, communication vehicles, frequency and communication areas
NEW QUESTION # 241
The portfolio manager has obtained a prioritized inventory of work for each of the subportfolios of new products, regulatory, and quality improvement. Each subportfolio has been prioritized based on the objectives contained in the subportfolio charters. The executive sponsor has requested that the portfolio manager identify a best-practice approach to incorporate the subportfolio's prioritization into an overall portfolio prioritization.
The portfolio manager has determined that this approach should develop a process to:
- A. evaluate capability and capacity.
- B. integrate the subportfolios into the portfolio management plan.
- C. utilize graphical and analytical methods.
- D. implement a portfolio multi-criteria weighted ranking.
Answer: A
NEW QUESTION # 242
You are managing a complex portfolio with high risk levels due to emerging technological breakthroughs and a short benefit window to market your product. You know that managing risk is key to success and you are coaching your team on the same. When it comes to Managing portfolio risks, a risk owner, along with the portfolio manager, should select the strategy or mix of strategies most likely to be effective. Which of the following is not a risk strategy?
- A. Strategies for both threats and opportunities
- B. Fallback Plan
- C. Scenario Analysis
- D. Response Strategy Selection
Answer: B
NEW QUESTION # 243
Consider you are a veteran portfolio manager and that you are managing the most important portfolio in your company. What are the processes you execute as part of the portfolio governance?
- A. Portfolio Performance Management and Portfolio Communication Management
- B. Portfolio Management Plan and Portfolio Strategic Plan
- C. Define Portfolio and Optimize Portfolio
- D. Define Portfolio and Authorize Portfolio
Answer: C
NEW QUESTION # 244
Your team members were having a discussion about the contents of the Portfolio Charter and they came to you for advice because they could not agree on a common answer. What would be your advice to them?
- A. High-level scope and high-level timelines, critical success criteria and justification
- B. Scope and timelines, all success criteria and justification
- C. Scenario analysis, capability and capacity analysis
- D. Portfolio structure, scenario analysis, capability and capacity analysis
Answer: A
NEW QUESTION # 245
Because of budget cutbacks, a portfolio manager has been forced to make extensive changes to the portfolio schedule and components. As part of this restructuring, the portfolio manager should first:
- A. request direction from the governance board on how to modify the portfolio management office (PMO).
- B. request a portfolio management information system (PMIS) to help handle the changes.
- C. change the governance board members to reflect the new portfolio focus.
- D. identify the new stakeholder mix and revise the portfolio communication plan.
Answer: A
NEW QUESTION # 246
You are managing a portfolio for your company and are trying to balance the tasks that will be done internally based on the availability and the ones that will be outsourced. Managing supply and demand is a recurring activity in the portfolio life cycle and results in changes in resource utilization and resource efficiency. Which of the below helps in optimizing the supply and demand?
- A. Minimize both the unused capacity and the unmet demands
- B. Maximize the unused capacity and minimize the unmet demands
- C. Minimize the unused capacity and maximize the unmet demands
- D. Maximize both the unused capacity and the unmet demands
Answer: D
Explanation:
Explanation
Resources should be allocated to minimize both unused capacity and unmet demand
NEW QUESTION # 247
You are the portfolio manager in a large organization including a diversity of stakeholders. From the start, you knew the importance of correctly managing the stakeholders requirements and concerns and you grouped them in order to
- A. Group stakeholders as internal and external
- B. Group stakeholders having same concerns and interests
- C. Group stakeholders from the same functional area
- D. Facilitate stakeholders identification
Answer: D
Explanation:
Explanation
Stakeholders in the same group do not necessarily have the same concerns and interests; Internal and external classification is an additional classification to the stakeholders groups; grouping the stakeholders based on the functional area is not correct. Grouping of stakeholders is done to facilitate stakeholders identification and analysis by grouping stakeholders with related attributes and similar communication needs
NEW QUESTION # 248
Which type of analysis determines the effect of changing one or more factors of the portfolio?
- A. Trade-off
- B. Performance
- C. Market-payoff
- D. Force field
Answer: C
NEW QUESTION # 249
You are currently creating portfolio scenarios (what-if analysis) by reviewing components against prioritization criteria and using analysis techniques (e.g., options analysis, risk analysis, SWOT analysis, financial analysis). You are doing this in order to
- A. Understand the strategic priorities
- B. Evaluate and select viable options
- C. Create a basis for decision making
- D. Provide a guiding framework to operationalize the organizational strategic goals and objectives
Answer: B
Explanation:
Explanation
You are in the "Develop Portfolio Strategic Plan" process and in particularly performing the prioritization analysis (SPM V3 Page 45 - 4.1.2.3) As per the Portfolio Management Professional Exam Content Outline, you Create portfolio scenarios (what-if analysis) by reviewing components against prioritization criteria and using analysis techniques (e.g., options analysis, risk analysis, SWOT analysis, financial analysis) in order to evaluate and select viable options
NEW QUESTION # 250
One of your portfolio team members is confused on the reason behind using the three processes:
Define Portfolio, Optimize Portfolio, Authorize Portfolio and Manage Portfolio value. For him, we can skip a couple of processes. He came to you for advice. What should be your response to him?
- A. The processes are part of the standard for portfolio management and should not be skipped
- B. The processes are not similar and they are interrelated, they are continuously executed throughout the portfolio life cycle
- C. He is right, processes can be skipped if you want to do the other ones
- D. The processes are similar and can be skipped. The reason they exist in the standard is to cover the define, align, and monitor and control process groups
Answer: B
NEW QUESTION # 251
You have been recently assigned to manage a new portfolio that is supposed to shift the company from silo-based to a projectized one. You are in the process of initiating the portfolio. You are currently developing the strategic plan. Upon finishing it, you are expected to present
- A. Portfolio Strategic Plan
- B. Portfolio Strategic Plan and Portfolio
- C. Portfolio Strategic Plan and Portfolio Process Assets updates
- D. Portfolio Strategic Plan and Inventory of Work
Answer: B
NEW QUESTION # 252
While performing the manage supply and demand process, one of your sub-portfolio managers came to you asking advice on how to analyze intangible assets such as resources knowledge or skills based on the metrics defined. What should be your advice to him?
- A. You should tell him to use the qualitative metrics defined in the performance management plan in order to measure the intangible aspects. He can then use the number of full-time equivalents in order to quantify them when possible
- B. You should advice him to use quantitative analysis in order to quantify the intangible aspects and be able to measure them
- C. You should tell him to ignore the intangible aspects as they are not as important as tangible ones which will help in decision making
- D. You should tell him that metrics are only defined to measure tangible aspects; intangible measurements should be based on assumptions
Answer: A
NEW QUESTION # 253
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