EMT Practice Test

1. Question Content...

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Question1: A portfolio manager is asked to expand a portfolio. However, executives have been adding new projects to the portfolio that do not align strategically. This negatively impacts existing components.
What should the portfolio manager do to resolve this situation?

Question2: 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 in 4 of the portfolio management processes and it serves a slightly different purpose in each and every one of them. When it relates to optimizing portfolio, what is the purpose of using this analysis?

Question3: A portfolio manager is currently in the defining phase of a portfolio that aligns to a new organizational strategy. The portfolio manager is beginning to develop the portfolio charter, but is having difficulty ensuring that it is complete, comprehensive, and accurate.
In order to help guide the development of the charter, the portfolio manager should use the portfolio:

Question4: Portfolio management processes are performed in an environment broader than a portfolio; therefore, an organization-level implementation team supported by executive management, a governing body, and portfolio managers join forces to implement organization-level portfolio management processes. After Defining roles and responsibilities for portfolio management process implementation, what should be the FIRST next step?

Question5: Assume you are the portfolio manager for a company that specializes in software, including portfolio management software. It has many components under way to enhance the existing product line but also to move the company into Cloud computing. You regularly prepare reports on the portfolio status but lately have had a large number of stakeholders request ad hoc reports.
You decided to survey your stakeholders to learn about their information needs. You next decided to hold some one- on-one interviews with several interested and influential stakeholders in terms of communications requirements. From these interviews you are concerned that some stakeholder groups may be missing so you decided to:

Question6: In identifying risks to then manage and control, as the portfolio manager you are consulting organizational process assets such as:

Question7: While your organization maintains a decision register after each meeting of the Portfolio Review Board, this register only notes decisions that are made when a component is added to the portfolio or if the Board terminates a component. If the component is terminated, the reason for the termination is not listed. Also if a proposed component is not approved, the reason is not listed. It is evident this register is lacking in its usefulness, which means it requires updating as it is:

Question8: 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. You want to start developing your Communication Management Plan and are planning to use

Question9: Different stakeholders will have different portfolio reporting requirements. Sponsors for example will have a great interest in:

Question10: The members of your Portfolio Review Board and other key stakeholders tend to be risk adverse as the company has survived recent recessions and is profitable. However, in an upcoming meeting with the corporate Board of Directors, they have asked you to show the frequency of meeting certain cost objectives at various percent points. For example assume the portfolio is to meet a $41,000 target in the next month, to be 75% confident this will occur, a forecast of
$50,000 is needed. This means you need to show:

Question11: In a portfolio you have a continuous interaction between the portfolio and its components. You have to follow a lot of processes and procedures in order to reach a satisfactory result. In your opinion as a portfolio manager, who guides the portfolio team to follow the processes, metrics, and other procedures in the portfolio?

Question12: The above figure shows the relationship between supply and demand. Which area do you want to minimize?

Question13: A number of components proposals are on the table as a result of the strategic planning cycle.
While defining the portfolio, you wanted to make a preliminary screening of the proposed components in order to filter them based on the acceptance criteri

Question14: 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:

Question15: It is rare for organizational leaders to have an in-depth knowledge of all the work under way in the portfolio, but it is needed for portfolio decision making. If you were asked to prepare such an inventory, it would:

Question16: You have joined a company as a portfolio manager. The functional manager of your department is using an excel file to manage portfolio components. The excel file includes some necessary information about portfolio components such as Component Name, Start Day, Target Day, and Assignee. You use the excel file as a start point to develop a portfolio. Technically, how do you call that excel file?

Question17: Which type of analysis should the portfolio manager use to determine the roles and responsibilities in the portfolio components?

Question18: Which type of analysis is most suitable for identifying the highest-impact risks?

Question19: Your probability and impact assessment work is complete, and you are using the results to prepare the portfolio risk management plan. As you do so, it also is useful to:

Question20: A big strategic change occurred at the organization level and has impacted multiple portfolios in the organization including yours. The CEO has asked you to prepare a presentation to depict the impact of this change on portfolio resources. Which of the following should you present in this case?

Question21: A stakeholder complains of losing time attending status meetings despite receiving regular status reports. How can the portfolio manager resolve this complaint?

Question22: Your executive management has been recently undergoing a change from a functional organization to a projectized one and is currently assessing the volume of work that the organization can execute. Which of the following tools and techniques will decide the volume of work and components that the organization can execute?

Question23: Assume you are a member of your company's Portfolio Review Board. Your Board meets quarterly to determine which new components to undertake and selects them even if it means the portfolio then will require rebalancing. As you consider the proposed business case for a component and assess the suggestions of the other Board members, a key factor is:

Question24: In a portfolio oversight meeting, two executives have different opinions. The disagreement between them leads to many pending decisions in the portfolio managed by you. What should you do to duel with their conflict?

Question25: A senior executive complained that he didn't receive an invitation for a project steering committee. What should you do to handle this complaint?

Question26: You're ranking projects using a scoring model consisting of a series of evaluation criteria. The above figure shows the score measure and the weight for each criterion. Which project has the highest priority?

Question27: 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. You are currently in the process of identifying and analyzing risk, in addition to developing risk responses and monitoring and controlling risk. Which documents can help you achieve this?

Question28: You're determining various possibilities of resource allocations and the impact on component schedules. You also notice what would happen if human, financial, or equipment funding was increased or decreased or if constrained resources were not available as scheduled. What process are you performing?

Question29: A component manager asks to include a contingency reserve in the budget for some common risks that are valid across several other components in the portfolio. Including this reserve will reduce the component's return on investment (ROI) below acceptable standards.
The portfolio manager should recommend that the component manager:

Question30: Your organization has a defined portfolio management process that it has followed for three years. As the portfolio manager, you keep your various plans up to date, and because of numerous regulatory changes involving the telecom industry, it is time to review and update the risk management plan. You have several key stakeholders working with you as you realize the importance of this plan in maintaining a competitive advantage. One way you and your team are assessing the various risks that may impact the structure of the portfolio is to use:

Question31: Due to strategic changes, one of the sub-portfolios in your portfolio has been decided to be canceled because it no longer meets the new market demands. What is your next step as a portfolio manager?

Question32: Due to a strategic change, multiple components on your portfolio have been terminated, leaving you with limited remaining funds coming from the terminated components. What should be your best course of action?

Question33: An issue arises regarding accountability on one of the major risks in a portfolio. Which area within the portfolio risk management plan should be reviewed immediately to rectify this issue?

Question34: Working to best optimize resource supply and demand in your telecom company, authorized components are prioritized to help in resource allocation. This means as you work to do so, you need to review the portfolio because:

Question35: When evaluating portfolio components, which technique should a portfolio manager use to ensure that the portfolio includes components that are aligned to the different aspects of the organization's strategic plan?

Question36: As a part of the portfolio management plan, the portfolio performance management plan is intended to:

Question37: You have been asked to manage a major portfolio in order to salvage the company and and re-align it with the strategic objectives and goals. You decided to develop the strategic documents and are currently developing the charter. As a portfolio manager, which of the following would be your answer when asked of the purpose for the development of portfolio charter?

Question38: The most suitable mechanism to communicate the status of major portfolio risks to stakeholders is:

Question39: 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:

Question40: The portfolio undergoes a lot of changes through the portfolio life cycle, and the state of the portfolio changes on the go. Some components are terminated, other are added and initiated.
When it comes to the authorize portfolio process, which of the following represents the state of the portfolio

Question41: You have found that one of the vendors had a low reputation, and you are worried that they would provide low-quality service for your portfolio. What should you do next?

Question42: 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 have developed a robust performance management plan. What is expected to be found in this plan?

Question43: Assume you recently took a seminar on portfolio management, and after you returned, you made the business case for it to the President of your consulting firm, recognizing the need to improve the capture ratio of responses to Requests for Proposals. You have been asked to implement portfolio management and recognize that you need to develop orientation and training sessions on it so everyone in the firm realizes why it is essential to pursue. To do so, the best approach is to:

Question44: Your company got recently acquired by another company and the strategic directions which your portfolio is based on have been changed. Which document do you, as a portfolio manager, change to reflect the portfolio new vision?

Question45: The portfolio strategic plan should contain a prioritization model or approach that guides the ongoing decisions as to which portfolio components should be added, terminated, or changed, as well as prioritizes and balances the component mix over time. A simple prioritization model may be provided which contains

Question46: 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?

Question47: You have proposed a portfolio governance model to your company, but an executive told that the current culture might not be flexible enough to change the organizational structure. What kind of risks did the executive raise?

Question48: During a review of a draft portfolio management plan, a portfolio manager discovers that portfolio goals are misaligned with organizational strategy. What should the portfolio manager do next?

Question49: A portfolio manager has begun work on a new portfolio and is developing the portfolio strategic plan. The organization has a low risk tolerance, and the business strategy is focused on increasing market share, revenue, and profits for the organization.
As the portfolio manager is selecting potential components, the most important selection criterion is the components':

Question50: Assume you are the portfolio manager for the Federal Railroad Administration. Funding is provided annually according to the Government's budget process. Any monies that are not spent at the end of a fiscal year are lost, and there are some restrictions in place concerning whether funds can be transferred to different programs, projects, or operations work in the agency.
Therefore, to maximize the use of funding you require:

Question51: Programs and projects in your company, one of the largest banks in the world, are required to submit metrics as to their individual progress each month. To simplify the collection and reporting process, you held interviews with members of the Portfolio Review Board to see their areas of greatest interest and also with program and project managers to determine how difficult it would be to collect the dat

Question52: An organization has been able to achieve consensus on its strategic goals, but has not agreed internally on how these goals should be met or whether the current activities are aligned with these goals. The organization has hired an experienced portfolio manager to address this situation.
After surveying the current portfolio, the portfolio management plan, and reports from the various portfolio components, the portfolio manager's first action should be to:

Question53: An urgent review meeting was set due to the discovery of multiple risks which can have drastic effects on the portfolio. As a result of the meeting, it was agreed to increase the portfolio budget and add more resources in order to manage the new risks. Which of the following documents needs to be updated as a result of this decision?

Question54: A key portfolio stakeholder asks a portfolio manager to provide funding for a new initiative. What should the portfolio manager do next?

Question55: Working as a portfolio manager in the Water Resources Department of the U.S. Geological Survey, you are following a scorecard approach to report progress to your executives on the components in your portfolio. You submit the scorecards monthly, and based on their results, your executives decide if a Portfolio Review Board meeting should be held. Your emphasis in these reports is to:

Question56: Which of the following items are included in a portfolio risk register? (Choose two.)

Question57: Your dry foods company is faced with new regulations that dramatically change what is to be included in each product to put on redesigned food labels. The objective of the regulations is to help reduce obesity in the citizens in your country so they are aware of trans-fat food. You must be in complete compliance with these regulations in six months. As the portfolio manager you must document how you will address these regulations in a:

Question58: 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 the most effective method for analyzing the effect of risks on portfolio strategic objectives, and determining whether they have high or low effect

Question59: As the Director of Human Resources, you were pleased to be asked to join the Portfolio Steering Committee in your organization as you feel you can contribute given the scarce subject matter experts as your company begins to enter a new market in children's toys rather than its main focus on video games and apps. Children's toys will represent a new portfolio in the company.
However, while you will concentrate primarily on the resource allocation issue as you work to determine the types of projects and programs to pursue, it is important as well to recognize that:

Question60: You have set a meeting with your portfolio team members as an answer to the identification and update of the organization near-term budget and plans. One of your team members asked you of the goal of what is being done. Your answer to him should be

Question61: Due to market technological changes, your company got impacted and was urged to revise its portfolios. You are currently revising your portfolio to determine the required changes in the component mix. Which of the following options helps in assessing the capability of the organization to undertake the portfolio with its new strategic direction, and what is needed to be done?

Question62: Which of the following are portfolio process assets?

Question63: The portfolio performance management plan should include:

Question64: 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:

Question65: When initiating portfolio components and terminating other, you come up with updates to budget, funding and resources allocations. Where should these updates be recorded?

Question66: Which of the following process requires elicitation techniques? (Choose two.)

Question67: A CEO initiates the strategic goal of bringing new products to market during the next five years. In response to this goal, the portfolio manager is tasked with leading a new portfolio based on a set of specific approved products.
What should the portfolio manager do first?

Question68: Portfolio Prioritization Model is included in the Portfolio management plan and guides the ongoing decisions as to which portfolio components should be added, terminated, or changed; which of the following is correct regarding the Prioritization Model purpose and content?

Question69: A large organization has an extensive portfolio. However, senior management is concerned that these efforts may not be completely aligned with previously agreed upon portfolio metrics, and they have expressed this concern to the portfolio management team.
The team's response should be to:

Question70: 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?

Question71: Your State Governor is fiscally conservative and has limited significantly the financial resources to be provided to each University in the eight Universities in the State's system. Recognizing your University is going to have a 55% reduction in its budget, your Chancellor is re-evaluating all the work that is under way to see how much it can do with fewer resources. Every department will have layoffs at all levels. However, the University does have a portfolio management process in place, which people support. This means for effective portfolio management:

Question72: A number of components proposals are on the table as a result of the strategic planning cycle.
While defining the portfolio, you wanted to use a method to help you compare portfolio components that address similar needs. Which of the following techniques you use?

Question73: You are performing a readiness assessment to assess how ready the organization is to serve the steps necessary to bridge the gap between the "as-is" portfolio state and the "to-be" state. Which process are you performing?

Question74: When managed correctly, the balanced scorecards can change the way an organization does business. Balanced scorecards keep focus on results. As a portfolio manager, you know that the purpose of using the balanced scorecards is

Question75: Embracing a management-by-projects culture means there tends to be far more projects to pursue than available resources. An approach then is required to guide decisions as to components in the portfolio. A best practice to follow is to:

Question76: Your company has multiple portfolios on the way and a variety of different clients and industries.
Risk levels are high due to recent governmental regulations and the company has recently been penalized due to a non-compliance to one of the standards. You know that you need to closely managing this.
As a result, you will be come out with

Question77: When managed correctly, the balanced scorecards can change the way an organization does business. Balanced scorecards keep focus on results. Which of the following are factors that can be targeted by the Balanced Scorecards method?

Question78: Your company has acquired another company to expand its product line. Which document should you update to reflect the change in organizational structure?

Question79: Portfolios have a lot of components in them and are executed along an extended lifecycle. For this, as a portfolio manager, you continuously monitor and control the progress and status. What input can you use to help you with this?

Question80: The Strategic Plan is an important document that is referenced throughout the portfolio life cycle.
Which of the following is correct regarding the Strategic Plan purpose and focus?

Question81: A new sponsor was appointed by the company in order to push more on the investments underway. The new sponsor wants detailed information on time and money and wants to get things done quickly. Which element of the portfolio management plan will be referred to for managing the sourcing of key resources?

Question82: A portfolio manager needs to continuously balance the need and requirements with the available resources to maintain a balanced portfolio and portfolio resources in order to optimize delivery.
Capability and Capacity analysis is performed in 4 of the portfolio management processes and it serves a slightly different purpose in each and every one of them. When it relates to the organization level. This analysis comprises which of the following?

Question83: You are planning to set up a regular portfolio oversight meeting. How do you ensure stakeholder communication requirements are met?

Question84: Working to monitor the portfolio especially in terms of its value to the organization, you had each component manager prepare monthly variance reports. Of the components ranked in the top 10, six of them realized they would not require some of their initial funding and still would be completed as planned. This means:

Question85: You have been assigned as the manager for a major transformation portfolio in your company.
You have a new direction in sight and you need to work with the team to attain the end goal and achieve the expected strategy. You have just finalized managing the strategic change and you are expected to present the following documents:

Question86: 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

Question87: All measurements in a Portfolio are done in correspondence to Key Performance Indicators (KPIs), and defining those KPIs is essential and should be done by highly capable personnel.
Which of the following is true regarding who prepares KPIs and which party approves them?

Question88: An efficient portfolio of a risk-averse organization would most likely be found on which part of the efficient frontier curve?

Question89: Your company's water treatment center serves three cities. Tests are conducted each day to see if the water is safe to drink. On Thursday, E coli were found in the water, but the water authority did not notify the citizens in the three cities. Instead, the citizens learned on Friday, the water was now safe to drink. The citizens are in an uproar, and your company is to blame. It is obvious one of the problems is the aging infrastructure and limited resources. To best optimize the portfolio, your CEO asked you to:

Question90: Stakeholders in your company are skeptical of the changes that will occur as portfolio management is being implemented. While some are supportive, most are not as they believe their work may be terminated. As the portfolio manager, you prepared a list of stakeholders, which is included in the:

Question91: When we talk about portfolios, programs and projects, it is inevitable to mention the business value which is the sum of tangible and intangible assets of an organization, also known as the net quantifiable benefit. When it comes to business value, at which level of the organization is the Business Value achieved?

Question92: Managing value is key to success as portfolio are undertaken to ultimately deliver an outcome that is strategically aligned and which delivers value to the organization. While managing value, the portfolio manager invokes the Benefits Realization Analysis activity. Which of the following is part of this activity?

Question93: The interest, influence, and communication needs of business operational stakeholders who are looking to ensure alignment between portfolio components, while minimizing negative impact and maximizing positive benefits of all portfolio-managed changes to their business operations, relate to which type of stakeholders?

Question94: Organizations pass by a strategic planning cycle on regular basis in order to align existing strategies, remove strategies and add new ones. When it comes to the implementation, which of the following options represents the activities through which the organizational strategies are implemented?

Question95: Your company, which has been in the blimp business for over 50 years, prides itself on its robust portfolio management process, which is especially useful now that the demand for blimps of various sizes is much greater than the capacity to produce them. One of the reasons the blimp company has been so successful over the years is it has central management of all of its resources. This approach is important:

Question96: Working as the portfolio manager for your business unit of a major aerospace organization means you have a variety of programs, projects, and operational activities under way. You have set up a number of reports on the progress of the portfolio for your various stakeholders, but the best approach is to monitor the progress of the portfolio against:

Question97: During the development of the portfolio communication management plan, the portfolio manager wants to build a communication plan for the portfolio stakeholders. Which items are needed for the communication matrix?

Question98: Portfolios include a lot of work and as a portfolio manager you need to keep an eye on the value realization while maintaining the strategic alignment. You are currently aggregating value delivered by the portfolio components. What outputs do you expect to get out of this?

Question99: In order to guide the work and correctly manage the portfolio, one of the major documents to be prepared is the Portfolio Management Plan acting as guideline for portfolio management. What are the tools and techniques you could use while developing this plan?

Question100: An organization establishes a new portfolio to initiate a new division. A new management team from a wide variety of competitors is hired. The portfolio manager reviews the potential portfolio risks with the new management team members, who have very different views of the risks based on various backgrounds and levels of experience.
Which approach should the portfolio manager use to develop a common understanding of the portfolio risks among team members?

Question101: Your company has decided to invest in a revolutionary product that will make the delivery of online orders easier and will cut down the delivery time by no less than 35%. While measuring the value of the new component with relation to the market, which of the following should be used?

Question102: 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 portfolio closely and that the governance board and the stakeholders would want to check on the progress and status frequently. For this you have developed a robust Portfolio management plan. What do you expect as output of this development?

Question103: As part of developing the Communication Management Plan, a portfolio manager executes the Communication Requirements Analysis, in addition to Stakeholders Analysis. Which of the following options in your opinion is a result of the Stakeholders Analysis?

Question104: Working to prepare the portfolio performance management plan, assume you have been involving others in the process to help secure their later support of the plan. You also reviewed historical information and other artifacts. Not to be overlooked is a/an:

Question105: One of your goals as a portfolio manager is to ensure that your stakeholders receive the information they need for decision making. To help manage the portfolio information that is provided, you decide to gather information by holding portfolio component review meetings. Your purpose in holding these meetings is to:

Question106: Your organization is considered a leader in knowledge management and has a Chief Knowledge Officer reporting to the CEO. It also implemented portfolio management eight years ago. As the organization focuses on continuous improvement and transformational leadership, it had an external consultant review its portfolio artifacts and do some benchmarking. One of the consultant's recommendations was to update the portfolio risk management plan since the company is embracing new and complex technology in much of its work. In updating this plan, it was useful to:

Question107: In your web app company, the portfolio is constantly changing. It is not unusual for a new proposal to be submitted each day and for other components to be terminated as a competitor was first to market. The Portfolio Review Board usually meets daily in this fast-paced environment as it:

Question108: A portfolio manager has received phone calls from several concerned executives who have not been made aware of the portfolio, its objectives, or its progress. The portfolio manager realizes that these executives are likely to play a significant role in providing resources for the portfolio components. This is occurring despite the fact that a portfolio communications management plan has already been developed and is in use.
The most likely cause of this issue is that the:

Question109: Assume at this point as the portfolio manager in your mattress company, you are activating portfolio components, updating portfolio reports, and documenting the decisions made at the recent Portfolio Governance Committee meeting as the company moves into new markets. You are therefore:

Question110: Which of the following depicts the use of the burn-down and burn-up charts?

Question111: A portfolio charter may include a:

Question112: As a portfolio manager and in the aim of defining the preliminary list of components to be included in your portfolio, which will serve as a starting point for developing a portfolio. You start by identifying existing and potential portfolio components by reviewing documentation such as business plans/proposals in order to

Question113: When we talk about portfolios, programs and projects, it is inevitable to mention the business value which is the sum of tangible and intangible assets of an organization, also known as the net quantifiable benefit.
When it comes to business value, at which level of the organization is the pursuit of Business Value optimized?

Question114: A portfolio manager has been informed of a related opportunity which, if it occurs, can bring in substantial revenue for the organization. The first action the portfolio manager should take is to:

Question115: Delays in many component projects have led to a decision to increase the frequency of the portfolio review meeting to every 2 months instead of quarterly in order to monitor the portfolio more closely, requiring a change in the frequency of reporting cycles. Where should the portfolio manager maintain this information?

Question116: 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 in 4 of the portfolio management processes and it serves a slightly different purpose in each and every one of them. When it relates to developing the performance management plan, what is the purpose of using this analysis?

Question117: In order to develop the portfolio roadmap, a portfolio manager must have a portfolio:

Question118: As you focus on managing the value pf the portfolio, you find that portfolio variance/alert reports are helpful. Assume you have been using a 'traffic light' format as it is easy to prepare, but an objective is to:

Question119: You have scored the portfolio components and are analyzing the data in order to prioritize the components. Using the following scoring table, which of the options represents the correct Components Priority?
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Question120: Which of the following enables a portfolio management office (PMO) to measure the aggregate portfolio performance of each project?

Question121: Your organization tried implementing portfolio management in the past, but even though it purchased a sophisticated automated software system for scoring and prioritization, it was not successful. After a year of complaints about the system, the executive team disbanded it. Now, resources are scarce, and some executives who were involved in the earlier attempt have left the company. The new CEO asked for a list of ongoing programs, projects, and operational work, and you could not provide one even though you direct the Project Management Office. He wants this inventory so it then can be used as the starting point to implement portfolio management. You and several others stated it did not work previously and do not believe it will work in the company.
The CEO then hired a person to be the portfolio manager from outside who reports directly to him. The portfolio manager is emphasizing the importance of resources working on initiatives aligned with organizational strategy as part of the:

Question122: You are managing a large construction portfolio. Recently, and due to budget cuts, you have been having resources issues on multiple initiatives and has been struggling with maintaining a healthy resource allocations. You are currently analyzing the capability and capacity for scarce machinery resources shared across three major programs in the portfolio. What are you currently applying?

Question123: A key portfolio stakeholder has just requested that the portfolio manager add two new portfolio components and terminate another component. What should the portfolio manager do first?

Question124: Assume you are the portfolio manager for your HVAC (Heating, Ventilating, and Air Conditioning) company, one of the largest in the world. Preparing for a meeting with the Portfolio Governance Committee, you have been reviewing the success of components that have been completed as well as the progress of current portfolio components. In many cases people who only purchased heating units in the northern part of the country, and people who purchased only air conditioners in the south, now are buying state-of the art products to easily switch as needed. You found the risks of climate change led to the need for these new energy efficient products and did so by:

Question125: While developing the portfolio management plan, which part of the plan will aid the portfolio manager in determining the efficient frontier?

Question126: You're using a bubble graph to compare and balance portfolio components. How do you call a bubble graph technically?

Question127: Being a portfolio manager, you realize that defining value differs among organizations based on the type of organization and its strategic goals and objectives. However, you know a value measurement framework is helpful as it:

Question128: You are the CIO of a real estate investment trust (REIT) that invests in apartments and condominiums in more than 50% of the states in your country. Your organization has as its goal to respond to any concerns that arise within 24 hours; for example, you want to make sure Wi-Fi sites are operational if there are any power outages, and people have soft phone service available 24/7. You are a member of the REIT's Portfolio Review Board, and as a member of the executive team in terms of portfolio risk management, you want to focus on:

Question129: Enterprise environmental factors (EEFs) may constrain portfolio management options and may have a positive or negative influence on the outcome. Which of the following is not considered part of the EEFs?

Question130: Assume you are working in the Joint Forces Command in your country. In this agency, all of the defense agencies are consolidated for better collaboration to support troops working around the world. Each program or project tends to have more than one sponsor, and since each Command is represented in this agency, the same is true for the portfolio. These sponsors are listed in the:

Question131: One of the key stakeholders came to you asking you to add more metrics because she thinks that it would give the portfolio management a better view of the actual progress. For her the more metrics you have the better. What should your opinion be regarding this?

Question132: During one of the review meetings, the governance board asked to know the progress with relation to benefits of one of the major programs in your portfolio; in this case you will advise the program manager to present

Question133: The portfolio management plan documents responses to significant changes in strategic direction, which includes reviewing and:

Question134: Which documentation should portfolio process assets include?

Question135: Your Portfolio Review Board is scheduled to meet in a week. Resources only are available to support one project, and detailed business cases have been prepared for two of them. Your company has a policy of being risk adverse. Based on the following table, which project would you recommend to the Board, and what else would you mention to them?

Question136: As a portfolio manager, you realize the importance of communication for the success of a portfolio. You are now developing the portfolio management plan and are looking for the portfolio current risks status including high risks. Which of the following contains what you are looking for?

Question137: Your company works closely with the government on the implementation of water pumps for rural areas. You are constantly dealing with new and updated regulations, and periodically adapting the portfolio to the changes. When it comes to regulatory components, how do you include the components in the portfolio?

Question138: A new CEO has been hired by an organization, and the board of directors has made it clear that the new CEO must take more business risk than the previous CEO. The portfolio risk tolerances may need to be altered because of the leadership change.
How should the portfolio manager respond?

Question139: After developing a portfolio strategic plan, you create various portfolio scenarios using different combinations of both potential components and current components, evaluating their possible outcomes based on multiple assumptions? Which process are you doing?

Question140: Two examples of enterprise environmental factors are:

Question141: 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?

Question142: A portfolio manager is managing a portfolio as described in the following table:

The CEO has requested that the portfolio manager calculate the health of the portfolio to achieve the benefits to the organization. The organization has placed more importance on the CPI metric than the SPI metric, weighting cost at 80% and schedule at 20%.
What is the composite index of the portfolio?

Question143: The Portfolio Performance Management Plan is an important document that is referenced throughout the portfolio life cycle. Which of the following is correct regarding the Portfolio Performance Management Plan purpose and focus?

Question144: Portfolio balancing can be done in several different dimensions based on organizational preferences. When your software development company, which is CMMI Level 5 certified, began to focus on portfolio management four years ago, you started with a simplified ranking approach and now moved into using an automated, sophisticated weighted scoring software tool throughout the organization. In terms of portfolio balancing, it is appropriate to:

Question145: Aligning the portfolio with the strategic objectives starts by developing the Portfolio Strategic Plan.
You are currently developing this plan and are looking for a document that provides you long-term direction. What are you looking for in this case?

Question146: The role of the portfolio management governing body is to:

Question147: Portfolio managers tend to use the efficient frontier analysis as a modeling approach that gives decision makers the analytical tool to optimize portfolios given resource constraints such as risk.
Consider that your company is risk-averse, on which side of the efficient frontier curve should the undertaken portfolios lie?

Question148: When are portfolio components evaluated and compared in an organization that has a low risk tolerance and a business strategy focused on increasing market share, revenue, and profits for the organization?

Question149: Capability and capacity analysis are useful tools in portfolio performance management. In using this type of analysis a best practice is to:

Question150: The above figure shows the efficient frontier of a portfolio. Which point has the best possible expected level of return for its level of risk?

Question151: The portfolio manager defines the portfolio based on a listing of already existing work in the organization and selects the right components in order to be able to prioritize them. What do you use for defining the portfolio based on the listing of work?

Question152: Managing risk is key to the success of any initiative. Risk is considered to be inherent in any activity we do in project management and at any level. As part of managing risks, the portfolio manager applies multiple analyzes and uses tools to help dealing with risks. What does the portfolio manager use to visualize risks impact on portfolio strategic objectives such as profitability?

Question153: When we talk about portfolios, programs and projects, it is inevitable to mention the business value which is the sum of tangible and intangible assets of an organization, also known as the net quantifiable benefit. When it comes to business value, at which level of the organization is the delivery of Business Value optimized?

Question154: Assume you are a functional manager in your medical device company in research and development. Your scientists have determined a new product that will be a breakthrough for the company, and you want to serve as the sponsor for this component and present it to your Portfolio Review Board. You will need resources from other parts of the company to commercialize it. As you prepare your proposal you are following the key descriptors set up by the portfolio staff and will include:

Question155: Assume you are the portfolio manager for your training company. It decided to implement portfolio management in a major way to ensure it remained competitive in the changing market and could offer a variety of methods to deliver courses rather than only in a face-to-face setting.
The company set up a Portfolio Management Group, and you are responsible for providing information on portfolio status and then providing information to those interested stakeholders about the Board's decisions. You want to make sure the reports meet stakeholder requirements.
After performing a detailed communications requirements analysis, you found it interesting that stakeholders wanted information about:

Question156: During a portfolio review meeting, the steering committee has decided on the inclusion of a new project to re-align the portfolio with its strategic objectives, what do you do before and after the meeting?

Question157: Your health insurance company has set up its portfolio into five different categories: research and development, IT, Medicare, government health insurance, and non-government health insurance.
Funding is allocated yearly to each of these six categories. As the portfolio manager at the enterprise level, you:

Question158: 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:

Question159: A new project manager was given an assignment on one of the components in your portfolio.
What will you do as a portfolio manager in order to align the project manager with the strategic direction and integrate him/her with the work in progress?

Question160: 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. Metrics are used for measuring the performance. They need to be meaningful in order to be able to provide clear and logical targets, and in order to be able to be measured. Which guideline is used in order to develop meaningful measures?

Question161: Due to recent organizational restructuring, a portfolio manager decides to reduce the level of portfolio communications to a specific stakeholder. Which of the following is justification for this action?

Question162: Although you are the Portfolio Manager in your company, you also are the Enterprise Program Office Director, and it consumes most of your time. Your executive team has lost interest in regular portfolio review meetings, the few that are held are routine, and any proposed component receives automatic approval. The Executive Vice President for Human Resources spoke to the CEO as she noticed some people seem to be completely overloaded, they are actively looking for new opportunities, and are then leaving the company. She also pointed out that others seem to have idle time. Her comments got the CEO's attention, and you have been asked in your role as the portfolio manager to create an up-to-date list of qualified components in the portfolio. You are doing so in order to:

Question163: Updates to schedules i.e. resource, funding, benefits, are results of Developing the Portfolio Performance Management Plan process. Where should these updates be recorded?

Question164: Which items should be considered when determining the performance status of the portfolio?

Question165: You are managing portfolio information. Which inputs do you need? (Choose two.)

Question166: You work in a fairly small company where the PMO helps in providing oversight to support the portfolio management. In such organization, where are the PMO structure, responsibilities, and implementation approach documented?

Question167: You have just completed portfolio optimization and want to allocate resources to selected portfolio components. Which process should you follow?

Question168: You are planning how to communicate with stakeholders for your portfolio. Which tools and techniques do you use? (Choose two.)

Question169: You are managing a large portfolio and know that you will need to constantly show the progress and status of the portfolio in meeting. For this you have developed a robust roadmap using BI tools. The portfolio roadmap is an important document used throughout the portfolio life cycle; when it comes to developing the portfolio communication management plan, which of the following options is correct

Question170: A portfolio manager has been requested to forecast any potential deviation from the baseline plan. Which tool or technique should the portfolio manager use?

Question171: You are the portfolio manager for a large county that comprises much of a major city in your country. The city also has a portfolio manager, and often you meet to discuss proposed initiatives to see if there are any dependencies. In your county, you established an approach to evaluate portfolio components to make judgments regarding their alignment and priority. In doing so, which of the following was especially helpful:

Question172: During the "Manage Portfolio Information" process, you have identified a new stakeholder. Which artifact should you update?

Question173: The balanced scorecard approach uses a scoring process based on:

Question174: You have just recommended the Portfolio Strategic Plan and Portfolio to the governance board for approval. The portfolio board members informed you that they did not find what they were looking for in the strategic plan and that it needs to be reworked. What should have been part of your Strategic Plan?

Question175: Which action is most useful to analyze stakeholders'levels of interest and influence?

Question176: Following an organizational change and restructuring. One of the Portfolio Key Stakeholders got a promotion and became a director. She became less interested in your portfolio and you used to engage her very closely. What is your best course of action in this case?

Question177: The Portfolio Management Office (PMO) provides support to the portfolio manager throughout the portfolio life cycle. Which of the below is not something that the PMO supports the portfolio manager with?

Question178: When developing the charter, you will use multiple inputs and documents of which the portfolio Strategic Plan is one. How is the strategic plan used in this case?

Question179: You are in the toughest phase of the portfolio life cycle due to the governmental issues in your country. Yesterday night, one of the key team members quit and left the country. You have included this in the portfolio risk register while planning the portfolio because you knew that this could happen and that this key resource has family in Canada and can leave if the situation gets bad. Following this, you activated the response plan, which is to initiate a new component that will cater for reaching the deliverable in another way. However, an immediate approval is needed for initiation of this component or the end-of-month major deliverable will be delayed. To whom you should present the proposal for urgent approval?

Question180: Portfolio management roles and responsibilities are defined in the portfolio:

Question181: Which of the following are key contents of the portfolio strategic plan? (Choose two.)

Question182: A junior Portfolio manager has come to you for advice. He is hearing a lot about the definition of portfolio management, however, he is not sure anymore of the exact one. What do you, as an experienced portfolio manager tell him?

Question183: An organization has had an extensive management restructuring in which most of the senior management team has been replaced and many of the new executives have brought in a new middle management layer from their previous organizations. The new senior management team has expressed their support for the current portfolio and has planned no immediate changes or reprioritization.
However, the portfolio manager must still take this management restructuring into account by:

Question184: Your goal as a portfolio manager is to develop a strong communications management plan to keep interested stakeholders informed about your progress in portfolio management. Although you have reached out to numerous stakeholders, you know other portfolio processes also can help in this process such as:

Question185: When it comes to managing the portfolio value, one of the junior portfolio managers came to you asking about the relation between cost-benefit analysis and the efficient frontier analysis. What should your answer to her be?

Question186: With the introduction of new legislation in your company, anyone now is entitled to medical services regardless of whether or not they are employed or have any pre-existing health conditions. Your insurance company's executives have been tracking this legislation as it means significant changes for your company; many employers who obtained insurance through your company may go elsewhere for lower costs. Recognizing this legislation may lead to a loss of revenue, your company decided to merge with another insurance firm to obtain greater market share. This merger, though, means some existing projects may not be needed, and the workforce will be reduced by 20 percent, Such a significant change will impact how components are categorized in your portfolio leading to:

Question187: 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. Risk Categories, criteria and probability and impact are updated as a result of Developing the Risk Management Plan. These updates are recorded in which of the following?

Question188: Your company got recently acquired by another company and the strategic directions which your portfolio is based on have been changed. Which document do you, as a portfolio manager, update to reflect how the new strategy will be implemented?

Question189: If various elements of the governance model for the portfolio have changed, the portfolio manager should document changes to the portfolio management plan and assess the changes'effects on the dynamics of the team, the roles and responsibilities of new:

Question190: Following a recent portfolio health check, you noticed that your portfolio is not aligned with the strategic plan and actions should be taken to stop losing money. What should be your next course of action?

Question191: Assume you are managing your city's portfolio, and its overall strategic goal is to promote economic development to attract more visitors to the city. It is a difficult challenge as the city is not a major metropolitan area and also is not a preferred winter or summer destination.
Nonetheless, you are planning and allocating resources according to the city's strategy. Not to be overlooked as you do so is the need to:

Question192: In preparing your communications matrix, you identified five communication areas. One is portfolio governance decisions. A communication vehicle for these decisions is:

Question193: During one of the management meetings, an opportunity was identified. This opportunity has a huge impact on the portfolio. What is your first action as a portfolio manager?

Question194: 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

Question195: Optimizing the portfolio is a major recurring process that the portfolio manager performs throughout the portfolio life cycle in order to balance the mix of portfolio components. During this process, the portfolio manager uses a number of graphical analytical methods to help him ease the process. Which of the following is not a graphical analytical method used in this process?

Question196: A portfolio manager is developing a comprehensive portfolio management plan and is unsure which performance metrics need to be defined for the portfolio components. Which action should the portfolio manager take to define the performance measures?

Question197: A portfolio stakeholder refuses to approve a minor modification request submitted by the portfolio manager, stating that approving change requests is not within the stakeholder's roles and responsibilities. In which section of the portfolio management plan should the portfolio manager look to validate this claim?

Question198: Assume as the portfolio manager you have conducted a stakeholder analysis, gap analysis, and a readiness analysis as your cereal company is now entering the ice cream market. A team was formed and located off site to determine whether this market was one in which your company could compete, and its recommendation to do so was accepted by the Portfolio Review Board.
Now you need to:

Question199: As the portfolio manager in the third largest automotive manufacturer in your country, you have a large number of components especially new vehicles each year but also support for dealers, advertising, maintaining the brand image, increasing market share plus continuous improvement initiatives. You have contingency reserve to use to prepare to handle any risks that may occur, which is based on:

Question200: Establishing a portfolio management process starts with the development of the organizational portfolio management implementation plan. Which of the following helps while developing this plan?

Question201: 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. You are currently in the process of developing the risk management plan. Which of the following activities will you be performing?

Question202: Risks perspectives differ within the organization between executive management, operations management, portfolio management and project/program management. When it comes to Operations management, which of the following is a risk concern?

Question203: Risk management is an integral part of project, program and portfolio management and is invoked throughout the project, program and portfolio life cycle. When it comes to managing portfolio risks, which of the following activities is used

Question204: Before a new portfolio component can commence, the portfolio manager should:

Question205: Which type of analysis should be used to evaluate whether an organization can approve, fund, and execute portfolio components?

Question206: Assume you are helping the Portfolio Review Board select and implement the portfolio with the best alignment to strategy as you work to create a list for to be considered for prioritization. One possible component on the surface does not seem to be one that is profitable, but you believe that over time changes will occur that will make it cost/beneficial to pursue. This means you are using:

Question207: When defining a portfolio, what kind of evaluation criteria can a portfolio manager apply?

Question208: A portfolio manager has several portfolio communications to distribute to the steering committee and stakeholders, but this information must be sent simultaneously in order to avoid confusion.
The tool that will be most effective in distributing this information is a/an:

Question209: Assume your telecom company is time constrained and needs to be first to market with new smart phones with features that are different from those of the competition and also have the traditional features desired by your existing customers. The Portfolio Review Board meets weekly to assess performance and to consider new components. Lack of technical resources is a recurring issue. To make the case for acquiring new resources, you decided to assess capability and capacity. This approach is:

Question210: A portfolio manager is currently in the defining phase of a portfolio that aligns to a new organizational strategy. The portfolio manager is beginning to develop the portfolio charter, but is having difficulty ensuring that it is complete, comprehensive, and accurate.
As part of the portfolio charter development, the portfolio manager should perform which type of analysis?

Question211: 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?

Question212: Over the years, your organization has grown significantly as it has entered new markets while maintaining its presence in its traditional product line of security systems. The company now has eight different business units rather than three, which was the case only two years ago, and it set up funding originally such that it was only allocated to one business unit and could not be transferred to others. At the recently held Portfolio Oversight Committee meeting, five business units did not add components, but some were completed. The other three added a number of programs and projects, which were authorized. Now funding for these new components is an issue. This means:

Question213: A new component that will deliver an enhanced product manufacturing system has been presented for addition to the portfolio. The system is expected to significantly reduce costs by reducing the amount of time it takes to create product parts. However, the user interface will be difficult to work with, so any cost savings may be lost over time.
To ensure that the portfolio remains balanced and expected returns are managed, the governance board should use a portfolio:

Question214: One of your company's junior portfolio managers came to you for advice. He noticed while checking the roadmap that it does not include all the portfolio components. What should be your advice to him?

Question215: Which of the following items are considered as portfolio process assets? (Choose two.)

Question216: Assume you completed your portfolio performance management plan, and it was approved by the Oversight Committee. This plan, with an overall purpose to maximize portfolio performance, describes resource allocation and resource-related issues among other items. In it a key component is benefits realization. This emphasis on benefits planning provides:

Question217: You are a portfolio manager for a company with volatile market conditions and continuous strategic changes. It is always important for you to use methods such as simu-lation techniques, flowcharts and decision trees to be able to balance the portfolio with the actual needs. Which of the following tools and techniques you are using in this case?

Question218: A portfolio manager is prioritizing a list of potential components and wants to ensure that the application of funding achieves maximum benefit. Which tool or technique should the portfolio manager use to optimize the portfolio?

Question219: As part of the portfolio management plan, you have the "Manage Strategic Change" and the
"Change Control and Management". This is causing issues to one of your team's junior portfolio managers as she cannot understand the difference. In your opinion, what is the difference between both?

Question220: You are the portfolio management for a big corporate with existence in 3 continents. While planning the performance management and in particular the dashboards and reporting tools, which of the following options is the most important to account for the different geographical locations?

Question221: While defining the portfolio, a portfolio manager does a preliminary comparison of all inventoried portfolio components against the portfolio component definition. For this, the descriptors of each portfolio component are used in order to compare it to other components. Which of the following is not a component key descriptors?

Question222: A portfolio manager is managing a portfolio as described in the following table:

The CEO has requested that the portfolio manager calculate the health of the portfolio to achieve the benefits to the organization. The organization has placed more importance on the CPI metric than the SPI metric, weighting cost at 80% and schedule at 20%. The organization considers the portfolio health to be acceptable if benefits are within a +/- 2% tolerance level.
The portfolio manager can conclude that in relation to performance expectations, the portfolio's health is:

Question223: 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. For this, you are always on the lookout to optimize your portfolio. What can you use to start this process?

Question224: You have been assigned as the manager for a major transformation portfolio in your company.
You are acquiring the position due to the failure of the previous manager and the strategic importance of the portfolio. You start by consulting the portfolio strategic plan. What do you expect finding in that plan?

Question225: Which of the following are the input of "Optimize Portfolio"? (Choose two.)

Question226: Assume you are new to your organization and you were hired specifically to help implement portfolio management in your new manufacturing company. Having worked in portfolio management for the past five years, you know it is a major culture change. It is definitely a challenge at your new company because:

Question227: Your sponsor is under a lot of pressure from the management because the portfolio has been hit by multiple risks already and the situation is going towards its termination. Your sponsor asked you to prepare him an analysis to show the probable ROI and the confidence level in it. Which approach is the best one in this case?

Question228: A portfolio manager compares strategic objectives, prioritizes objectives, and performs strategic assessments against current enterprise portfolios. Which kind of tools and techniques is he using?

Question229: The portfolio management plan is intended to:

Question230: An organization decided to increase its business by 80% and approach new different clients. This strategy is followed because previously this organization was depending with its sales on only one client. With this new approach, you can describe the organization as being

Question231: 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 Communication closely and that the governance board and the stakeholders would want to check on the progress and performance frequently. For this you have developed a robust Communication management plan.
Which of the below is used while developing this plan?

Question232: Which of the following are the key activities with the "Define Portfolio" process?

Question233: Assume you are working to ensure your organization has a balanced portfolio. You have decided to use a bubble diagram and have set it up to show the components in terms of: ease of execution [difficult or easy] and component importance [high or low]. In such an approach, bubbles are used to:

Question234: When you are a portfolio manager, you need to do and re-do multiple processes in order to maintain the portfolio alignment to the changing strategies. Which of the following are considered outputs to the Develop Charter process?

Question235: Managing risk is key to the success of any initiative. Risk is considered to be inherent in any activity we do in project management and at any level. Risk is part of project, program and portfolio management and has a different exposure in each and every one. You are currently developing the guidelines and approaches for managing risks and are looking for methods to help you. What are you looking for?

Question236: 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 in 4 of the portfolio management processes and it serves a slightly different purpose in each and every one of them. You are currently using it in the development of your charter. What is its purpose in this case?

Question237: Managing risk is key to the success of any initiative. Risk is considered to be inherent in any activity we do in project management and at any level. Risk is part of project, program and portfolio management and has a different exposure in each and every one. Which of the following highlights this difference?

Question238: You are currently using a Comparative Advantage Analysis and conducting a what-if analysis to consider how the portfolio component and its intended benefits could be achieved by various options, including resource capability and capacity mix. In which process are you currently working?

Question239: Which of the following statement describes the process "Manage Portfolio Value"?

Question240: Which tools and techniques should a portfolio manager use to ensure portfolio efficiency and effectiveness in meeting the organization's strategic goals?

Question241: Strategies are changing, the portfolio mix is changing, the portfolio is progressing and you are doing a great job optimizing the mix of components. What tools and techniques are you using in the case?

Question242: You are currently in the process of defining a portfolio by forming the qualified list of components that will be later evaluated, selected and prioritized. What do you expect as outputs from this process?

Question243: You have been newly appointed as a portfolio manager and found out that your predecessor did not develop a Portfolio Risk Management plan as he thought that it is not necessary in the case where he has a risk register. One of your first activities was to develop the missing plan. To do this, you needed to consult with stakeholders in order to fetch risk information in order to identify risks and plan risk management. Which of the following inputs to this process will help you in identifying which stakeholders to analyze?

Question244: You're performing capability and capacity analysis to develop a portfolio performance management plan. What may be included in the capability and capacity analysis? (Choose two.)

Question245: Many people in your country are no longer eating food from cans because of the risk of botulism and eColi O1H747. Your low acid canned foods company is seeing its revenues decrease as a result, and it is updating its overall strategy for the company to diversify into other markets as well as to add an aggressive marketing campaign to ensure the public that its low acid canned foods are generally recognized as safe by the Food and Drug Administration. This means in terms of portfolio management:

Question246: As a portfolio manager, you know that optimizing a portfolio has the focus of maintaining a balanced portfolio. When optimizing a portfolio, what is the state of the portfolio components that will be balanced?

Question247: You have scored the portfolio components and are analyzing the data in order to prioritize the components. Using the following scoring table, which of the options represents the correct Components Priority? Taking into consideration that the costs for each component is Component A: 10 K USD, Component B: 15 K USD, Component C: 16 K USD, Component D: 13 K USD and Component E: 11 K USD; The budget for this portfolio is a fixed one of 40 k USD Larger image

Question248: Which methods are most effective in determining stakeholders'communication needs?

Question249: Which type of analysis should the portfolio manager use to create a portfolio roadmap?

Question250: Stakeholders are an integral part of the portfolio. The portfolio manager will work with the stakeholders to plan, execute and eventually deliver and close the portfolio. While developing the performance management plan, the portfolio manager plans a series of sessions with key stakeholders to define Key Performance Indicators (KPIs). What are these sessions collectively referred to in a portfolio?

Question251: Following a major organizational restructuring, new portfolios are currently being initiated. You have been assigned the position of portfolio manager on one of the major portfolios and are currently in strategic management. You are currently performing cost-benefit analysis. What is part of this analysis?

Question252: Roadmaps may be prepared to show different elements, and at the beginning they may not provide details of the various components. As a high-level plan at the portfolio level, the roadmap:

Question253: Each portfolio risk should have a designated person as its owner. As the portfolio manager assigns the owner, the main responsibility is to:

Question254: 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. For this you maintain a risk register. The risk register is used throughout the portfolio life cycle in order to track and manage risks. It is continually updated throughout the portfolio life cycle. As a portfolio manager, you know that the risk register includes all of the following except

Question255: You are planning how to communicate with stakeholders for your portfolio. Which inputs do you need? (Choose three.)

Question256: The portfolio is undergoing and your are now in the monitoring and controlling phase. Two of your team members are arguing about what to use in order to determine decisions to be made with regards to the portfolio and its components. What should be your advice to them?

Question257: Your portfolio management team is a bit confused about the order of steps to follow when defining a portfolio. They have been having debates and they came to you asking for the correct order of steps

Question258: Which is the most critical risk based on probability and impact?

Question259: 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

Question260: Which type of portfolio plan is most appropriate for a portfolio manager to use in finding target audiences and rules for disseminating portfolio issue-related actions?

Question261: When assessing a portfolio's level of risk, which organizational levels should a portfolio manager focus on for input?

Question262: Which of the following is not an input for "Develop Portfolio Charter"?

Question263: After receiving a regular resource utilization report, the portfolio manager has identified two portfolio components that are competing for the same key resource. The unavailability of this resource has the potential to delay both projects.
Which action should the portfolio manager take?

Question264: Your company is currently on the verge of bankruptcy due to the lack of transparency within the organization; this alerted the CEO to take decisive actions and request that new reporting lines be established in order to be fully transparent. The new reporting lines triggered changes in roles & responsibilities for managing communication and communication policies & constraints. Where are these changes reflected when it relates to your portfolio?

Question265: Which type of analysis would be most helpful to a portfolio manager at an organization that is comparing its current portfolio components with a new strategic direction?

Question266: Stakeholders expectations and requirements change throughout the portfolio life cycle. New stakeholders can be added or removed and requirements need to be continuously solicited in order to keep the portfolio aligned with stakeholders expectations. What is the process for soliciting requirements called?

Question267: You have been assigned as a consultant to give your expertise on a failing portfolio which is critical to the success of your client's organization. You are now in the process of reviewing the portfolio management plan. What do you expect to see as part of this plan?

Question268: Assume your company is a leading producer of AA and AAA batteries. However, it is a competitive market, and customers desire batteries with a longer life and a smaller size so they will not require replacement. As you set up categories for portfolio components, you will continue to produce your current product line as well as pursue advanced products to meet customer needs. A useful component category, therefore, is:

Question269: The existing portfolio manager was replaced by a new portfolio manager and the analysis has shown that the distance between the pessimistic and best case scenario of the new portfolio manager is larger than the old one, which kind of manager is the new one?

Question270: A recent development in the market gave your competitors a leading edge. Your company's CEO and executive members want to focus on new developments and gain the market leadership once again. You wanted to show the new structure to the Portfolio stakeholders and strategies have changed. As a portfolio manager, your best course of action is to perform a

Question271: Assume your company recently diversified, and in addition to producing its recognized brand of ice cream products, it now also is producing cereal and nutritional products. Assume you have been using the Efficient Frontier to manage portfolio value. With diversification to these new products:

Question272: Working previously in the financial industry and studying finance and risk in graduate school, you are familiar with Markowitz's Efficient Frontier theory. Now assume you are the portfolio manager for a state government agency. Your agency has a reputation of being risk adverse but given recent budget cuts, you have convinced your executive team it needs to pursue some new programs and projects to demonstrate its benefits to the state. You decided to apply the Efficient Frontier concepts to show them the current state of its components in terms of risk and associated costs. You explained the portfolio is efficient if it has:

Question273: A big strategic change occurred at the organization level and has impacted multiple portfolios in the organization including yours. The sponsor has asked you to analyze the change and update the needed documents. You managed this change and are currently updating the Portfolio Management Plan. Which of the following are part of this update

Question274: Each year, you update the portfolio roadmap so people within the organization can see component status, interdependencies, constraints, and business value, among other things. This year, however, two major programs in the portfolio were cancelled as they were government contracts, and the government lacked funds to complete them. Your management then had to reduce staffing. These two programs had dependencies with other components in the portfolio.
This means that:

Question275: You have been receiving complaints from Key Stakeholders about multiple projects not being initiated, also they have great strategic alignment. What should have been done to avoid this?

Question276: Based on the following table, assume you have been asked to perform a prioritization analysis based on these data. You realize risk is a major concern to the company, but you have some data available about potential benefits. These data show A and D have the greatest benefits. A and D are followed in terms of benefits by C, then B, then F, and finally E. Assume three of the programs and projects can be added to the portfolio when the Board meets. Your recommendation is to select:

Question277: A new product development subportfolio has been cancelled at the last steering committee meeting due to tight budget constraints. What is the next step the portfolio manager should take as part of the manage supply and demand process?

Question278: The Scenario Analysis is used twice as a tool and technique, once while developing the charter and another time while managing Supply and Demand (It also exists as part of the quantitative and qualitative analysis as part of the optimize Portfolio process). When it comes to Manage Supply and Demand, which of the following represents a correct description of the Scenario Analysis?

Question279: A recent layoff has left an organization with fewer employees than the current strategic portfolio requires. Which action should the portfolio manager take first?

Question280: You are the manager for a major industrial portfolio aiming to rebuild the vintage building in your region. Having a tight schedule, a large number of stakeholders including the public, in addition to a strict budget, you know that you will be managing the portfolio closely and that the governance board and the stakeholders would want to check on the progress and status frequently. For this you started to develop a robust Portfolio management plan. Which of the following can be used when starting this process?

Question281: The portfolio management process ensures the components are aligned to goals. However, it is driven by:

Question282: Multiple changes have been recommended and approved in your portfolio and the need for continuous optimization seems to never end. This is normal in a portfolio and optimizing the components mix and the use of resources is key to success. As a portfolio manager you will be re-visiting the Optimize Portfolio process countless times. Which of the following are considered outputs to this process?

Question283: You are managing a highly technical portfolio and are already mid-way through the implementation. You know that the communication is key to success as all the involved parties and stakeholders have a high technical exposure and you should maintain their buy-in along the lifecycle. Part of your activities is to collaborate with stakeholders to reach a common ground and to resolve conflicts. Which of the following is considered a collaboration technique?

Question284: The portfolio manager has created three portfolio scenarios which will be used to optimize resource allocations and scheduling. The initial output of this process will be updates to the portfolio:

Question285: Risks are very important to manage in portfolio management and organizations can choose to embrace risks with the potential of high rewards. As a portfolio manager, planning and managing risks is important. Risks are categorized in order to ease the process. Which of the following are considered as risk categories that a portfolio manager can use?

Question286: The first step in initiating a new portfolio component is typically:

Question287: Assume you are putting together for the Portfolio Review Board several options for consideration of potential components and current components. You are using an approach with different probabilities to determine outcomes and EMV. Which of the following would you recommend realizing Components A and B are new, while C and D are in progress:

Question288: The Portfolio Management Plan is an important document that is referenced throughout the portfolio life cycle. Which of the following is correct regarding the Portfolio Management Plan purpose and focus?

Question289: One of your team members who is particularly interested in becoming a portfolio manager has asked you what is the relation between the Portfolio roadmap and the Programs/Projects roadmaps? What should be your answer to him?

Question290: After the second shutdown of the Government, your Agency Administrator realized that some essential programs had to continue even during the shutdown, some existing work along with some programs and projects in the pipeline perhaps were not needed, and resources may require reallocation. This example shows the:

Question291: In your architectural organization, each program or project requires some specialized subject matter experts at certain time frames. Because of the interdependencies between components, often these SMEs are needed at the same time. Assume since this is a critical issue in the company, it invested in resource planning and allocating software, and dashboards can be prepared. The goal is to use these dashboard reports to:

Question292: In defining the portfolio charter, the portfolio manager notices that two goals are incompatible and both goals align to the organizational strategy. Which action should the portfolio manager take?

Question293: Which of the following statement describes the portfolio roadmap correctly?

Question294: Assume you recently were hired to be the first portfolio manager at the leading producer of soft drink beverages. While the company is well known for one product, it wants to be the leader in other products and services as well. When you were hired, you told the CEO it would take time to fully implement portfolio management, and you first would prepare a number of artifacts. He set up a Portfolio Review Board, and its members are reviewing your work. As they reviewed the portfolio management plan, one of the members suggested you prepare an in-depth portfolio performance plan. Your first step is to:

Question295: One key artifact to review as the portfolio communications management plan is prepared is the:

Question296: Which of the following are qualitative measures? (Choose two.)

Question297: You have been asked to be the manager for a governmental portfolio, and your starting point should be tendering a strategic plan to the board for validation and approval for continuation.
Which documents/artifacts do you have debuting the portfolio that you can use to develop the strategic plan?

Question298: While managing the portfolio value, it is important to know the different roles of responsibilities and accountabilities for the actual benefits realization in order to be able to aggregate the correct value from different components; in which document are these roles and responsibilities mentioned?

Question299: A group of stakeholders complains to the portfolio manager that too much information is being distributed, some of which is redundant. In order to meet their expectations, the portfolio manager should:

Question300: You are managing a portfolio in a functional organization and resources are shared between operations and projects. You are continuously performing capability and capacity analysis in order to optimize the portfolio. Which of the following capability and capacity analysis is used to limit the number AND size of components the organization can execute?

Question301: You want to find the migration actions for an issue. Which artifact should you check?

Question302: Your portfolio has encountered a big issue and multiple management decisions have been taken in order to re-align the portfolio with the strategic objectives. What is the tool that you use in order to report major risks and issues to stakeholders?

Question303: 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. What is the expected outcome from managing supply and demand?

Question304: 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:

Question305: When managed correctly, the balanced scorecards can change the way an organization does business. Balanced scorecards keep focus on results. As a portfolio manager, you use the balanced scorecards while developing the Portfolio Management Plan in order to

Question306: 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?

Question307: 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 continuously report risks and issues to stakeholders. One of the key stakeholders is furious as he cannot find an issue that has occurred a week ago in the risk register.
What should you do in this case?

Question308: An organization's portfolio roadmap is developed, reviewed, and approved according to best practices. Well into the execution of the roadmap, the portfolio manager is informed by a program manager that due to the illness of a critical program member, the program team will not be able to meet its schedule and scope targets with the remaining resources.
The portfolio manager's first action should be to:

Question309: You are the manager of a major portfolio with a critical strategic objective. You have just finalized the roadmap development and wanted to have a quick discussion on it with the team. One of your team members asks you your opinion on the relation between Portfolio roadmap and Strategic Objectives.
What would your answer be?