Question 1

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

Options :

A : Portfolio Organizational Structure

B : Communication and Performance Management

C : Stakeholder Engagement

D : All of the options

Answer: D

Question 2

A portfolio manager on one of the major sub-portfolios in your portfolio has tendered his resignation and gave you a 2 months notice. This unexpected change will require you to take immediate action with the governance board. Which of the following processes will be handling this situation?

Options :

A : Manage Portfolio Risk

B : Provide Portfolio Oversight

C : Manage strategic change

D : Manage Supply & Demand

Answer: B

Question 3

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:

Options :

A : A mix of components—from high risk/high return to low risk/low return

B :

The ability to quantify the value of risk in monetary terms

C :

The possible overall portfolio value with the greatest possible benefits

D :

The best possible expected level of return for its level of risk

Answer: D

Question 4

Assume you are the portfolio manager for your pork producing company, the market leader in your country.

Over time, the industry has recovered from trichinosis as a risk. Your company has added new components to

its portfolio, and many have been to demonstrate to the public that its products are safe. It implemented the

Agriculture Department's and Food and Drug Administration's Hazard Analysis and Critical Control Point

(HACCP) regulations and is enhancing its image as 'the other white meat'. However, now the entire industry is

faced with a new epidemic known as porcine epidemic virus, which is affecting pigs in 22 different states, and

profits have decreased significantly. New components now must be added to the portfolio. This situation

shows:

Options :

A : Resource re-allocation is required

B : Risk management is essential

C :

The ROI of the new components must be determined

D :

Portfolio rebalancing has led to the new components being in the top five priority list

Answer: B

Question 5

Throughout the course of the portfolio lifecycle, components are initiated, terminated and updated. In order to be initiated, portfolio components receive go/no-go decisions during governance meetings. During which process the go/no-go decisions are taken?

Options :

A : Review Meetings

B : Provide Portfolio Oversight

C : Authorize Portfolio

D : Manage Strategic Change

Answer: C