Question 1

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?

Options :

A : Capability and Capacity Analysis

B : Communication Methods

C : Elicitation Techniques

D : Communication Requirements Analysis

Answer: C

Question 2

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 3

Managing Strategic Change is an integral part of any portfolio in order to remain aligned with the strategic objectives. Your portfolio has undergone a major strategic change and you are currently determining the volume of work required to do in order to re-align the portfolio. What are you currently using?

Options :

A : Change Analysis

B : Gap Analysis

C : Readiness Assessment

D : Stakeholder Analysis

Answer: B

Question 4

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

Options :

A :

Tornado Diagram

B : Risk vs. Return charts

C : Burn Down/Up charts

D : Monte Carlo Analysis

Answer: A

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