250 ◾ PfMP® Exam Practice Tests and Study Guide
144. Working for the leading producer of containers for ice cream, your company
is facing more competition. When other companies were producing square
containers, your company was the only one producing round ice cream
containers. The competitors are now doing the same. You have been hired
as the portfolio manager to set up portfolio plans and a process to follow to
add new products and services to the company’s product line. You are pre-
paring your portfolio management plan and want to involve as many people
in your company as possible so they feel they contributed to the plan and
are familiar with its objectives. You decided to:
a. Set up cross- functional focus groups
b. Interview a representative from each department
c. Use brainstorming
d. Use surveys
145. Managing stakeholder expectations is critical to success regardless if one is
the portfolio manager or is working on programs, projects, or in functional
areas. As a portfolio manager, establishing working relationships with stake-
holders is fostered through:
a. Involving them in preparing policies and procedures
b. Identifying and classifying them
c. Preparing and following a stakeholder expectations plan
d. Preparing and following a transparent communications strategy
146. In preparing a list of all the work under way in your new product develop-
ment organization, a number of the active components have key interfaces
and dependencies with other components. These dependencies must be
tracked, and one way to do so is to:
a. Show them in the portfolio management plan
b. Use Key Performance Indicators
c. Use the roadmap
d. Document the dependencies in each component’s program or project plan
Practice Test 2 ◾ 251
147. Assume since you are the portfolio manager for your food and beverage
company, you are preparing a portfolio risk management plan. This plan is
needed as there are numerous risks now from external consumer groups
about the nutritional value of some of your products plus the company must
comply with an increasingly large number of regulations by the Agriculture
Department and the Food and Drug Administration. There are also numer-
ous inspections of the quality of the products. Your Portfolio Review Board
asked you to prepare this plan in order to:
a. List the negative and positive risks
b. Provide an approach to assess risks in its existing components
c. Provide an approach to assess risks in proposed components
d. Determine the number of high risk, high return components to pursue
148. Assume your organization is committed to a management- by- projects cul-
ture. Its leaders in approving components to be part of the portfolio also
consider the structure required to manage each one, and based on the
structure, resource allocation then is a determining function. Its top ve
components in the portfolio are ones that operate in a projectized structure
meaning that:
a. External resources can be acquired easily since a contracting ofcer is
part of the team
b. The capabilities and competencies of the people working on these ve
components are known
c. The emphasis is on ensuring resources supporting these components are
competitive and cannot be easily purchased
d. Resources are unlimited
149. As the portfolio manager, you need to assign performance reviews and
reporting roles and responsibilities. Assume you are working for the leading
professional association in project management, and it has six distinct busi-
ness units. Each of these business units has programs, projects, and opera-
tional activities under way. You are assigning these roles and responsibilities
as you:
a. Implement your portfolio management plan
b. Set up a process for an oversight committee at the association at the high-
est level
c. Implement organizational structure analysis
d. Integrate the various portfolio plans for ease of reporting on progress
252 ◾ PfMP® Exam Practice Tests and Study Guide
150. Assume you are charged with implementing portfolio management in your
City’s Transit Authority at the enterprise level. This is a coveted assignment,
and you are pleased you were selected as its lead as you saw its effective-
ness while doing some benchmarking with other transit authorities in your
country. You have prepared a communications plan that the CEO personally
sent to stakeholders in the Authority. Your next step is to:
a. Begin drafting the processes to be followed
b. Convene a meeting of the Portfolio Review Board
c. Set up training for staff and stakeholders
d. Document external factors that will affect the implementation
151. After a recent government shutdown, your executives realized that some
functions in your Agency were not missed, but others needed to be added
to better support the strategic objectives. As the portfolio manager, you need
to prepare an updated portfolio strategic plan. In order to do so, you should:
a. Prepare an analysis to support reallocation of resources
b. Determine if the Agency has the needed competencies for the new func-
tions or whether contractors will be needed
c. Show where there are gaps in focus, investment, or alignment
d. Revisit the prioritization process to guide you as you update this plan
152. Recently, the Portfolio Review Board met and optimized the portfolio
because of some strategic changes. As it was balanced, some components
were added, and others were terminated. This optimization meant updates
to the portfolio management plan also were needed. An example of an item
to update is:
a. Ways to maintain a balanced portfolio
b. Organizational areas in the portfolio
c. Portfolio guidelines
d. Ranking criteria
153. As you have worked to improve the quality of information on the portfo-
lio to internal and external stakeholders, you found you needed to update
reports and plans. You then reviewed the portfolio process assets and need
to update:
a. Dashboards
b. Trend analyses
c. Component status reports
d. Meeting minutes
Practice Test 2 ◾ 253
154. Portfolio risks may be identied by anyone in the organization, and those
organizations with mature portfolio management processes and involvement
from stakeholders encourage people to openly communicate about risks.
This open approach can promote positive risks and minimize the impact of
negative risks. The Procurement and Contracts Director recently expressed
concern about an excessive reliance on a specialized training provider. This
is an example of a:
a. Positive or negative risk
b. Negative risk
c. Structural risk
d. Reputation risk
155. Assume your company, established almost 80years ago, is well- known for
its ice cream products and has franchises throughout the county. But, the
government is focusing on ways to try to eliminate obesity in both adults
and children. Sales are decreasing, and some of the franchises are closing.
The company decided to change its strategy to continue with the ice cream
products but to enter the nutritional cereal market as well. As the portfolio
manager you realize this is a major strategic change and evaluated the exist-
ing portfolio and its components against the updated strategy as:
a. Many existing components will no longer be needed
b. Descriptors and categories may need change
c. A weighted ranking and scoring technique should be used
d. Both quantitative and qualitative analyses are required
156. Since your government agency is undergoing a strategic change and will
now use contractor staff for all operational activities beginning with the new
scal year in two months, as the portfolio manager, you must update the
portfolio strategic plan. Among the various items in the plan, you need to
update which of the following sections:
a. Communications management
b. Stakeholder engagement
c. Benets
d. Performance metrics
254 ◾ PfMP® Exam Practice Tests and Study Guide
157. Assume your 500-person consulting company has taken time to develop
and maintain competency proles for each staff members. It also has set
up resource pools based on job title and uses earned value management.
Your company recently won two major contracts, and you were the proposal
manager for both of them. As you assess resource requirements:
a. You need to use external consultants for some of the work as staff are
allocated on other projects
b. Reports on resource availability should be useful
c. Your rst step is to review the staff competency proles
d. You need to see if any projects recently have been completed
158. Implementing portfolio management is a culture change and takes time to
do so effectively. However, it is necessary to describe how the portfolio will
deliver value to the organization, which is stated in the:
a. Portfolio performance plan
b. Key performance indicators
c. Portfolio benets realization plan
d. Portfolio charter
159. 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 out-
comes and EMV. Which of the following would you recommend realizing
Components A and B are new, while C and D are in progress?
Probability
Component A Component B Component C Component D
Outcome EMV Outcome EMV Outcome EMV Outcome EMV
1 60% $15,000 $9,000 $13,000 $7,800 $20,000 $12,000 $12,000 $7,200
2 25% $17,000 $4,250 $15,000 $3,750 $12,000 $3,000 $10,000 $2,500
3 15% $20,000 $3,000 $15,000 $2,250 $10,000 $1,500 $8,000 $1,200
a. Component A
b. Component B
c. Component C
d. Component D
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