Question 1

In a portfolio, data is an abundant asset, and managing the information aiming for a a better decision making is

critical. For this you use a variety of Quantitative and Qualitative analysis methods. These methods are

performed in 4 of the portfolio management processes and serve a slightly different purpose in each and every

one of them. Considering that you are currently performing risk assessment and handling risk responses, how

can you make use of the quantitative and qualitative analysis?

Options :

A : Performing resource leveling, project sequencing techniques and dependency analysis

B :

Performing Cost-benefit analysis, quantitative analysis, scenario analysis, probability analysis, SWOT

analysis, Market/competitor analysis and business value analysis

C : Performing Status and trend analysis, Rebalancing methods, Investment choice tools, exposure chart

D : Performing Quantitative analysis and Sensitivity analysis

Answer: D

Question 2

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 3

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:

Options :

A :

Visualize components

B : Frame the balancing problem

C : Provide scores as outputs

D : Focus on existing components

Answer: A

Question 4

You have a portfolio component that is using earned value analysis. It is at the 15% point of completion, and it

is evident that it cannot be completed as planned. Adding resources will not solve the problem, and at the last

Portfolio Review Board meeting, the Board members decided to terminate this component based on its various

risks. They then decided the resources allocated to this component could be transferred to other portfolio

components enhancing their early completion and avoiding risks from competitors. As the portfolio manager,

you:

Options :

A :

Worked with the component managers to ease the transition

B : Documented these decisions in portfolio reports

C : Set up both quantitative and qualitative metrics to determine the usefulness of adding resources to the other components

D : Met with the affected component managers and their teams to explain these changes

Answer: B

Question 5

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:

Options :

A : Conduct another survey

B : Hold some lessons learned sessions

C : Have a brainstorming session

D : Convene a focus group

Answer: C

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