Question 1

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 2

For years, your aerospace company has been a leader in the development of sophisticated avionic hardware

systems around the world. The executives want to continue with this well-recognized product line, but also

they decided it is time to move into state-of-the art software to complement the hardware products. You have

been asked to assess whether there are skill set limitations in the company to assess resource capacity

internally. To do so, you decide to:

Options :

A : Focus on needed competencies and develop competency profiles for the internal staff

B :

Interview staff members based on performance evaluations to determine their interest in the new product

line

C :

Work with Human Resources and review the education backgrounds of internal staff and see if people

have taken recent training

D :

Set up a contingency plan by asking the Procurement Department to issue a Request for Information to

external consulting firms

Answer: A

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

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

Options :

A : Risk Response

B : Risk Assessment and Risk Response

C : Risk Planning

D : Risk Assessment

Answer: B

Question 5

Resources allocation and optimization for use is key to a successful portfolio. You have assigned human

resources, funds and other required assets to a component that you have initiated recently. What should have

been done prior to being able to to that?

Options :

A :

Managed Portfolio Value

B : Communicated the decision to all stakeholders

C : Prioritized the component

D : Authorized the component

Answer: D

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