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. When it comes to the optimizing portfolio, what is the purpose of using this analysis?

1. A. Performing Status and trend analysis, Rebalancing methods, Investment choice tools, exposure charts
2. B. Performing resource leveling, project sequencing techniques and dependency analysis
3. C. Performing Quantitative analysis and Sensitivity analysis
4. D. Performing Cost-benefit analysis, quantitative analysis, scenario analysis, probability analysis, SWOT analysis, Market/competitor analysis and business value analysis

Correct Answer: D

Consider you have the following efficient frontier graph with multiple portfolios on it. Which portfolio do you choose? Larger image

1. A. Portfolio D
2. B. Portfolio B
3. C. Portfolio C
4. D. Portfolio A

Correct Answer: A

Portfolio managers tend to use the efficient frontier analysis as a modeling approach that gives decision makers the analytical tool to optimize portfolios given resource constraints such as risk. In which of the Portfolio management processes the efficient frontier is mostly used

1. A. Optimize Portfolio
2. B. Manage Supply & Demand
3. C. Manage Portfolio value
4. D. Manage Portfolio Information

Correct Answer: C

You are working to optimize your portfolio and determine a priority list of components to pursue. In your product development company, of the triple constraints, quality and scope dominate. This does not imply that schedule and budget are not important, but since the company requires regulatory approval for its products, quality dominates the company. Quality goals that are too low may lead to end-user dissatisfaction; however, goals that are too high may be too costly to the company. Therefore it is important to consider:

1. A. Market analysis
2. B. The value proposition
3. C. Cash-flow requirements
4. D. Risk analysis and assessment

Correct Answer: A

In managing strategic change, the portfolio manager performs stakeholder analysis in order to consider the changing requirements. One of the key stakeholders expressed concerns about the lack of recognition of the value contribution of his department. The portfolio manager is not convinced with the level of value contribution. Which of the following is considered the best approach to take?

1. A. Accept the statement as it is a key stakeholder and the portfolio manager should remain in good contact with him
2. B. Reject the statement
3. C. Assign an owner to follow up on this concern and take a decision accordingly
4. D. This is a key stakeholder and his expectations and requirements should be taken into consideration for further analysis

Correct Answer: D