Working to manage portfolio value is a continuous task. In doing so, as the portfolio manager, you review the monthly and any ad hoc reports submitted by component managers. This month you saw there was an excellent opportunity for major cost savings in two components in the top five on the portfolio list; however, to realize this cost reduction, these components require resources to be reallocated from other components in progress for six months. These forecasts then:

1. A. Should be verified by independent estimators for accuracy
2. B. Require validation by the CFO and his staff
3. C. Should be accompanied by an analysis of earned value data to ensure the components are using the same method of reporting
4. D. Are recommended for consideration by the Portfolio Review Board

Correct Answer: D

As a portfolio manager and in the aim of defining the preliminary list of components to be included in your portfolio, which will serve as a starting point for developing a portfolio. You start by identifying existing and potential portfolio components by reviewing documentation such as business plans/proposals in order to

1. A. Create a basis for decision making
2. B. Create portfolio scenarios
3. C. Provide a guiding framework to operationalize the organizational strategic goals and objectives
4. D. Understand the strategic priorities

Correct Answer: B

As you are the portfolio manager for your state government agency, which is undergoing a series of budget cuts, you are focusing attention on managing risks to the portfolio as the budget is reduced. You realize in this process the time and budget for risk management also will be reduced; these data are in the:

1. A. Portfolio performance plan
2. B. Portfolio strategic plan
3. C. Portfolio management plan
4. D. Portfolio financial plan

Correct Answer: C

A new portfolio is initiated with you as the portfolio manager, you started by developing the portfolio strategic plan and are currently reviewing the Organizational Process Assets; which of the options can be a part of this input?

1. A. List of portfolio components and Portfolio component selection criteria
2. B. Portfolio Components files
3. C. Inventory of Work
4. D. IT Strategies and Policies

Correct Answer: D

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:

1. A. Resource re-allocation is required
2. B. Risk management is essential
3. C. The ROI of the new components must be determined
4. D. Portfolio rebalancing has led to the new components being in the top five priority list

Correct Answer: B