A portfolio manager is analyzing the quarterly performance of a portfolio. The planned ROI for the quarter was 12%, but the actual ROI is 9%. The variance is primarily due to two projects that experienced significant cost overruns. What should the portfolio manager do first?

Recommend terminating the two projects immediately to prevent further cost overruns.

Adjust the portfolio's ROI target downward to reflect the actual performance.

Conduct a root cause analysis to determine why the cost overruns occurred.

Reallocate the budget from other projects to cover the cost overruns.

A portfolio manager is reviewing the portfolio's performance. The portfolio currently has 60% of its budget allocated to projects in the 'growth' strategic theme, but these projects are consistently underperforming in terms of ROI. Projects in the 'efficiency' theme are performing well but are underfunded. What should the portfolio manager do?

Reallocate some budget from underperforming growth projects to efficiency projects.

Keep the current allocation to maintain strategic alignment with the growth theme.

Terminate all growth theme projects and invest entirely in efficiency projects.

Increase the overall portfolio budget to fund both themes adequately.

Which of the following is typically included in a portfolio performance report?

Detailed source code of portfolio systems

Key performance indicators and trends

Only the names of underperforming team members

A list of all risks without any analysis

A portfolio manager is analyzing the variance between planned and actual benefits for a portfolio of digital transformation projects. The variance is +15% (actual benefits exceed planned). However, the project managers report that the benefits were achieved by reducing the scope of some projects. What is the most appropriate interpretation?

The portfolio is performing well, and the positive variance should be celebrated.

The variance is unfavorable because scope reductions are not acceptable.

The variance should be ignored because it is positive.

The variance is favorable, but the root cause should be investigated to ensure it aligns with strategic objectives.

What is the primary purpose of applying lessons learned from performance analysis?

To replace the need for future analysis

To create a historical record for audits

To refine processes and enhance future portfolio performance

PMIPortfolio Management Professional (PfMP)

Domain 3Objective 2

Performance Analysis PFMP Practice Questions (Page 4)

Part of the Portfolio Performance domain, which accounts for 25% of the PFMP exam. PMI does not publish an official question count, but from its 240-minute exam (~95–160 total, ~24–40 in this domain), expect 8–13 from this objective — we provide 34 practice questions to prepare you well beyond it. (estimate)

34questions here

7free pages

10concepts

25%of the exam

Questions 16–20

16application · medium
A portfolio manager is analyzing the quarterly performance of a portfolio. The planned ROI for the quarter was 12%, but the actual ROI is 9%. The variance is primarily due to two projects that experienced significant cost overruns. What should the portfolio manager do first?
Select an answer first
17application · medium
A portfolio manager is reviewing the portfolio's performance. The portfolio currently has 60% of its budget allocated to projects in the 'growth' strategic theme, but these projects are consistently underperforming in terms of ROI. Projects in the 'efficiency' theme are performing well but are underfunded. What should the portfolio manager do?
Select an answer first
18foundation · easy
Which of the following is typically included in a portfolio performance report?
Select an answer first
19expert · hard
A portfolio manager is analyzing the variance between planned and actual benefits for a portfolio of digital transformation projects. The variance is +15% (actual benefits exceed planned). However, the project managers report that the benefits were achieved by reducing the scope of some projects. What is the most appropriate interpretation?
Select an answer first
20foundation · easy
What is the primary purpose of applying lessons learned from performance analysis?
Select an answer first

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Performance Analysis PFMP Practice Questions (Page 4)

Questions 16–20

A portfolio manager is analyzing the quarterly performance of a portfolio. The planned ROI for the quarter was 12%, but the actual ROI is 9%. The variance is primarily due to two projects that experienced significant cost overruns. What should the portfolio manager do first?

Which of the following is typically included in a portfolio performance report?

What is the primary purpose of applying lessons learned from performance analysis?

Keep studying — Portfolio Performance