Task 6 PFMP Practice Questions (Page 5)

Questions 21–23

1. 21application · medium

   A portfolio manager is evaluating a proposed project to enter a new geographic market. The project has a high initial investment and a long payback period. The organization's strategy is 'global expansion'. Which additional factor is most important to consider when evaluating this project's alignment?

   • AThe project's impact on the organization's current market share.
   • BThe project's potential to create a competitive advantage in the new market.
   • CThe project's alignment with the organization's risk appetite.
   • DThe availability of internal resources to execute the project.
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2. 22expert · hard

   A portfolio manager is evaluating a project that was proposed by a powerful executive. The project has a strong emotional appeal and is supported by the executive, but it has a low strategic alignment score and a negative NPV. Another project, with a lower profile, has a high strategic alignment score and a positive NPV. The portfolio manager must decide which to recommend. What is the most appropriate action?

   • ARecommend both projects, even if it means overcommitting resources.
   • BRecommend the executive's project to maintain political support and avoid conflict.
   • CAsk the executive to withdraw the project to avoid a difficult decision.
   • DRecommend the lower-profile project based on its strategic alignment and financial value, and present a transparent analysis to the governance board.
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3. 23foundation · easy

   What is the primary basis for prioritizing portfolio components?

   • ATheir estimated duration and complexity
   • BTheir alignment with industry trends
   • CTheir strategic value and alignment with organizational goals
   • DTheir potential to generate immediate revenue
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