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PMI Exam PfMP Topic 1 Question 3 Discussion

Actual exam question for PMI's PfMP exam
Question #: 3
Topic #: 1
[All PfMP Questions]

While defining the portfolio mix, the portfolio manager performs a categorization of the portfolio components based on multiple categorization criteri

a. Which of the following is considered as a portfolio component category?

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Suggested Answer: C

The number of categories is usually limited. Examples include: Increased profitability (revenue increase, generation, cost reduction and avoidance), Risk reduction, Efficiency improvement, Regulatory/compliance, Market share increase, Process improvement, Continuous improvement, Foundational (e.g., investments that build the infrastructure to grow the business), and Business imperatives (e.g., internal toolkit, IT compatibility, or upgrades)


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