Practice Test 1 ◾ 189
95. b. Portfolio management plan
The purpose of this plan is to dene management’s approach and intent
to identify, approve, procure, prioritize, balance, manage, and report on
the components in the portfolio.
Portfolio Management Standard, p. 66
Task 4 in the ECO in Governance
96. d. Analyze the physical needs
Capacity and capability analysis are more than resources alone. In this situ-
ation, an asset capability and capacity analysis is appropriate to understand
the physical needs including equipment, buildings, and systems to under-
stand any constraints that may limit existing or proposed components.
Portfolio Management Standard, p. 74
Task 7 in the ECO in Performance
97. d. Project B but other qualitative items are not available.
Based only on the results of the benet/ cost analysis, Project B is pre-
ferred as its Benet Cost Ratio is 1.67. However, a weakness of only
using benet/ cost analysis is that other qualitative items are not avail-
able, which if known may change the recommendation.
Rechenthin, p. 158
Portfolio Management Standard, p. 51
Task 7 in the ECO in Strategic Alignment
98. c. Monte Carlo analysis
Monte Carlo Analysis is another form of probability analysis, a tool and
technique in the Optimize Portfolio process, in which a model is com-
puted many times with the input values chosen at random from the
probability distribution of these variables.
Portfolio Management Standard, p. 75
Task 7 in the ECO in Performance
99. b. Documented these decisions in portfolio reports
Portfolio reports are an output of the Manage Portfolio Risks process.
Governance recommendations should be part of the portfolio reports as
managing risks produces the need for various reports about the portfolio.
Portfolio Management Standard, pp.134–135
Task 6 in the ECO in Risk Management