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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?
Suggested Answer: C
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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)
15 comments · newest first
EL
Elmer
1 year ago
Just to clarify, all these options can fit into portfolio components.
JE
Jesusita
1 year ago
Wait, are we really considering Process Improvement as a category?
LI
Lindsay
1 year ago
All of the options makes sense to me!
AL
Alise
1 year ago
I think Risk Reduction is more relevant here.
DE
Dexter
1 year ago
Continuous Improvement is definitely a category.
JI
Jina
1 year ago
I’m a bit confused because "All of the options" seems too broad, but it might actually be the right answer if they all relate to portfolio components.
JA
Janet
1 year ago
I practiced a similar question where "Process Improvement" was mentioned as a category, so I’m leaning towards that being correct here too.
JO
Joanne
1 year ago
I feel like "Risk Reduction" is definitely a key component, but I'm not entirely sure if it’s the only one that qualifies.
TI
Tina
1 year ago
I think I remember that portfolio components can be categorized in various ways, but I'm not sure if "Continuous Improvement" fits as a category.
IS
Isabelle
1 year ago
I'm a bit confused on this one. I know Azure Policy can be used to manage extensions, but I'm not sure if that's the most "minimal administrative effort" approach. Let me think this through a bit more.
SH
Shelton
1 year ago
This question feels a bit tricky... I have a vague memory of something regarding how members need to be uniquely identifiable, but I can't recall the specifics.
LE
Leonor
1 year ago
Option C about specifying test techniques seems too specific. I don't think the V-Model goes into that level of detail, so I'll rule that one out.
MI
Micah
1 year ago
Okay, I've got this. Bilingual safety communication is clearly an outreach objective to ensure OSHA's message reaches a diverse workforce. I'm confident that's the right answer.
OM
Omega
1 year ago
Okay, I think I've got it. Target resolution times are used to set expectations with users, ensure customer satisfaction, and provide predictable responses to incidents. The options are getting at those different ways they are used.
AM
Amber
1 year ago
Demonstrating support from senior management is crucial. If the leadership is on board, that sends a strong signal to the rest of the organization.