PMI PfMP Exam - Topic 6 Question 62 Discussion

Actual exam question for PMI's PfMP exam

Question #: 62
Topic #: 6

Review the following graphic. Assume now your portfolio is only 12% likely to meet is target of $41,000. Your Portfolio Review Board is dissatisfied in your management of the value of the overall portfolio. You explain the current mix of components is too risk adverse, and additional investment is required. The Board Chair then wants the needed investment to have a 75% likelihood, and you state it is:

A$100,000

B$50,000

C$125,000

D$65,000

Show Suggested Answer

Suggested Answer: A

by Coletta at May 02, 2024, 10:58 AM

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Sherita

8 months ago

Totally agree with the $100,000 option!

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Vilma

8 months ago

Wait, how do we know this investment will actually improve our odds?

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Ernest

8 months ago

$125,000 seems excessive for just a 75% likelihood!

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Annette

9 months ago

I think $50,000 could work too, but it’s risky.

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Celestina

9 months ago

Looks like $100,000 is the safest bet for a 75% chance.

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Jerrod

9 months ago

I vaguely recall that increasing the investment amount should correlate with the desired likelihood of reaching the target. I feel like $100,000 could be a safe bet, but I’m not completely confident.

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Dan

9 months ago

I’m a bit confused about how to determine the exact amount needed for a 75% likelihood. I thought it was more about adjusting the risk profile rather than just picking a number.

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Solange

9 months ago

This question feels similar to the practice problems we did on portfolio management. I think I might lean towards option C, but I need to double-check my calculations.

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Howard

10 months ago

I remember we discussed how to calculate the required investment based on risk levels, but I'm not entirely sure how to apply it here.

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Ernest

10 months ago

Alright, I think I've got a handle on this. Time to crunch the numbers and determine the correct investment amount to recommend to the Board.

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Noelia

10 months ago

I'm a bit confused by the graphics and the wording of the question. I'll need to re-read it carefully and make sure I understand all the details before attempting to answer.

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Charlesetta

10 months ago

This seems straightforward enough. I just need to find the investment amount that would give a 75% likelihood of meeting the $41,000 target based on the information provided.

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Ozell

10 months ago

Okay, let me think this through step-by-step. The portfolio is currently 12% likely to meet its $41,000 target, and the Board wants a 75% likelihood. I'll need to calculate the investment required to reach that 75% target.

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Tiffiny

10 months ago

Hmm, this looks like a tricky one. I'll need to carefully analyze the information provided in the graphic and question to determine the right investment amount.

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Melvin

10 months ago

Okay, I've got this. The Standard Edition Security Expert Service is all about host and website security, so I'm going to select A and B.

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Kelvin

10 months ago

I'm pretty confident the key here is recognizing that body language alone isn't definitive proof of lying. Gotta go with False on this one.

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Chaya

10 months ago

Hmm, I'm not sure about this one. The graph doesn't give a lot of context, so it's hard for me to determine what type of process it's representing. I'll have to think it through carefully.

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