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PMI Exam PfMP Topic 8 Question 80 Discussion

Actual exam question for PMI's PfMP exam
Question #: 80
Topic #: 8
[All PfMP Questions]

Portfolio managers tend to use the efficient frontier analysis as a modeling approach that gives decision makers the analytical tool to optimize portfolios given resource constraints such as risk. In which of the Portfolio management processes the efficient frontier is mostly used

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Suggested Answer: D

by Lilli at Dec 08, 2024, 07:48 PM

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Gary
9 days ago
Wait, there's an 'efficient frontier' in portfolio management? I thought that was just a term used in physics. Guess I need to brush up on my finance knowledge.
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Mammie
20 days ago
I'm with Mose on this one. The efficient frontier is all about optimizing the portfolio, not just managing the information or the overall value. Easy choice here.
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Solange
1 days ago
A) Optimize Portfolio
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Mose
21 days ago
Ha! Good thing I read the question carefully. The answer is clearly A) Optimize Portfolio. Can't believe anyone would think it's used for managing supply and demand.
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Lynette
1 months ago
I'm not so sure about that. Managing supply and demand could also involve using the efficient frontier to ensure the portfolio is meeting the required resource constraints.
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Sherman
13 days ago
User 2: Managing supply and demand could also involve using the efficient frontier to ensure the portfolio meets resource constraints.
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Abel
20 days ago
User 1: I think the efficient frontier is mostly used in optimizing the portfolio.
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Sommer
1 months ago
I believe it's option A) Optimize Portfolio because the efficient frontier helps in finding the best possible combination of assets to achieve the highest return for a given level of risk.
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Carlota
1 months ago
I agree with Willard. The efficient frontier helps in maximizing returns for a given level of risk.
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Willard
1 months ago
I think the efficient frontier is mostly used in optimizing portfolios.
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Hollis
1 months ago
The efficient frontier analysis is definitely used in the Optimize Portfolio process. This is a key tool for portfolio managers to find the optimal balance between risk and return.
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Shaniqua
C) Manage Portfolio value
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Blossom
8 days ago
No, the efficient frontier analysis is not used in managing supply and demand.
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Lisha
11 days ago
B) Manage Supply & Demand
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Derrick
16 days ago
Yes, the efficient frontier analysis is crucial for finding the optimal balance between risk and return.
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Ceola
24 days ago
A) Optimize Portfolio
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