Portfolio Management Professional (PfMP) — Question 33

Which tool or technique should the portfolio manager use to identify areas in which the portfolio may be underperforming in financially intangible ways?

Answer options

• A. Risk earned value management (EVM)
• B. Cost-benefit analysis
• C. Value measurement
• D. Scoring models

Correct answer: D

Explanation

The correct answer is D, Scoring models, as they help in evaluating and prioritizing projects based on various criteria, including non-financial factors. Options A and B focus more on financial metrics and cost evaluations, which do not directly address the identification of intangible performance issues. Option C, Value measurement, also tends to emphasize financial aspects rather than the broader scope of non-financial performance indicators.