PMI Portfolio Management Professional (PfMP) PfMP Question # 85 Topic 9 Discussion

PMI Portfolio Management Professional (PfMP) PfMP Question # 85 Topic 9 Discussion

PfMP Exam Topic 9 Question 85 Discussion:
Question #: 85
Topic #: 9

When it comes to managing the portfolio value, one of the junior portfolio managers came to you asking about the relation between cost-benefit analysis and the efficient frontier analysis. What should your answer to her be?


A.

The Efficient frontier analysis is used while performing the Cost-benefit analysis in order to get the confidence factor in the estimates


B.

Efficient frontiers are not static, and organizations should monitor cost-benefit ratios on a continual basis


C.

Efficient frontier tracks the realized value against planned costs; thus is another way of cost-benefit analysis


D.

Cost-Benefit analysis are not static, and organizations should monitor the efficient frontier ratios on a continual basis


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