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

AOptimize Portfolio

BManage Supply & Demand

CManage Portfolio value

DManage Portfolio Information

Show Suggested Answer

Suggested Answer: D

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

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Gary

1 months 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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Gracie

1 days ago

User 2: Really? I had no idea. Which process is it mostly used in?

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Martina

17 days ago

User 1: Yes, the efficient frontier is used in portfolio management to optimize portfolios.

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Mammie

2 months 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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Wayne

16 days ago

B) Manage Supply & Demand

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Rachael

22 days ago

I agree, the efficient frontier is definitely used in optimizing the portfolio.

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Solange

28 days ago

A) Optimize Portfolio

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Mose

2 months 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

2 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

1 months 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

2 months ago

User 1: I think the efficient frontier is mostly used in optimizing the portfolio.

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Sommer

2 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

2 months ago

I agree with Willard. The efficient frontier helps in maximizing returns for a given level of risk.

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Willard

2 months ago

I think the efficient frontier is mostly used in optimizing portfolios.

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Hollis

2 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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