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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Lynette

12 days 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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Sommer

13 days 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

14 days ago

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

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Willard

15 days ago

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

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Hollis

15 days 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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