Description : Consider these two investment strategies: Strategy is the dominant strategy because . A. 1, it is riskless B. 1, it has the highest reward/risk ratio C. 2, its return is at least equal ... sometimes greater D. 2, it has the highest reward/risk ratio E. both strategies are equally preferred
Last Answer : C. 2, its return is at least equal to Strategy 1 and sometimes greater
Description : Several upgradation tasks done in the same area by the same company might best be managed as part of a/an (A) portfolio (B) program (C) investment (D) collaboration
Last Answer : (B) program
Description : The tracking error of an optimized portfolio can be expressed in terms of the of the portfolio and thus reveal . A. return; portfolio performance B. total risk; portfolio performance C. beta; portfolio performance D. beta; benchmark risk E. relative return; benchmark risk
Last Answer : D. beta; benchmark risk
Description : Which of the following types of company will have the lowest level of investment in working capital to finance? A. Water suppliers B. Supermarkets C. Chemical manufacturers D. Ship builders E. Car
Last Answer : B. Supermarkets
Description : What is the most critical aspect in developing a project plan that meets project specifications within the timeframe and at the lowest costs? Select one: a. Assessing risk management b ... business partners e. Developing a project execution plan that matches the complexity level of the project
Last Answer : e. Developing a project execution plan that matches the complexity level of the project
Description : An Expected Monetary Value (EMV) of $100000 on a potential project event in the project means which of the following? Select one: a. A number that can be ignored b. An opportunity that ... Actual investment returns on the event e. A threat that must be considered to minimize the project risk
Last Answer : b. An opportunity that must be explored
Description : Which of the following is least likely to be part of the calculation of the terminal- year incremental net cash flow for an energy-related expansion project? A. An initial working capital ... Disposal/reclamation costs C. Capitalized expenditures D. Salvage value of any sold or disposed assets
Last Answer : D. Salvage value of any sold or disposed assets
Description : To assist in budget control, it is suggested that the estimate occur at the _____ ____ ______ level of the WBS 1. Highest 2. Lowest 3. Major work effort 4. Third
Last Answer : 2. Lowest
Description : The two types of investments that provide the highest and lowest yields in the Ibbotson study of Stocks, Bonds, Bills and Inflation are A. Large company stocks; U.S. treasury bills B. Large ... Treasury bills D. Small company stocks; preferred stock E. U.S. treasury bills; small company stocks
Last Answer : C. Small company stocks; U.S. Treasury bills
Description : A portfolio can best be defined as: a. a group of projects and programs carried out within an organization. b. a group of programs carried out under the sponsorship of an organization. c ... the sponsorship of an organization. d. a range of products and services offered by an organization.
Last Answer : a. a group of projects and programs carried out within an organization.
Description : . A portfolio can best be defined as: a. a group of projects and programmes carried out within an organisation. b. a group of programmes carried out under the sponsorship of an organisation ... the sponsorship of an organisation. d. a range of products and services offered by an organisation.
Last Answer : a. a group of projects and programmes carried out within an organisation.
Description : In the project management theory, balancing scope, schedule, and cost goals is often termed as (A) triangular dilemma (B) triple constraint (C) fundamental trade-off (D) project portfolio management
Last Answer : (B) triple constraint
Description : Portfolio Management focuses on _____ goals. (A) targeted (B) long-term (C) tangible (D) intangible
Last Answer : (B) long-term
Description : Which from the following statement(s) is/are NOT true? I. Projects have defined objectives II. Programs have a larger scope than projects III. The projects and programs in a portfolio must be directly related (A) I only (B) II only (C) III only (D) II and III only
Last Answer : (C) III only
Description : A mean for monitoring and controlling organization's strategic projects is A. Project Monitoring process B. Project Portfolio Process C. Project Portfolio Plan D. Project Portfolio Phase
Last Answer : B. Project Portfolio Process
Description : A portfolio comprises of two stocks A and B. Stock A gives a return of 8%and stock B gives a return of 7%. Stock A has a weight of 60% in the portfolio. What is the portfolio return? A. 9% B. 11% C. 10% D. 8%
Last Answer : D. 8%
Description : All of the following statements are true regarding risk events except which one? Choose the least correct answer. A. Project risks are uncertain events. B. If risks occur, they can ... that have more perceived rewards to the organization than the consequences of the risk should be accepted.
Last Answer : C. Unknown risks are threats to the project objectives, and nothing can be done to plan for them.
Description : On a project the project manager should strive for a "Quality Level" that : 1. is the highest level possible 2. is as close to the project objectives as possible 3. represents the least cost to the project. 4. Exceeds the specified requirements of the project.
Last Answer : 2. is as close to the project objectives as possible
Description : Fill in the blank. The _____ is the difference between the additional money spent on prevention and the corresponding reduction in the cost of failure. Select one: a. cost-benefit analysis b. implicit cost c. cost of quality d. variable cost e. cost-utility analysis
Last Answer : c. cost of quality
Description : Which from the following is NOT an intangible element? (A) Utility (B) Public benefit (C) Brand recognition (D) Good will
Last Answer : (A) Utility
Description : What type of pricing objective might an organisation set if it was already in a favourable financial position and desired nothing more? A)Return on investment B)Cash flow C)Profit D)Status quo E)Survival
Last Answer : D)Status quo
Description : When a project manager starts to plan a new project budget, the cost of which project management process group is expected to be lowest? Select one: a. Initiating b. Executing c. Monitoring and controlling d. Closing e. Planning
Last Answer : d. Closing
Description : When is the project's amount at stake the lowest 1. conceptual 2. design 3. close-out 4. implementation
Last Answer : 1. conceptual
Description : What is a diverse investment portfolio?
Last Answer : An investment portfolio can only be considered "diverse" if it consists of multiple different types of investments. When thinking of investments, the most common types that come to mind are stocks, bonds, ... putting money in a savings account, it's important to keep a small amount invested in cash.
Description : Which type of foreign investment is considered as unsafe? (1) Foreign Direct Investment (FDI) (2) Portfolio Investment (3) NRI deposits (4) External commercial borrowing
Last Answer : (2) Portfolio Investment Explanation: Portfolio Investments are considered unsafe. These are investments in the form of a group (portfolio) of assets, including transactions in equity securities, such as ... which allows an investor to exercise a certain degree of managerial control over a company.
Last Answer : Portfolio Investment
Description : The justification for the investment to be made in a project is documented in the: a. Cost Breakdown Structure. b. procurement strategy. c. business case. d. Project Management Plan.
Last Answer : c. business case.
Description : The purpose of the analysis is to examine the desirability of investing in pre-investment studies. (True/False)
Last Answer : Ans. True
Description : ___ should be made of all cost factors so as to reflect on all relevant investment and operational costs of the project including contingencies.
Last Answer : Ans. Realistic estimates
Description : Net Present Value of a machine is A. PV of cash inflows less cost of investment B. PV of cash inflows ÷ cost of investment C. PV of net profit after tax less cost of investment D.PV of cash inflows less average cost of investment
Last Answer : A. PV of cash inflows less cost of investment
Description : Project Manager must ensure that it develops appropriate trade off/s as A. Time, cost and performance B. Time, value and performance C.Men, Materials and Machines D.Money, Cost and Return on Investment
Last Answer : A. Time, cost and performance
Description : The justification for the investment to be made in a project is documented in the: a. Cost Breakdown Structure. b. procurement strategy. c. business case. d. Project Management Plan
Description : Cost budgeting can be best described by which of the following? 1. The process of developing the future trends along with the assessment of probabilities, uncertainties, and inflation that could ... of gathering, accumulating, analyzing, reporting, and managing the costs on an on- going basis
Last Answer : 3. The process of establishing budgets, standards, and a monitoring system by which the investment cost of the project can be measured and managed
Description : Suppose an investment of $100 has grown to $110 in one year. What is the return on investment? (A) 0.1% (B) 1.0% (C) 10% (D) none of these
Last Answer : (C) 10%
Description : An investment should be accepted if its Net Present Value (NPV) is (A) 0 (B) 1 (C) positive (D) negative
Last Answer : C) positive
Description : The return available by investing the capital elsewhere is known as (A) profit rate (B) discount rate (C) opportunity cost (D) return on investment
Last Answer : (C) opportunity cost
Description : MM Model of Dividend irrelevance uses arbitrage between : A. Dividend and Bonus B. Dividend and Capital Issue C. Profit and Investment D. None of the
Last Answer : B. Dividend and Capital Issue
Description : Assume that a firm has accurately calculated the net cash flows relating to two mutua lly exclusive investment proposals. If the net present value of both proposals exceed zero and the firm is ... maximize shareholder wealth and, since the projects are mutually exclusive, we can only take one
Last Answer : D. accept the proposal that has the largest NPV since the goal of the firm is to maximize shareholder wealth and, since the projects are mutually exclusive, we can only take one
Description : Capital budgeting is a part of: A. Investment decision B. Working capital management C. Marketing management D. Capital structure
Last Answer : A. Investment decision
Description : Inferior investment alternatives are identified when: A. α < 0. B. β = 0. C. β > 1. D. β < 1.
Last Answer : A. α < 0.
Description : Modern portfolio theory …….. the relationship between risk and return a. maximizes b. minimizes c. quantifies d. does not assume
Last Answer : Answer: c
Description : This type of risk is avoidable through proper diversification A. Portfolio risk B. Systematic risk C. Unsystematic risk D. Total risk
Last Answer : c
Description : The object of portfolio is to reduce ……by diversification A . Return B. Risk C. Uncertainty D. Percentage
Last Answer : Answer: B
Description : The main aim of a project risk management process should be to: a. identify project risks and then manage them appropriately. b. identify all project risks and transfer them immediately. c ... are threats or opportunities on a project. d. satisfy the organization's project management process.
Last Answer : a. identify project risks and then manage them appropriately.
Description : Who has ultimate responsibility for project risk? a. Steering group. b. Risk owner. c. Project sponsor. d. Project manager.
Last Answer : c. Project sponsor.
Description : The main purpose of the Project Management Plan is to: a. provide justification for undertaking the project in terms of evaluating the benefit, cost and risk of alternative options. b. ensure ... the project. d. document the outcome of the risk, change and configuration management processes.
Last Answer : c. document the outcomes of the planning process and provide the reference document for managing the project.
Description : A Responsibility Assignment Matrix (RAM) can be used to: a. define the terms of reference of the project manager. b. define the limits of the project sponsor's responsibilities. c ... response activities to project personnel. d. allocate work packages to those responsible for project work.
Last Answer : d. allocate work packages to those responsible for project work.
Description : Which one of the following statements about the project risk register is false? a. It facilitates the review and monitoring of risks. b. It facilitates the risk appetite. c. It facilitates the recording of risk responses. d. It facilitates the recording of risks.
Last Answer : b. It facilitates the risk appetite.
Description : The main outcome of risk identification, in a risk management process, is to: a. identify and determine the relative importance of the project risks. b. identify and describe all risks that ... responses to the project risks. d. identify and describe risks that have occurred on previous projects.
Last Answer : b. identify and describe all risks that might occur on the project.
Description : Project risk management is best described as: a. managing responses to threats. b. identifying and acknowledging threats and opportunities. c. planning responses to threats. d. minimising threats and maximising opportunities.
Last Answer : d. minimising threats and maximising opportunities.