1. Project portfolio management helps make project termination decisions more objective and less political or emotional.

1. True
2. False

2. The Efficient Frontier was introduced in the early 1950s by _______:

1. Deming
2. Markowitz
3. Kodukula
4. Merkhofer

3. A Project should generate a return that is at least equivalent to the _____ because this is what it costs you to fund the project.

1. Net Present Value (NPV)
2. Initial Investment
3. Return on Investment (ROI)
4. Weighted Average Cost of Capital (WACC)

4. Which of these is not one of the three principles of financial portfolio management theory developed by Harry Markowitz in the early 1950s?

1. The portfolio should be constructed in accordance with the overall investment strategy and goals.
2. The portfolio has 2 sources of risks: individual risk related to a given portfolio asset, and relationship risk of how an asset is related to others.
3. The portfolio should incorporate both tangible and intangible values.
4. These risks are minimized by diversification through avoiding overdependence on one asset or one asset category.

5. _______ reflects the difference between the projected earnings and the investment cost associated with the projects products or services.

1. Earned Value
2. Net Income
3. Net Present Value
4. Net Profit