Ace the 2026 PMD Pro Level 1 – Your Ultimate Development Project Management Challenge!

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Which of the following statements about portfolio management and resources is true?

It assigns resources to individual tasks only

It balances opportunities and risks against demand and supply for resources

It ignores strategic objectives

It focuses only on risk management

Portfolio management and resources is about allocating limited resources across a set of programs and projects to maximize value while weighing both upside opportunities and potential risks against what is demanded and what is actually available. The best statement captures this balance: opportunities and risks should be weighed against the demand for resources and the available supply. This framing recognizes that decisions are constrained by capacity, so you prioritize initiatives not just by risk, but by the expected value within resource limits, all in alignment with strategic goals. The other options miss key aspects: resources aren’t allocated only to individual tasks but across programs and portfolios; strategic objectives aren’t ignored; and portfolio management isn’t limited to risk management—it involves balancing opportunities, risks, and resource constraints together.