You have scored the portfolio components and are analyzing the data in order to prioritize the components. Using the following scoring table, which…

This question requires selecting the optimal set of components that maximizes value (score) without exceeding the budget constraint of 40k USD. First, options A, B, and C must be eliminated as their total costs (52k, 55k, and 49k respectively) all exceed the 40k budget. Option D, consisting of components D, B, and E, has a total cost of 13k + 15k + 11k = 39k, which is within the budget. Therefore, it is the only feasible option presented. This selection process is a core activity within the "Optimize Portfolio" process, where components are chosen based on their value and alignment with constraints like available funding.

A. The total cost of components A, C, E, and B is 52k USD, which is over the 40k USD budget and is therefore not a valid selection.
B. The total cost of components D, B, C, and E is 55k USD, which is over the 40k USD budget and is therefore not a valid selection.
C. The total cost of components D, B, E, and A is 49k USD, which is over the 40k USD budget and is therefore not a valid selection.

1. Project Management Institute. (2018). The Standard for Portfolio Management – Fourth Edition. Newtown Square, PA: Project Management Institute. Section 6.3, "Optimize Portfolio," pp. 79-83.

2. Archer, N. P., & Ghasemzadeh, F. (1999). An integrated framework for project portfolio selection. International Journal of Project Management, 17(4), 207-216. (This paper discusses the use of scoring models and resource constraints, like budget, as fundamental to the portfolio selection process). https://doi.org/10.1016/S0263-7863(98)00032-5