312-50V9 · Question #233
312-50V9 Question #233: Real Exam Question with Answer & Explanation
The correct answer is A: $146. The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE). Suppose than an asset is valued at $100,000, and the Exposure Factor (EF) for this asset is 25%. The single loss expectancy (SLE) then, is 25% $100,000
Question
Options
- A$146
- B$1320
- C$440
- D$100
Explanation
The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE). Suppose than an asset is valued at $100,000, and the Exposure Factor (EF) for this asset is 25%. The single loss expectancy (SLE) then, is 25% * $100,000, or $25,000. In our example the ARO is 33%, and the SLE is 300+1410 (as EF=1). The ALO is thus: 33%(300+14*10) which equals 146. https://en.wikipedia.org/wiki/Annualized_loss_expectancy
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