312-50V9 Question #353: Real Exam Question with Answer & Explanation

The correct answer is A: $62.5. The correct answer is A. $62.50. ALE (Annualized Loss Expectancy) is calculated as: ALE = SLE × ARO. First, calculate SLE (Single Loss Expectancy): SLE = Asset Value × EF = $500 × 0.5 = $250. Next, calculate ARO (Annual Rate of Occurrence): the drive fails once every 4 years, so

Question

The chance of a hard drive failure is known to be once every four years. The cost of a new hard drive is $500. EF (Exposure Factor) is about 0.5. Calculate for the Annualized Loss Expectancy (ALE).

Options

A$62.5
B$250
C$125
D$65.2

Explanation

The correct answer is A. $62.50. ALE (Annualized Loss Expectancy) is calculated as: ALE = SLE × ARO. First, calculate SLE (Single Loss Expectancy): SLE = Asset Value × EF = $500 × 0.5 = $250. Next, calculate ARO (Annual Rate of Occurrence): the drive fails once every 4 years, so ARO = 1/4 = 0.25. Finally: ALE = $250 × 0.25 = $62.50. This formula is a core part of quantitative risk analysis in security certifications (CEH, CISSP, Security+).

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