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CAS-003 · Question #75

CAS-003 Question #75: Real Exam Question with Answer & Explanation

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Question

The risk manager at a small bank wants to use quantitative analysis to determine the ALE of running a business system at a location which is subject to fires during the year. A risk analyst reports to the risk manager that the asset value of the business system is $120,000 and, based on industry data, the exposure factor to fires is only 20% due to the fire suppression system installed at the site. Fires occur in the area on average every four years. Which of the following is the ALE?

Options

  • A$6,000
  • B$24,000
  • C$30,000
  • D$96,000

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