Single Loss Expectancy (SLE) represents an organization's loss from a single threat. Which of the following formulas best describes the Single Loss Expectancy (SLE)?

The formula SLE = Asset Value (AV) * Exposure Factor (EF) accurately calculates the potential financial loss from a single security incident. Asset Value represents the monetary worth of the asset, while Exposure Factor is the percentage of loss that would occur to the asset if a specific threat materializes.

This formula incorrectly combines ALE and ARO; ALE (Annualized Loss Expectancy) itself is derived from SLE and ARO.

This formula incorrectly combines ALE and EF; ALE is a measure of annual loss, not a factor in single event loss calculation.

This formula incorrectly combines Asset Value with ARO; ARO (Annualized Rate of Occurrence) measures how often a threat is expected to occur annually, not the loss from a single event.