CompTIA
SY0-301 · Question #853
SY0-301 Question #853: Real Exam Question with Answer & Explanation
The correct answer is B: Multiplying the annualized rate of return and the single loss expectancy.. Annual Loss Expectancy (ALE) is calculated by multiplying the Annualized Rate of Occurrence (ARO) by the Single Loss Expectancy (SLE).
Question
The annual loss expectancy can be calculated by:
Options
- ADividing the annualized rate of return by single loss expectancy.
- BMultiplying the annualized rate of return and the single loss expectancy.
- CSubtracting the single loss expectancy from the annualized rate of return.
- DAdding the single loss expectancy and the annualized rate of return.
Explanation
Annual Loss Expectancy (ALE) is calculated by multiplying the Annualized Rate of Occurrence (ARO) by the Single Loss Expectancy (SLE).
Common mistakes.
- A. Dividing ARO by SLE produces no recognized risk metric and yields a dimensionally inconsistent result combining frequency and currency units.
- C. Subtracting SLE from ARO is mathematically invalid for risk calculation as it subtracts a monetary value from a frequency rate.
- D. Adding SLE and ARO produces no meaningful risk value because the two quantities use incompatible units and no standard risk framework uses this formula.
Concept tested. ALE risk quantification formula (ARO x SLE)
Reference. https://csrc.nist.gov/publications/detail/sp/800-30/rev-1/final
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