CAS-004 Governance, Risk, and Compliance Practice Question
A security analyst calculates the annualized loss expectancy (ALE) for a server. The single loss expectancy (SLE) is $50,000, and the annualized rate of occurrence (ARO) is 0.2. What is the ALE?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
$10,000
ALE = SLE × ARO = $50,000 × 0.2 = $10,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$50,200
Why it's wrong here
This incorrectly adds ARO to SLE.
- ✗
$2,500
Why it's wrong here
This multiplies SLE by ARO divided by 10 incorrectly.
- ✓
$10,000
Why this is correct
Correct calculation: $50,000 × 0.2 = $10,000.
- ✗
$250,000
Why it's wrong here
This would result from dividing SLE by ARO.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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