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Governance, Risk, and ComplianceeasyMultiple ChoiceObjective-mapped

CAS-004 Governance, Risk, and Compliance Practice Question

A security analyst is calculating the annualized loss expectancy (ALE) for a server. The single loss expectancy (SLE) is $5,000 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

$1,000

ALE = SLE × ARO = $5,000 × 0.2 = $1,000.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • $0

    Why it's wrong here

    Incorrect; ARO is not zero.

  • $5,200

    Why it's wrong here

    Incorrect; that would be SLE + ARO (unrelated).

  • $1,000

    Why this is correct

    Correct: $5,000 × 0.2 = $1,000.

  • $25,000

    Why it's wrong here

    That would be SLE / ARO.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This CAS-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CAS-005 exam.