CAS-004 Governance, Risk, and Compliance Practice Question
A security analyst is performing a quantitative risk assessment for a server that processes payment card data. The server has an asset value of $50,000. Based on historical data, the exposure factor (EF) for a ransomware attack is 80%, and the annualized rate of occurrence (ARO) is 0.5. What is the annualized loss expectancy (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
✓
$20,000
ALE = SLE × ARO, where SLE = AV × EF = $50,000 × 0.8 = $40,000, and ARO = 0.5, so ALE = $40,000 × 0.5 = $20,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
$20,000
Why this is correct
Correct calculation: SLE = AV × EF = $40,000, ALE = $40,000 × 0.5 = $20,000.
- ✗
$40,000
Why it's wrong here
This is the SLE, not the ALE.
- ✗
$50,000
Why it's wrong here
This is the asset value, not the ALE.
- ✗
$25,000
Why it's wrong here
Incorrect calculation; possibly AV × ARO = $50,000 × 0.5 = $25,000, but EF must be applied.
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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.