PK0-005 Project Life Cycle Practice Question
A project manager identifies a risk with a probability of 30% and an impact of $50,000. What is the expected monetary value (EMV) of this risk?
⚠ Common exam trap
The trap is misreading the probability as a whole number or confusing EMV with total impact; candidates must remember EMV = probability (as decimal) × impact, not impact alone.
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
✓
$15,000
Expected monetary value (EMV) is calculated by multiplying the probability of the risk by its monetary impact: 0.30 × $50,000 = $15,000. This value represents the weighted average outcome and is used in quantitative risk analysis to prioritize risks and justify contingency reserves.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$150,000
Why it's wrong here
Multiplying probability by impact gives $15,000, not $150,000; this figure results from treating the 30% as a multiplier of the impact in the wrong direction, or misplacing the decimal. It tempts candidates who confuse EMV with total exposure across multiple risk events, where summing several impacts could reach this magnitude.
- ✗
$35,000
Why it's wrong here
EMV multiplies probability by impact: 0.30 × $50,000 = $15,000, so $35,000 matches no calculation here. It tempts because subtracting $15,000 from $50,000 resembles a net-exposure figure, but EMV is a standalone expected value, not a residual.
- ✗
$50,000
Why it's wrong here
$50,000 is the raw impact, ignoring the 30% probability entirely; EMV requires multiplying the two. It tempts because impact is the headline figure in a risk register, and quoting it feels like quantifying exposure, but EMV deliberately discounts impact by likelihood.
- ✓
$15,000
Why this is correct
Expected monetary value multiplies probability by impact: 0.30 × $50,000 = $15,000. This quantifies the risk's average financial exposure, letting the project manager weigh it against contingency reserves or response costs during quantitative risk analysis.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official CompTIA exam blueprint
This PK0-005 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 PK0-005 exam.