PK0-005 Project Life Cycle Practice Question
During risk management, a team identifies a risk with a 20% probability of occurrence and a potential cost impact of $50,000. What is the Expected Monetary Value (EMV) of this risk?
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
EMV = Probability × Impact = 0.20 × $50,000 = $10,000. EMV is used to quantify risks in monetary terms.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
$10,000
Why this is correct
Correct calculation.
- ✗
$50,000
Why it's wrong here
This is the impact, not multiplied by probability.
- ✗
$40,000
Why it's wrong here
Incorrect calculation.
- ✗
$20,000
Why it's wrong here
This is the probability percentage, not EMV.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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