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?
⚠ Common exam trap
PK0-005 often tests the confusion between probability, impact, and EMV, where candidates might incorrectly multiply the impact by the probability percentage as a whole number (e.g., 20 × $50,000) or simply select the impact amount.
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
The Expected Monetary Value (EMV) is calculated by multiplying the probability of the risk by its potential financial impact. Here, the probability is 20% (0.20) and the impact is $50,000. Therefore, EMV = 0.20 × $50,000 = $10,000. This quantifies the risk in monetary terms for comparison and prioritization.
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
EMV multiplies probability by monetary impact: 0.20 × $50,000 = $10,000. This quantifies the risk's expected cost exposure, satisfying the calculation the stem requests and providing a comparable figure for prioritisation against other identified risks.
- ✗
$50,000
Why it's wrong here
$50,000 is the full impact if the risk occurs, not its probability-weighted value. EMV discounts that impact by the 20% likelihood, giving 0.20 × $50,000 = $10,000. The raw impact figure is used in EMV calculation, not reported as the EMV itself.
- ✗
$40,000
Why it's wrong here
EMV multiplies probability by impact: 0.20 × $50,000 = $10,000, not $40,000. This figure appears if the 20% probability is mistakenly applied as an 80% chance instead. The correct $10,000 represents the risk's probability-weighted average cost contribution to the project budget.
- ✗
$20,000
Why it's wrong here
EMV is probability multiplied by impact, giving 0.20 × $50,000 = $10,000. The $20,000 figure would result from treating the 20% as a direct dollar amount rather than a probability weighting. The correct $10,000 is the risk's expected cost contribution.
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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.