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PK0-005 Expected Monetary Value (EMV) Practice Question

Exhibit

Refer to the exhibit.
Risk Register Extract:
Risk ID: R01, Description: Supplier delay, Probability: 0.4, Impact: $50,000, Response: Mitigate by ordering early.
Risk ID: R02, Description: Resource turnover, Probability: 0.2, Impact: $100,000, Response: Accept.
Risk ID: R03, Description: Requirement change, Probability: 0.3, Impact: $80,000, Response: Transfer via contract.

Using the following risk data, which risk has the highest Expected Monetary Value (EMV)? Risk R01: Probability 30%, Impact $50,000 Risk R02: Probability 50%, Impact $20,000 Risk R03: Probability 80%, Impact $25,000

⚠ Common exam trap

Candidates may miscalculate EMV by confusing percentage values or multiplying incorrect pairs, or they may mistakenly think that the highest impact (R01) or highest probability (R03) alone determines the priority, rather than their product.

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

✓

R03

EMV is calculated as Probability × Impact. - R01: 0.30 × $50,000 = $15,000 - R02: 0.50 × $20,000 = $10,000 - R03: 0.80 × $25,000 = $20,000 R03 has the highest EMV at $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.

  • ✗

    R01

    Why it's wrong here

    R01 yields $15,000, below R03's $20,000, so it is not the highest. Multiplying probability by impact is tempting because R01 carries the largest single impact, but EMV ranks by the product, not by impact alone.

  • ✓

    R03

    Why this is correct

    R03 yields an EMV of $20,000 (0.80 × $25,000), exceeding R01's $15,000 and R02's $10,000. Multiplying each risk's probability by its monetary impact satisfies the stem's requirement to identify the highest expected monetary value, making R03 the greatest exposure.

  • ✗

    R02

    Why it's wrong here

    R02's EMV is $10,000, below R03's $20,000 and R01's $15,000, so it is not the highest. It tempts because its 50% probability sits mid-range, but EMV multiplies probability by impact, and R03's 80% of $25,000 yields the largest product.

  • ✗

    R01 and R02 tie

    Why it's wrong here

    R01's EMV is $15,000 and R02's is $10,000, so no tie exists; R03's $20,000 is highest. Ties are tempting when two figures look close, but EMV is a precise probability-times-impact product, and only equal products justify a tie.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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.