Which of the following is the proper formula used to calcula

Which of the following is the proper formula used to calculate ALE?

A. Single loss expectancy (SLE) × Annualized rate of occurrence (ARO)

B. Asset value × Annualized rate of occurrence (ARO)

C. Single loss expectancy (SLE) × Annualized rate of occurrence (ARO)

D. Asset value / Annualized rate of occurrence (ARO)

Solution

C. Single loss expectancy (SLE) × Annualized rate of occurrence (ARO) is the formula used to determine ALE. Answers A, B, and D are incorrect because they are not the formulas used to calculate ALE