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 calculate ALE.
Answer :Single loss expectancy (SLE) × Annualized rate of occurrence (ARO)
