Question

If you calculate the SLE to be $4,000 and that there will be 10 occurrences a year (ARO), then the ALE is:

A. $400
B. $4,000
C. $40,000
D. $400,000

Answer 1

The ALE (Annualized Loss Expectancy) would be $40,000.

Step-by-step explanation:

To calculate the ALE (Annualized Loss Expectancy), you multiply the SLE (Single Loss Expectancy) by the ARO (Annualized Rate of Occurrence). In this case, the SLE is $4,000 and the ARO is 10 occurrences per year. So, the ALE would be $4,000 x 10 = $40,000.

Therefore, the correct answer is C. $40,000.