Final answer:
The Exposure Factor is the term for the percentage of loss an asset would incur if a certain threat becomes a reality. It is used in risk assessments to quantify possible losses and is expressed as a percentage of the asset's total value.
Step-by-step explanation:
The term for the percentage of loss an asset's value would experience if a threat becomes realized is known as the Exposure Factor (D). The Exposure Factor is used in risk management and information security to quantify the potential loss to an asset from a particular threat. It is usually expressed as a percentage, representing the part of the asset's value that would be lost. For instance, if an asset is valued at $100,000 and the Exposure Factor is 20%, this means that in the event of a threat materializing, $20,000 worth of value from that asset would be compromised.
The expected rate of return is different as it refers to the average return over a period of time that an investment is expected to generate, expressed as a percentage. Risk is associated with the uncertainty of returns and varies depending on the type of risk, like default risk or interest rate risk. Lastly, the actual rate of return represents total earnings on an investment at the end of a period, including both capital gains and interest.