Calculate the ALE based on the following information:
The SLE is 4 million dollars.
The ARO is 5%.
What is the ALE?
A)4.5 million dollars
B)2 million dollars
C)200,000 dollars
D)4,200,000 dollars

Question

Quizplus · Accepted Answer

The Annual Loss Expectancy (ALE) is calculated by multiplying the Single Loss Expectancy (SLE) by the Annual Rate of Occurrence (ARO). Thus, ALE = SLE * ARO = 4,000,000 * 0.05 = 200,000 dollars.

Calculate the ALE Based on the Following Information