Practice CISSP Exam Question #019

What is the formula used to compute the ALE?

  • ALE = AV * EF * ARO
  • ALE = ARO * EF
  • ALE = AV * ARO
  • ALE = EF * ARO

Answer: [ALE = AV * EF * ARO] The annualized loss expectancy (ALE) is computed as the product of the asset value (AV) times the exposure factor (EF) times the annualized rate of occurrence (ARO). This is the longer form of the formula ALE = SLE * ARO. The other formulas displayed here do not accurately reflect this calculation.


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