You are calculating the Annualized Loss Expectancy (ALE) using the following formula: ALE=AV * EF *
ARO What information does the AV (Asset Value) convey?

A.
It represents how many times per year a specific threat occurs.

B.
It represents the percentage of loss that an asset experiences if an anticipated threat occurs.

C.
It is expected loss for an asset due to a risk over a one year period.

D.
It represents the total cost of an asset, including the purchase price, recurring maintenance,
expenses, and all other costs.

Explanation:
AV (Asset Value) is a factor that represents the total cost of an asset, including the
purchase price, recurring maintenance, expenses, and all
other costs associated with acquiring an asset.
Answer option B is incorrect. EF (Exposure Factor) is a factor that represents the percentage of loss
that an asset experiences if an
anticipated threat occurs.
Answer option A is incorrect. ARO (Annualized Rate of Occurrence) is a factor that represents how
many times per year a specific threat occurs.
Answer option C is incorrect. Annualized Loss Expectancy (ALE) is a monetary value that is expected
for an asset due to a risk over a one year
period.