Which choice below is the BEST description of an Annualized Loss
Expectancy (ALE)?

A.
The expected risk factor of an annual threat event, derived by
multiplying the SLE by its ARO

B.
The percentile of the value of the asset expected to be lost, used to
calculate the SLE

C.
A value determined by multiplying the value of the asset by its
exposure factor

D.
An estimate of how often a given threat event may occur annually

Explanation:
Answer “An estimate of how often a given threat event may occur annually” describes the
Annualized Rate of Occurrence (ARO).
Answer “The percentile of the value of the asset expected to be lost, used to
calculate the SLE” describes the Exposure Factor (EF).
Answer “A value determined by multiplying the value of the asset by its
exposure factor” describes the algorithm to determine the Single Loss
Expectancy (SLE) of a threat.