Which of the following represents an ALE calculation?

A.
Singe loss expectancy x annualized rate of occurrence.

B.
Gross loss expectancy x loss frequency.

C.
Actual replacement cost – proceeds of salvage.

D.
Asset value x loss expectancy.

Explanation:
ALE (Annualized Loss Expectancy) calculations are a component of every risk analysis process. ALE
calculations when done properly portray risk accurately. ALE calculations provide meaningful
cost/benefit analysis. ALE calculations are used to: SLE x ARO = ALE