Which of the following would BEST be used to calculate the expected loss of an event, if the
likelihood of an event occurring is known? (Select TWO).

A.
DAC

B.
ALE

C.
SLE

D.
ARO

E.
ROI

Explanation:
ALE (Annual Loss Expectancy) is equal to the SLE (Single Loss Expectancy) times the annualized
rate of occurrence. SLE (Single Loss Expectancy) is equal to asset value (AV) times exposure
factor (EF).