Annualized Loss Expectancy (ALE) value is derived from an algorithm of the product of annual rate of
occurrence and

A.
Cost of all losses expected.

B.
Previous year’s actual loss.

C.
Average of previous losses.

D.
Single loss expectancy.

Explanation:
Single Loss Expectancy (SLE) x Annualized Rate of Occurance (ARO) = ALE pg. 18 Krutz: The CISSP
Prep Guide