CompTIA Security+ Question J-79

Peter, the system administrator, has been asked to calculate the Annual Loss Expectancy (ALE) for a $5,000 server, which often crashes. In the past year, the server has crashed 10 times, requiring a system reboot to recover with only 10% loss of data or function. Which of the following is the ALE of this server?

A. $500
B. $5,000
C. $25,000
D. $50,000

Answer: B

SLE × ARO = ALE, where SLE is equal to asset value (AV) times exposure factor (EF); and ARO is the annualized rate of occurrence. (5000 x 10) x 0.1 = 5000