shieldCISSP Practice Domain 1 — Security and Risk Management Q48 of 120

An asset is valued at $200,000 with EF=0.25 and ARO=2. What is the ALE?

A CISSP practice question covering Domain 1: Security and Risk Management. Try answering before reading the explanation below.

Show options & answer
A
$50,000
B
$100,000
✓ Correct answer
C
$200,000
D
$400,000
Why "$100,000" is the right answer

SLE = 200,000 × 0.25 = $50,000. ALE = SLE × ARO = $50,000 × 2 = $100,000. The ALE is the headline figure used to compare risks quantitatively.

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