An asset with a value of $600,000 is subject to a successful malicious attack threat twice a year. The asset has an exposure of 30 percent to the…

The annualized loss expectancy will be $360,000.

Annualized loss expectancy (ALE) is the annually expected financial loss to an organization from a

threat. The annualized loss expectancy

(ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE). It is

mathematically expressed as follows:

ALE = Single Loss Expectancy (SLE) * Annualized Rate of Occurrence (ARO)

Here, it is as follows:

SLE = Asset value * EF (Exposure factor)

= 600,000 * (30/100)

= 600,000 * 0.30

= 180,000

ALE = SLE * ARO

= 180,000 * 2

= 360,000

Answer C, B, and D are incorrect. These are not valid answers.