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Single loss expectancy (SLE) is calculated by using:
Asset value and annualized rate of occurrence (ARO)
Asset value and exposure factor
Local annual frequency estimate and annualized rate of occurrence
Asset value, local annual frequency estimate (LAFE), and standard annual frequency estimate (SAFE)
ALE = SLE x ARO so knowing ALE and ARO permits to calculate SLE. This question asks about SLE but, then mixes in the ALE process. Musat read this one carefully....The annualized loss expectancy (ALE) is computed as the product of the asset value (AV) times the exposure factor (EF) times the annualized rate of occurrence (ARO). This is the longer form of the formula ALE = SLE x ARO. The other formulas displayed here do not accurately reflect this calculation to get to the SLE.
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