Certified Ethical Hacker (CEH) — Question 59

The chance of a hard drive failure is known to be once every four years. The cost of a new hard drive is $500. EF (Exposure Factor) is about 0.5. Calculate for the
Annualized Loss Expectancy (ALE).

Answer options

• A. $62.5
• B. $250
• C. $125
• D. $65.2

Correct answer: A

Explanation

The Annualized Loss Expectancy (ALE) is calculated using the formula ALE = SLE x ARO, where SLE (Single Loss Expectancy) is the cost of the hard drive multiplied by the EF. Here, SLE is $500 x 0.5 = $250, and ARO (Annual Rate of Occurrence) is 1/4 = 0.25, leading to an ALE of $250 x 0.25 = $62.5. The other options do not correctly reflect the calculations based on the provided values.