Susan wants to calculate the annualized loss expectancy for an asset that has a value of $50,000, an exposure factor of 50 percent, and an annual rate of occurrence of 2. What is the annualized loss expectancy for the asset?

Susan can calculate the single loss expectancy (SLE) by multiplying the asset value (AV) by the exposure factor (EF), resulting in $25,000. If this loss occurs twice a year, then the annualized loss expectancy (ALE) is $50,000.