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You have an asset that is valued at $16,000, the exposure factor of a risk affecting that asset is 35 percent, and the annualized rate of occurrence is 75 percent. What is the SLE?

Answer Options

A

$5,600

B

$5,000

C

$4,200

D

$3,000

Correct Answer: A

Explanation

The single loss expectancy (SLE) is the product of the asset value ($16,000) and the exposure factor (.35), or $5,600.

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