For questions 5 and 6, assume the following: The asset value of a small distribution warehouse is $5 million, and this warehouse serves as a backup facility. Its complete destruction by a disaster would take away about 1/5 of the capability of the business. Also assume that this sort of disaster is expected to occur about once every 50 years.
Which of the following is the calculated single loss expectancy (SLE)? SLE = asset value × exposure factor
A. SLE = $25 million
B. SLE = $1 million
C. SLE = $2.5 million
D. SLE = $5 million
Answers: 2
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For questions 5 and 6, assume the following: The asset value of a small distribution warehouse is $5...
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