CompTIA Security+ Exam Prep

Answer: A - Single loss expectancy estimates the loss of an asset if a threat were true. It is calculated by multiplying the asset value by the exposure factor. Once calculated, it is computed into the annual loss expectancy formula to determine how much money should be spent on protecting against the threat and preserving the asset. If a company decides to accept a risk, the decision should be based on cost and an acceptable level of pain.