Reference no: EM133257677

Question 1: A vendor is offering a tool to protect against an attack on an information set that has cost $5,000,000. The most that could be lost from the attack on the information set is $900,000. According to the Gordon Loeb rule, what is the maximum amount that should be spent?

Question 2: Vincent van Diesel, CEO of WWEnergyBars, is trying to determine whether or not it is worthwhile purchasing earthquake insurance. Without insurance, all his assets would be lost. Vincent is unsure of the likelihood of an earthquake so we have decided to perform a break-even analysis. He estimate that the insurance would recover 80% of the loss of 40 million dollars' worth of assets. The cost of insurance is $3,000/year. What is the average number of years between earthquakes that would result in break-even?

(Express the answer as a number accurate to within the nearest number of years.)

Question 3: Suppose an asset is valued at $80,000. The exposure factor before implementing the control is 0.7 and the average rate of attack is 2 per year. After implementing the control, the exposure factor is 0.2 and the attack is expected to occur once in every 10 years. If the annualized cost of the control is $1,000/yr, what is the CBA for the threat-control combination?

Question 4: A trader anticipates that there is a 19% chance that a stock could double in value over a year, otherwise it will halve in value. If the trader places $150 on the stock, what is its expected value in a year?

Question 5: Suppose the asset value (AV) is $30,000 and the single loss expectancy (SLE) for a threat is $4,000. What is the exposure factor (EF), expressed as a percentage (that is, a number between 0 and 100, NOT a fraction)?

Question 6: Consider the following key for a transposition cipher:

1 --> 8,

2 --> 6,

3 --> 4,

4 --> 1,

5 --> 7,

6 --> 5,

7 --> 2,

8 --> 3

Using the above key encrypt the following Byte (Please note that the positions are numbered from MSB to LSB from left to right):

8 7 6 5 4 3 2 1

B I R T H D A Y

The answer is case sensitive. Do not put spaces in between letters.