2. How did the XYZ Software Company arrive at the values shown in the table that is included in Exercise 1? For each row in the table, describe the process of determining the cost per incident and the frequency of occurrence.

3. How could we determine EF if there is no percentage given? Which method is easier for determining the SLE: a percentage of value lost or cost per incident?

4. Assume a year has passed and XYZ has improved its security. Using the following table, calculate the SLE, ARO, and ALE for each threat category listed.

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