Explanation/Reference:
The Diffie-Hellman algorithm is used for Key agreement (key distribution) and cannot be used to encrypt and decrypt messages.
Source: WALLHOFF, John, CBK#5 Cryptography (CISSP Study Guide), April 2002 (page 4).
Note: key agreement, is different from key exchange, the functionality used by the other asymmetric algorithms.
References:
AIO, third edition Cryptography (Page 632)
AIO, fourth edition Cryptography (Page 709)

Section: Risk, Response and Recovery
Explanation/Reference:
The exposure factor is a measure of the magnitude of loss or impact on the value of an asset.
The probability is the chance or likelihood, in a finite sample, that an event will occur or that a specific loss value may be attained should the event occur.
A vulnerability is the absence or weakness of a risk-reducing safeguard.
A threat is event, the occurrence of which could have an undesired impact.
Source: ROTHKE, Ben, CISSP CBK Review presentation on domain 3, August 1999.

Explanation/Reference:
The Address Resolution Protocol (ARP) is used to match an IP address to an Ethernet address so the packet can be sent to the appropriate node.
Shon Harris in her book says:
MAC and IP addresses must be properly mapped so they can be correctly resolved. This happens through the Address Resolution Protocol (ARP). When the data link layer receives a frame, the network layer has already attached the destination IP address to it, but the data link layer cannot understand the IP address and thus invokes ARP for help.
ARP broadcasts a frame requesting the MAC address that corresponds with the destination IP address.
Each computer on the subnet receives this broadcast frame, and all but the computer that has the requested IP address ignore it.
The computer that has the destination IP address responds with its MAC address. Now ARP knows what hardware address corresponds with that specific IP address. The data link layer takes the frame, adds the hardware address to it, and passes it on to the physical layer, which enables the frame to hit the wire and go to the destination computer.
ARP maps the hardware address and associated IP address and stores this mapping in its table for a predefined amount of time. This caching is done so that when another frame destined for the same IP address needs to hit the wire, ARP does not need to broadcast its request again. It just looks in its table for this information.
Man-In-The-Middle attack
Because ARP does not require authentication, an attacker could place bogus entries into the ARP cache of a remote host (gratuitous ARP replies) to carry out attacks, such as a man-in-the-middle attacks. This attack is called ARP poisoning.
The following answers were incorrect:
RARP is used to match an Ethernet address to an IP address.
ICMP is a management protocol whose function is to send message between network devices.
Routing tables are used by routers to choose the appropriate interface to route packets.
Reference(s) used for this question:
Harris, Shon (2012-10-25). CISSP All-in-One Exam Guide, 6th Edition, Chapter 6 Telecommunications and Network Security, Pages 580-581 or on the Kindle edition look around Locations 12298-12306. McGraw- Hill. Kindle Edition.
and
Schneiter, Andrew (2013-04-15). Official (ISC)2 Guide to the CISSP CBK , Third Edition:
Telecommunications and Network Security, Page 342.

Explanation/Reference:
If the cost is lower than the estimated loss (C < L), then legal liability may exists if you fail to implement the proper safeguards.
Government laws and regulations require companies to employ reasonable security measures to reduce private harms such as identity theft due to unauthorized access. The U.S. Gramm-Leach-Bliley Act (GLBA) Safeguards Rule and the broader European Directive 95/46/EC, Article 17, both require that companies employ reasonable or
appropriate administrative and technical security measures to protect consumer information.
The GLBA is a U.S. Federal law enacted by U.S. Congress in 1998 to allow consolidation among commercial banks. The GLBA Safeguards Rule is U.S. Federal regulation created in reaction to the GLBA and enforced by the U.S.
Federal Trade Commission (FTC). The Safeguards Rule requires companies to implement a security plan to protect the confidentiality and integrity of consumer personal information and requires the designation of an individual responsible for compliance.
Because these laws and regulations govern consumer personal information, they can lead to new requirements for information systems for which companies are responsible to comply.
The act of compliance includes demonstrating due diligence, which is defined as "reasonable efforts that persons make to satisfy legal requirements or discharge their legal obligations". Reasonableness in software systems includes industries standards and may allow for imperfection. Lawyers representing firms and other organizations, regulators, system administrators and engineers all face considerable challenge in determining what constitutes "reasonable" security measures for several reasons, including:
1. Compliance changes with the emergence of new security vulnerabilities due to innovations in information technology;
2. Compliance requires knowledge of specific security measures, however publicly available best practices typically include general goals and only address broad categories of vulnerability; and
3. Compliance is a best-effort practice, because improving security is costly and companies must prioritize security spending commensurate with risk of non-compliance. In general, the costs of improved security are certain, but the
improvement in security depends on unknown variables and probabilities outside the control of companies.
The following reference(s) were used for this question:
KRUTZ, Ronald L. & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, 2001, John Wiley & Sons, Page 315.
and
http://www.cs.cmu.edu/~breaux/publications/tdbreaux-cose10.pdf

In 1973 Bell and LaPadula created the first mathematical model of a multilevel security system.
The following answers are incorrect:
Diffie and Hellman. This is incorrect because Diffie and Hellman was involved with cryptography. Clark and Wilson. This is incorrect because Bell and LaPadula was the first model. The Clark-Wilson model came later, 1987. Gasser and Lipner. This is incorrect, it is a distractor. Bell and LaPadula was the first model.