Opportunities and Advancements in the Technological Environment During the Past

question 194

Multiple Choice

Opportunities and advancements in the technological environment during the past 20 years have opened the doors for a number of products that enhance the lives of consumers. Identity theft and other forms of cybercrime are also by-products of these technological advancements. Which of the following statements describes a form of identity theft?

• A) Smartphone apps that permit the consumer to price compare by scanning the barcode of a product, such as a cell phone.
• B) Hacking into a business's database to obtain customer credit card numbers, and then selling those numbers to others for use.
• C) GPS technology that permits you to find the exact location of a person, by entering that person's phone number into your application.
• D) The application of cookies to a consumer's computer system that identify his/her purchasing patterns.

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, unavoidable through diversification.

Security Market Line

A line that represents the relationship between the risk of an investment and its expected return, based on the capital asset pricing model (CAPM).

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss, often represented by government bonds.

Unsystematic Risk

The type of risk that is specific to a company or industry, stemming from factors like management decisions or regulatory changes, and can be mitigated through diversification.