The Following Are a Number of Internet Facts

question 37

Multiple Choice

The following are a number of internet facts. Which one is incorrect?

• A) A URL is an unsecure relay location that should be avoided.
• B) The internet is structured in a complex client-server fashion.
• C) The key protocol of the internet is TCP/IP.
• D) The World Wide Web is only part of the internet.
• E) An internet backbone links various regions and service providers.

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Definitions:

Real Risk-free Rate

The rate of return on a risk-free investment, after adjusting for inflation. It represents the true purchasing power gained from investing.

Real Risk-free Rate

The rate of return on an absolutely risk-free investment, adjusted for inflation, representing the minimum return investors would expect for any investment risk.

Inflation Premium (IP)

The additional amount that investors require on the return of an investment to compensate for the loss of purchasing power due to inflation.

Maturity Risk Premium (MRP)

The Maturity Risk Premium is the additional return investors demand for holding longer-term securities due to increased risk of price fluctuations and uncertainty over a long period.