Virtual Private Networks

question 14

Multiple Choice

Virtual private networks:

• A) use wireless communication to build a private internet.
• B) link all points on the internet.
• C) link individual consumers to their ISP.
• D) provide streaming video presentations across the web.
• E) allow information to be passed securely between two points.

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Definitions:

Security Mispricing

The phenomenon when a security (stock, bond, etc.) is priced above or below its intrinsic value.

Risk-Free

Pertaining to an investment with guaranteed returns and negligible risk of financial loss.

Economic Profits

Profits or losses calculated by considering both explicit costs, such as direct expenses, and implicit costs, like opportunity costs.

Arbitrage Opportunity

The opportunity to buy an asset at a low price in one market and sell it for a higher price in another, exploiting price discrepancies.