Which of the Following Is True of European Union Data

question 71

Multiple Choice

Which of the following is true of European Union Data Protection Directive?

• A)It strengthens computer and network security within the European federal government and affiliated parties (such as government contractors)by mandating yearly audits.
• B)It protects the privacy of European Union citizens' personal information by placing limitations on sending such data outside of the European Union to areas that are deemed to have less than adequate standards for data security.
• C)It identifies European taxpayers who hold financial assets in non-European financial institutions and offshore accounts so that they cannot avoid their tax obligations.
• D)It protects against identity theft by imposing disclosure requirements for businesses and government agencies that experience security breaches that might put the personal information of European residents at risk.

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Definitions:

Beta

A measurement of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Capital Market Line

A theoretical line representing the risk versus return of the market of all investable assets, assuming risk-free borrowing and lending rates.

Security Market Line

A representation of the capital asset pricing model which shows the relationship between risk (as measured by beta) and expected return of investments.

Expected Return

The anticipated profit or loss an investment is predicted to generate, acknowledging the potential for volatility and risk.