Exercise 1: Security Groups vs. Network ACLs — Possible Solution ==================================================================== What each applies to: A SECURITY GROUP applies to an individual instance or resource -- per the chapter, it's attached directly to the specific thing being protected. A NETWORK ACL applies to an entire SUBNET -- every resource within that subnet is subject to the same NACL rules, regardless of which individual instance it is. Stateful vs. stateless: Security groups are STATEFUL. Network ACLs are STATELESS. Why "return traffic is automatically allowed" is true for one but not the other: A stateful firewall (the security group) tracks the CONNECTION itself, not just individual packets in isolation. If an inbound rule permits a request in, the security group automatically recognizes the corresponding RESPONSE traffic going back out as part of that same, already-permitted connection -- no separate outbound rule is needed for the reply. A stateless firewall (the NACL) has no concept of an ongoing connection at all -- it evaluates every single packet independently against its rule list, in both directions. This means an inbound request being allowed in says NOTHING about whether the corresponding OUTBOUND response packet will also be allowed -- that has to be permitted by a SEPARATE, explicit outbound rule, or the response never makes it back out even though the original request got in. WHY THIS WORKS AS AN ANSWER ------------------------------ This directly explains the mechanism behind the chapter's own comparison table rather than just restating "stateful vs. stateless" as labels -- the practical consequence (does a reply need its own rule, or not) is exactly why the chapter's warn-box flags checking only one of the two as a common, real mistake: a NACL missing an outbound rule can silently break a connection that the security group alone would have allowed just fine.