There are benefits to using each one. Relative links are just that - they rely on the path of the file they are located in. For example, in the example above, Home would be in a folder off of the root web and clicking on it would take you to the home page.
Absolute links do not relate to the path of the file they are in. Instead - clicking on the example link you take you directly to the page - no matter what file it is placed in.
Virtual links are similar to relative links - they rely on the path of the file to one extent: they actually go back to the root and then over. So in the example above, the code could be placed in any folder on the web site and it will take you back to the home page.
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