The Difference Between a Guarantee and an Indemnity Is That

question 79

Multiple Choice

The difference between a guarantee and an indemnity is that

• A)the guarantor has unlimited liability for any debts of the prinicipal debtor
• B)the person who signs the indemnity can be called on before the principal debtor to repay the debt
• C)the person who signs the indemnity has unlimited liability for any debts of the principal debtor
• D)the person who signs the guarantee can be called on before the principal debtor to repay the debt
• E)there is no difference between a guarantee and an indemnity

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Definitions:

Semi-strong Form

A concept in efficient market hypothesis proposing that all publicly available information is fully reflected in stock prices.

Variance

A statistical measure that represents the spread or dispersion of a set of data points from their mean.

Average Squared Difference

A statistical measure used in variance calculations, representing the average of the squared differences from the mean.

Actual Return

The real profit or loss achieved on an investment over a particular time period, often expressed as a percentage.