What is speculative risk example?
Gambling and investing in the stock market are two examples of speculative risks. Each offers a chance to make money, lose money or walk away even. Again, do not equate gambling and investing on any other level than as both being a speculative risk.
What is not a speculative risk?
In contrast to speculative risk, pure risk involves situations where the only outcome is loss. Generally, these sorts of risks are not voluntarily taken on and, instead, are often out of the control of the investor. Pure risk is most commonly used in the assessment of insurance needs.
What are speculative risks?
Speculative risk is a category of risk that can be taken on voluntarily and will either result in a profit or loss. All speculative risks are undertaken as a result of a conscious choice.
Which of the following would be a speculative risk?
A speculative risk is one in which there is a chance for either loss or gain. Example: Gambling, Casino's, Lottery, etc.
Speculative risk is action or inaction that has potential for both gain and loss. This can be contrasted with pure risk that only has potential for loss. Pure risk is the type of risk that is commonly insured such as the risk of disease, disaster, fire and accidents. Speculative risk is risk that is taken on purpose in order to try to achieve gains. The following are illustrative examples of speculative risk.
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- which of the following is not an example of speculative risk quizlet
- what is an example of speculative risk