Which of the following is not an example of speculative risk quizlet

Avis 5,0 (3) Which of the following is not an example of a speculative risk? A) Purchase of an insurance policy. B) Investment in common stocks. C) Operating a business for ...

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 examples of speculative risks?

A speculative risk has three possible outcomes: (1) nothing, (2) a loss or (3) a gain. Accident and illness are pure risks. Examples of speculative risks are gambling and investing.

What is speculative risk quizlet?

Define Speculative Risk. Risk that results in an uncertain degree of gain or loss. All speculative risks are made as conscious choices and are not just a result of uncontrollable circumstances. -Loss -No loss -GAIN.

Is tornado an example of speculative risk or pure risk?

Types of Pure Risk\n\n Property risks involve property damaged due to uncontrollable forces such as fire, lightning, hurricanes, tornados, or hail.