What is considered speculative risk?
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.
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.
What is speculative risk and examples?
Speculative risk refers to a situation with three possible outcomes. Either (1) nothing will happen, or (2) there will be a loss, or (3) there will be a gain or profit. The best example of speculative risk is gambling. When you enter a casino with $100, there are three possible outcomes with this type of risk.
Is there any gain in speculative risk?
In many cases, the higher the speculative risk, the higher the profit or return potential on the investment. A speculative risk has the potential to cause a loss or gain.
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