Question

Hich type of risk is most likely to be insurable?

a) Pure risk
b) Speculative risk
c) Equity risk
d) Investment risk

Answer 1

Insurable risks are typically pure risks, which are events that only have the potential for loss. Speculative risks, which involve potential for both gain and loss, are not insurable.

Step-by-step explanation:

Insurable risks are typically pure risks, which are risks that only have the potential for loss or no loss. Pure risks are events that are accidental and beyond the control of the insured. These risks can be insured against because they involve unforeseen events such as accidents, natural disasters, or illness. Speculative risks, on the other hand, involve potential for both gain and loss and are not insurable.