Question

Which of the following is a situation where there is a possibility of either a loss or a gain?

- A) Speculative risk
- B) Pure risk
- C) Hazardous risk
- D) Moral risk

Answer 1

Speculative risk involves taking a chance on an uncertain outcome with the possibility of a significant gain or loss.

Step-by-step explanation:

A situation where there is a possibility of either a loss or a gain is known as speculative risk. Speculative risk involves taking a chance on an uncertain outcome with the possibility of a significant gain or loss. This type of risk is often associated with investments, such as investing in the stock market or starting a new business.