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4-Define "Speculative
Risk" and provide an
example

User Antinome
by
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1 Answer

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Speculative Risk Definition:

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.

Example:

→ Gambling.

Gambling is a type of speculative risk, and the gambler engages in this activity expecting to finish with more money than she/he started with.

User Ossama
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