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4-Define "Speculative Risk" and provide an example
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27 votes
27 votes
4-Define "Speculative
Risk" and provide an
example

User Chehrlic
by
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1 Answer

27 votes
27 votes

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 Justinzane
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