Which of the following potential losses is not an example of a pure risk?
A) Loss of a home by fire
B) Theft of a car
C) Loss of $10,000 in the stock market
D) Theft of your wallet containing $100

Question

Quizplus · Accepted Answer

A pure risk is a risk where there is only a possibility of loss or no loss, and no possibility of gain. The loss of a home by fire (A), theft of a car (B), and theft of a wallet containing $100 (D) are all examples of pure risks. However, loss of $10,000 in the stock market (C) is not a pure risk because there is a possibility of gain or loss when investing in the stock market.

Which of the Following Potential Losses Is Not an Example