The premature death of an individual is an example of a
A)pure risk.
B)speculative risk.
C)nondiversifiable risk.
D)physical hazard.

Question

Quizplus · Accepted Answer

The premature death of an individual is an example of a pure risk because it involves only the possibility of loss or no loss. It is not a speculative risk because there is no chance of gain or profit. It is also not a nondiversifiable risk because it can be mitigated through diversification of the individual's assets or through insurance. Finally, it is not a physical hazard because it does not involve a physical condition or circumstance that could lead to loss or damage.

The Premature Death of an Individual Is an Example of a