____ risk exists in situations that offer potential for gain as well as for loss.
A)Systematic
B)Pure
C)Market
D)Speculative

Question

Quizplus · Accepted Answer

Speculative risk refers to situations where the potential for gain as well as loss exists. This type of risk is typically associated with investment and business activities and is taken on voluntarily in the hope of achieving a positive outcome. Examples of speculative risks include investing in stocks, starting a new business venture, or launching a new product line.

____ Risk Exists in Situations That Offer Potential for Gain