The primary difference between a speculative risk and a pure risk is that there is a chance for ____ in a speculative risk but a chance for ____ in a pure risk.
A)gain and loss; only gain
B)gain and loss; only loss
C)only gain; gain and loss
D)only loss; gain and loss

Question

Quizplus · Accepted Answer

A speculative risk involves the possibility of both gain and loss, while a pure risk involves only the chance of loss. Therefore, only option B accurately reflects the difference between the two types of risk.

The Primary Difference Between a Speculative Risk and a Pure