which of the following is a speculative risk and not pure risk? -Owning a car -Flying...

which of the following is a speculative risk and not pure risk?

-Owning a car

-Flying in an airplane

-Buying a business

-Buying a home

Solutions

Expert Solution

Pure risk is the one which has only loss so it is insurable while speculative risk is where we can have gain as well so it is not insurable

so it is option C because in business there can be possible gain and loss but in other options only loss

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

( a)Outlinethe principal differences between speculative risk and pure risk . ( b)Explain which of the...

( a)Outlinethe principal differences between speculative risk and pure risk . ( b)Explain which of the above risk is more commonly associated with insurance policies and provide examples of the insured risks

Which of the following is a risk when owning bonds? Select one: a. all the answers...

Which of the following is a risk when owning bonds? Select one: a. all the answers are correct b. b. price risk c. c. reinvestment risk d. a. default risk e. answers a. and b. only are correct

Which of the following scenarios is consistent with the speculative motive for the demand for money?...

Which of the following scenarios is consistent with the speculative motive for the demand for money? Group of answer choices Afraid of losing his job, Jacob decides to start saving money. John decides to keep money in his checking account rather than a savings account because the interest rate is so low. Mei sets aside a portion of her income each month into a health savings account because she believes that she may need expensive surgery in the future. Mary...

Describe two types of pure risk for which the technique of risk pooling can be used...

Describe two types of pure risk for which the technique of risk pooling can be used to reduce risk effectively, as well as two types of pure risk in which the technique cannot be used effectively. In your answer, briefly describe the characteristics of the pure risks that make them well (or poorly) suited for the risk reduction through pooling. POST ON CHEGG ALREADY IS INCORRECT***

The monthly cost of owning a car depends on the number of kilometers it is driver....

The monthly cost of owning a car depends on the number of kilometers it is driver. Taylor found that in May it cost her $500 to drive 800 km and it June it cost her $650 to drive 1400 km. Express the monthly Cost C as a function of the distance driven d, assuming that a linear function is a suitable model. Use this function to predict the cost of driving 2000 km per month. Find the derivative of the...

US Inc. has decided to expand its operations to owning and operating car washes. The following...

US Inc. has decided to expand its operations to owning and operating car washes. The following is an excerpt from the conversation between the chief executive officer, John Porter and the vice president of finance, Mc.Call : John : Mc.Call, have you given any thought to how we're going to manage the acquisition of Swiffer Car Wash? Mc.Call: Well, the two basic options, as I see it, are to issue either preferred stock or bonds. The equity market is a...

Bolster Inc. has decided to expand its operations to owning and operating car washes. The following...

Bolster Inc. has decided to expand its operations to owning and operating car washes. The following is an excerpt from the conversation between the chief executive officer, Mike O'Brian, and the vice president of finance, John Ibison: Mike: John, have you given any thought to how we're going to manage the acquisition of Swiffer Car Wash? John: Well, the two basic options, as I see it, are to issue either preferred stock or bonds. The equity market is a little...

RMI 3.2 Describe two types of pure risk for which the technique of risk pooling can...

RMI 3.2 Describe two types of pure risk for which the technique of risk pooling can be used to reduce risk. In you answer, describe the characteristics of pure risks that make them well or poorly suited for risk reduction through pooling.

Which of the following is allowable for a CPA? Group of answer choices: a. Owning more...

Which of the following is allowable for a CPA? Group of answer choices: a. Owning more than 5% of the outstanding shares of client stock in a retirement account. b. A credit card from a banking client with a balance below $10,000. c. An uncollateralized loan from a client. d. The audit engagement partner serves on the client's audit committee.

Diversification is a useful technique for handling speculative risk, but it cannot be used to handle...

Diversification is a useful technique for handling speculative risk, but it cannot be used to handle pure risk effectively and From the viewpoint of a proponent of ERM, explain why the traditional 'silo' approach to corporate risk management is flawed.

Subjects