Provide an example of two pure risks and two speculative risks. Select one of your examples...
Provide an example of two pure risks and two speculative risks. Select one of your examples of pure risk and one speculative risk and provide a recommended risk mitigation technique or idea?
Homework Answers
Answer- Physical harm to the property from fire, flood
or other natural events, joblessness, war is an example of
pure risk.
Betting, putting money into the stock market is an
example of speculative risk.
The risk mitigation method for physical harm to the property from
fire, flood or other natural events is to transfer it to an
insurance agency by buying an insurance policy.
The risk mitigation method for putting money into the stock market
risk is diversification and hedging. In the event
that you put all your investment in one, stock or one instrument,
you're setting yourself up for a major misfortune. So make sure to
enhance your ventures—across both industry segments.
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Provide an example of two pure risks and two speculative risks.
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