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Questions and Answers
What is the definition of speculative risk?
What is the definition of speculative risk?
- The potential for losses where there is no viable opportunity for any gain
- The possibility of a loss that might directly affect an individual, such as injury or death
- The possibility of a loss that might affect a piece of property, such as a home or covered contents
- Price uncertainty and the potential for losses in investments (correct)
What are the outcomes of speculative risk?
What are the outcomes of speculative risk?
- A profit or loss
- Nothing, a loss, or a gain (correct)
- A loss or a gain
- Nothing or a loss
What is the most important type of risk for homeowners insurance purposes?
What is the most important type of risk for homeowners insurance purposes?
- Property risk (correct)
- Personal risk
- Speculative risk
- Pure risk
What is the definition of pure risk?
What is the definition of pure risk?
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Pure risk can result in a profit or loss.
Pure risk can result in a profit or loss.
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Personal risk can affect an individual directly, such as injury or death.
Personal risk can affect an individual directly, such as injury or death.
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Speculative risk is usually beyond human control.
Speculative risk is usually beyond human control.
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Property risk only refers to the loss that might affect a piece of property, such as a home or covered contents.
Property risk only refers to the loss that might affect a piece of property, such as a home or covered contents.
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