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In Business / College | 2025-07-08

Which one of the following statements pertaining to risk is NOT correct?
A) Uncertainty regarding financial loss is the definition of risk; therefore, it is characteristic of both pure and speculative risks.
B) A stock market venture is an example of a pure risk.
C) Pure risk involves only the chance of loss; there is never a possibility of gain or profit.
D) Only pure risks are insurable.

Asked by juniorroberto10

Answer (2)

The incorrect statement regarding risk is OB, which misclassifies stock market ventures as pure risks. In reality, stock market ventures illustrate speculative risks. Pure risks only involve potential losses without the opportunity for profit. ;

Answered by GinnyAnswer | 2025-07-08

The incorrect statement about risk is B, which mistakenly categorizes stock market ventures as pure risks. In reality, stock market ventures are examples of speculative risks, involving potential losses as well as gains. Statements A, C, and D are correct regarding risk classifications.
;

Answered by Anonymous | 2025-07-18

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