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2 September, 19:35

What is the difference between pure and speculative risk?

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  1. 2 September, 22:20
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    Both involve the possibility of loss.

    Speculative risks involve the possibility of losses and gains, such as investing in the stock market.

    Pure risk only involves the possibility of loss, such as insuring a car. There is a possibility that nothing will happen (no gain/no loss), but there is also a possibility of loss from accidents etc. Their is no possibility of gain.
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