ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Pure risk refers to risks that are beyond human control and result in a loss or no loss with no possibility of financial gain. Fires, floods and other natural disasters are categorized as pure risk, as are unforeseen incidents, such as acts of terrorism or untimely deaths.

Detailed explanation-2: -Speculative risk refers to price uncertainty and the potential for losses in investments. Assuming speculative risk is usually a choice and not the result of uncontrollable circumstances. Pure risk, in contrast, is the potential for losses where there is no viable opportunity for any gain.

Detailed explanation-3: -Pure risk is a category of risk that cannot be controlled and has two outcomes: complete loss or no loss at all. There are no opportunities for gain or profit when pure risk is involved. Pure risk is generally prevalent in situations such as natural disasters, fires, or death.

Detailed explanation-4: -These are either no loss at all or complete loss. There aren’t any opportunities for profit or gain when pure risk is involved. Pure risk can be broken up into three separate categories. They are property, personal, and liability.