ENTREPRENEURSHIP

Detailed explanation-1: -Investing in the stock market is an example of a speculative risk. One can only speculate on whether the investment will produce a profit or a loss. Insuring an automobile is an example of pure risk. If the insured auto is involved in an auto accident, there is most definitely going to be some sort of damage (loss).

Detailed explanation-2: -Key Takeaways Sports betting, investing in stocks, and buying junk bonds are some examples of activities that involve speculative risk.

Detailed explanation-3: -These risks are generally insurable. Speculative risk has a chance of loss, profit, or a possibility that nothing happens. Gambling and investments are the most typical examples of speculative risk. The traditional insurance market does not consider speculative risks to be insurable.

Detailed explanation-4: -Examples of speculative investments include penny stocks, crypto, precious metals, and forex. Many speculative investments fall into the category of non-productive assets, and they’re usually susceptible to volatility, giving investors the opportunity to profit from short-term price movements.