MANAGEMENT

Detailed explanation-1: -Pure risk, in contrast, is the potential for losses where there is no viable opportunity for any gain. Sports betting, investing in stocks, and buying junk bonds are some examples of activities that involve speculative risk.

Detailed explanation-2: -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-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.

Detailed explanation-4: -In pure risk, there is no chance of any gain. In a speculative risk, there is a chance of a potential loss or gain.

Detailed explanation-5: -Market/systemic risk The day-to-day fluctuation in a stock’s price (also known as volatility). Market risk applies mainly to stocks and options.