MANAGEMENT

Detailed explanation-1: -Speculative risks are not insurable. Both speculative risk and pure risk involve the possibility of loss. However, speculative risk also involves the possibility of gain as well-even if there is no loss. In order to understand why, you will need to understand the difference between the two.

Detailed explanation-2: -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-3: -Speculative risk is a category of risk that can be taken on voluntarily and will either result in a profit or loss. All speculative risks are undertaken as a result of a conscious choice.

Detailed explanation-4: -Answer. Explanation: Speculative risk is a category of risk that, when undertaken, results in an uncertain degree of gain or loss. In particular, speculative risk is the possibility that an investment will not appreciate in value.

Detailed explanation-5: -Speculative risk refers to uncertainty about an event under consideration that could produce either a profit or a loss, such as a business venture or a gambling transaction.