Which of the following is not an example of a speculative risk?
A) Purchase of an insurance policy
B) Investment in common stocks
C) Operating a business for profit
D) Investment in banana futures

Question

Quizplus · Accepted Answer

Purchase of an insurance policy is not an example of a speculative risk as it involves transferring the risk of loss to the insurer. Speculative risks involve the possibility of gain or loss and are taken by individuals who are willing to take risks in hopes of making a profit. Options B, C, and D are examples of speculative risks.

Which of the Following Is Not an Example of a Speculative