Which of the following statements about speculative risks is true?
A)They are almost always insurable by private insurers.
B)They are more easily predictable than pure risks.
C)They may benefit society even though a loss occurs.
D)They involve only a chance of loss.

Question

Quizplus · Accepted Answer

Speculative risks have the potential for loss or gain, and while a loss may occur, it may also benefit society or result in a profit for the individual taking the risk. This makes them different from pure risks, which only have the potential for loss. They are also not typically insurable by private insurers because of the uncertainty involved in the potential outcomes. Therefore, option A is incorrect. Speculative risks are typically more difficult to predict than pure risks, so option B is also incorrect.

Which of the Following Statements About Speculative Risks Is True