What is the difference between pure risk and speculative risk? Provide an example of each of these
Question:
What is the difference between pure risk and speculative risk? Provide an example of each of these types of risk.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
Pure risks are situations with two possible outcomes loss or no ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial Institutions, Markets and Money
ISBN: 978-1119330363
12th edition
Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias
Question Posted:
Students also viewed these Business questions
-
What is the difference between pure arbitrage and risk arbitrage? If an investor observes the price of a stock trading in one exchange to be different from its price in another exchange, what form of...
-
a. Explain the difference between pure risk and speculative risk. b. How does diversifiable risk differ from nondiversifiable risk?
-
What is the difference between avoiding a risk and accepting a risk?
-
Why is it fundamentally important that costs are correctly classified as either a product cost or a period cost? What is the financial outcome if costs are misclassified?
-
TR Company conducts business exclusively in State V, which levies a 5 percent sales and use tax on goods purchased or consumed in-state. This year, TR bought equipment in State B. The cost of the...
-
Why does the channel manager need a familiar-ity with some of the behavioral processes occurring in the channel?
-
The probabilities that a quality control team will visit \(0,1,2,3\), or 4 production sites on a single day are 0.15,0.22,0.35,0.21, and 0.07. (a) Simulate the inspection team's visits on 30 days....
-
Below is a variable costing income statement for Wilner Glass Company, a maker of bottles for the beverage industry. For the coming year, the company is considering hiring two additional sales...
-
The following formula for k(t), describes the rate of change as the function of time (t):k(f) = 4e-1. What is the average rate of change between t 2 seconds and t = 5 seconds?
-
Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Demand (D) = 20,000 units/year Ordering cost (S) $40/order Holding cost...
-
Throughout this chapter, the role of insurance companies and pension funds as financial intermediaries was stressed. Discuss the financial intermediation process as it applies to insurance companies...
-
According to the law of large numbers, as the number of insureds increases, risk is reduced. However, as an insurance company writes more policies, it exposes itself to the potential for greater...
-
Financial information for The Buckle is presented in Appendix B at the end of the book. Required: 1. In the summary of significant accounting policies, what is The Buckle's procedure in accounting...
-
Under certain circumstances, an oral contract for a sale of goods priced at $500 or more can be enforceable despite the absence of a writing. (True/False)
-
What does tender of delivery require?
-
Promises of fact made during the bargaining process are express warranties. (True/False)
-
Sam obtains his Aunt Claires tablet computer through fraud. He then sells the tablet to Jill. If Jill does not know that the tablet was acquired by fraud, what title does she take? a. Jill takes...
-
Kenneth Newman attempted to recover allegedly unpaid overtime wages. He claimed that he was implicitly an employee of Plains All American Pipeline, L.P. Plains classified him as an independent...
-
Reconsider Prob. 14112E. The office worker who set up the siphoning system purchased a 12-ft-long reel of the plastic tube and wanted to use the whole thing to avoid cutting it in pieces, thinking...
-
-x/2 x/4 If A = -x/2 and A-1 =6 then x equals
-
Differentiate receipts and disbursements.
-
Isolate the risk and advantages of an aggressive working capital policy that emphasizes short-term over long-term debt financing.
-
How have money market rates changes since the beginning of the semester? Consider the existing economic conditions. Do you think money market rates will increase or decrease during the semester?...
-
Image transcription text Introduction: The Smart Parking Management System (SPMS) project aimed to develop an efficient, automated solution for managing parking spaces in urban areas using Arduino...
-
A. Can we use human capital theory to explain "Age-Discrimination"? If so, how? B. Why do some firms prefer to hire younger workers, especially for entry level positions? C. Why do some firms...
-
Image transcription text Question 6 Not yet answered Marked out of 1.00 '1" Flag question During a mountain?biking tripr Bill and Barry are discussing the merits of having the springs and shocks used...
Study smarter with the SolutionInn App