Question: 1. Explain the difference between Pure Risk and Speculative Risk. 2. Describe a loss exposure that you face personally (be specific). Be sure to describe

1. Explain the difference between Pure Risk and Speculative Risk.

2. Describe a loss exposure that you face personally (be specific). Be sure to describe each of the 3 components of the loss exposure.

3. Provide a descriptive example of each of the following terms:

a. Physical Hazard

b. Moral Hazard

c. Morale (Attitudinal) hazard

4. Suppose that your home is damaged by fire and you are unable to live there until repairs are made.

a. What is the direct loss associated with this situation?

b. What is the indirect loss associated with this situation?

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