Which of the following involves speculative risk? A) boycotts B) hurr

QUESTION

Which of the following involves speculative risk?

A) boycotts
B) hurricanes
C) arson
D) lightning strikes
E) new products

ANSWER

Answer: E
Explanation: E) Speculative risk involves a chance of either gain or loss. This is the kind of risk that a company takes when it introduces a new product, which may make a profit or lose money. Speculative risks are a normal part of doing business.