Which of the following statements defines speculative risk?

A. It is the uncertainty that a voluntarily undertaken risk will result in a loss.
B. It is the refusal to undertake an activity when there is a possibility of incurring heavy losses.
C. It is the possibility of a loss when the possible extent of the loss is unknown.
D. It is the uncertainty that some unpredictable event will result in a loss.


Answer: A

Business

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