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Question
which type of risk is most likely to be insurable? a. pure risk b. speculative risk c. equity risk d. investment risk
Brief Explanations
Pure risk involves only the possibility of loss or no loss (no potential for gain), which fits the criteria for insurability as insurers can quantify and pool these losses. Speculative, equity, and investment risks all have potential for gain, making them uninsurable as they involve voluntary risk-taking for profit.
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A. Pure risk