What is speculative risk?

• Loss of money or decrease in value
• A formula that measures profit and loss
• Gain or increase in money and assets
• A category of risk that results in an uncertain degree of gain or loss

1 answer

The last option, "A category of risk that results in an uncertain degree of gain or loss," is the correct definition of speculative risk. Speculative risk refers to a type of risk where there is a possibility for both gain and loss, but the outcome is uncertain. It typically involves activities such as gambling, investing in stocks, or starting a new business venture.