Answer:
A) The risk/return Tradeoff is applicable to speculative risks.
Explanation:
Speculative risk always has a positive payoff and also a negative payoff , so option (b) is incorrect.
Speculative risk is a source of great concern for risk managers, so option (c)is incorrect.
Speculative risk is a category of risk that can be taken on voluntarily and will either result in a profit or loss , so option d is wrong
Pure risk, also called absolute risk, is a category of threat that is beyond human control and has only one possible outcome if it occurs: loss. Pure risk includes such incidents as natural disasters, fire or untimely death. so option (e) also incorrect
Answer:
A) The risk/return Tradeoff is applicable to speculative risks.
Explanation:
