Question: 1. Distinguish between pure risk and speculative risk. 2. Explain the distinctions between risk and odds. 3. Distinguish among the five common risk exposures that

1. Distinguish between pure risk and speculative risk.
2. Explain the distinctions between risk and odds.
3. Distinguish among the five common risk exposures that most people face.
4. Describe the five steps of risk management.
5. When considering likelihood of loss and severity of loss, explain which one of these two concepts is more important when deciding whether to buy insurance and why.

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