Classifying risk appropriately can help in managing risk. Which one of the following statements is correct with respect to the classifications of risk? Select one:

Risk classifications are mutually exclusive, and only one can be applied to any given risk.

Usually, pure risks and speculative risks can be managed using the same techniques.

A pure risk is a chance of loss or no loss, but no chance of gain.

Insurance deals primarily with speculative risk, rather than with pure risk.