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Why distinguish pure risk and speculative risk? Group of answer choices A) Pure risk involves wealth losses to society but speculative risk often involves wealth
Why distinguish pure risk and speculative risk?
Group of answer choices
A) Pure risk involves wealth losses to society but speculative risk often involves wealth redistributions in society.
B) Traditionally speculative risk (e.g. price risk) is managed by insurance.
C) Speculative risk involves events that are individual- or firm-specific.
D) The law of large numbers can be applied to speculative risk in most cases.
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