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Question: Which of the following is NOT an example of a pure risk?

Options:

  1.  Potential loss of a home by hurricane
  2.  Potential theft of a motorcycle
  3.  Potential loss of $5,000 in the stock market
  4.  Potential loss of your wallet containing a stock certificate worth $5,000
  5.  Potential loss of your laptop computer from the library while studying for your risk management and insurance exam

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3. Potential loss of $5,000 in the stock market

"Potential loss of $5,000 in the stock market" is NOT an example of a pure risk.


More information:

Pure risk is a type of risk which can't be controlled and results in either complete loss or no loss at all.

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