Which of the following is a pure risk?
A. Ken buys a collector car as an investment.
B. A fundraising event that includes a poker game.
C. Joan's fur coat is stored at a storage facility. Correct
D. Anne purchases several shares of stock in a computer company.
Rationale: Pure risk involves situations that can only result in loss or no loss, without the possibility of gain. Storing Joan's fur coat at a storage facility represents pure risk; if the coat is damaged or stolen, there is a loss, but no opportunity for profit.
Option A, Ken's collector car investment, involves speculative risk, as the value of the car could appreciate. Option B, the fundraising event with a poker game, also entails speculative risk, as it could yield financial gain or loss based on the game's outcome. Option D, purchasing stock, is similarly speculative, with potential for both profit and loss based on market performance.
