speculative risk

Why Is Land Speculation Bad?

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Why Is Land Speculation Bad? As with any investment strategy, there are some downsides to land speculation. For one, you likely have to use all cash to purchase the land, given it’s unproductive with no income. Further, if a loan is used, it’s generally a much lower loan-to-value ratio, and interest rates tend to be

What Is Speculative Risk?

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What Is Speculative Risk? Speculative risk is a category of risk that can be taken on voluntarily and will either result in a profit or loss. All speculative risks are undertaken as a result of a conscious choice. What is meant by speculative and pure risk? Both speculative risk and pure risk involve the possibility