Wagering on a sporting event is known as what type of risk?

Wagering on a sporting event is categorized as speculative risk because it involves a situation where there is a chance of both gain and loss. In the context of gambling, individuals place bets with the possibility of winning money, but they also face the risk of losing the amount they wagered.

Speculative risk is characterized by outcomes that can lead to profits or losses, distinguishing it from pure risk, which only involves the potential for loss with no opportunity for gain. Pure risk scenarios, such as natural disasters or accidents, do not offer the possibility of profit; they are situations that would result solely in loss.

Dynamic risk, on the other hand, refers to risks that change over time due to societal developments, while static risk involves risks that remain constant regardless of time and circumstances. Wagering does not fit neatly into these categories since it directly involves the potential for financial gain or loss based on uncertain outcomes, solidifying its classification as speculative risk.