Which of the following is typically NOT considered a speculative risk?

Speculative risks are those risks where there is a possibility of either gain or loss. In contrast, pure risks are associated with situations that only create potential for loss, without any opportunity for gain.

In the context of the options provided, investing in stocks, playing the lottery, and investing in a defined benefit plan are all examples of speculative risks because they involve the potential for both profit and loss. For instance, investing in stocks can yield profits if the stock value increases, while there is also a risk of losing money if the stock value declines. Similarly, playing the lottery poses a chance to win money, but also entails the risk of losing the entry fee. A defined benefit plan may feel more secure, yet it also involves investment risks for the asset growth that impinge on the future payouts.

Reckless driving, on the other hand, is considered a pure risk because it is primarily associated with negative outcomes, such as accidents and injuries, without any potential for financial gain. The act of reckless driving does not offer the prospect of an increased reward; instead, it simply heightens the risk of incurring losses through property damage, medical expenses, or legal liabilities.

Thus, reckless driving stands out as the situation that does not embody speculative