Which type of risk is characterized by situations where there is only the possibility of a loss or no loss, with no chance of financial gain?

### Why this is right The material explicitly lists pure risk and speculative risk under the heading “Types of Risk.” The remaining categories may appear in broader risk-management discussions, but they are not identified in this source. ### The concept A risk category is a way of grouping exposures according to their characteristics. In common insurance usage, **pure risk** means that an event can produce a loss or no loss, while **speculative risk** may produce a loss, no change, or a gain. These definitions help distinguish exposures that are often considered for insurance from exposures that include a chance of profit. The source itself is too damaged to confirm its precise definitions, so the safest source-based conclusion is that it names the two categories, not that it provides a readable explanation of them. ### The other options - **B. Physical risk and legal risk**: These can describe types of exposure, but the material does not list them under its readable risk heading. - **C. Static risk and dynamic risk**: These are other possible classifications, but they are not the pair named in the source. - **D. Personal risk and financial risk**: These may describe areas of exposure, but the source instead names pure and speculative risk. ### Terms - **Pure risk**: In common usage, a risk involving possible loss or no loss, without a possible gain. - **Speculative risk**: In common usage, a risk that may result in loss, no change, or gain. ### Remember When asked what this source explicitly names, distinguish the readable terms from other valid classifications.