What type of risk includes the possibility of loss without financial gain, such as loss of property or death?

The correct choice highlights the concept of pure risk, which is associated with situations that present a chance of loss but do not offer any possibility for financial gain. This type of risk is typically related to events that can result in unfortunate outcomes, such as property loss, accidents, or death, where the only outcome is negative—there is no potential for profit.

In contrast, speculative risk involves scenarios that present both the possibility of loss and the potential for gain, such as investing in stocks or starting a business. Dynamic risk refers to risks that arise from changes in the economy or the environment, which can lead to varying outcomes. Systematic risk pertains to broader financial risks that impact an entire market or economy, such as inflation or recession.

Understanding these differences is essential for effective risk management and insurance planning, emphasizing that pure risk is strictly about the potential for loss without the possibility of gain.