What distinguishes speculative risk from pure risk?

Speculative risk is characterized by its inherent possibility of gain or profit, which sets it apart from pure risk. While pure risk involves situations that can only result in loss or no loss (for example, the risk of a house burning down), speculative risk encompasses scenarios where there could be either a loss or a gain, such as investing in the stock market or starting a business.

The definition of speculative risk includes the potential for positive outcomes, which introduces an element of opportunity alongside risk. This dual nature is a fundamental aspect of speculative risk, as it allows for financial activities that are aimed at profit generation, rather than merely the avoidance of loss.

The other options do not accurately describe the characteristics of speculative risk. For instance, the idea that speculative risk includes uncertainty without a chance of loss contradicts the nature of speculation. The statement regarding easier management doesn't hold true universally, as managing speculative risks can often be more complex due to their unpredictable nature. Lastly, claiming that speculative risk guarantees returns is misleading since the very concept of speculation involves uncertainty and does not ensure profitability. Thus, the defining feature of speculative risk is its potential for gain, making it inherently different from pure risk.