Which type of risk involves a possibility of either loss or no loss?

The correct answer is pure risk, as this type of risk is characterized by situations that can result in either a loss or no loss at all, but no possibility of gaining a profit. Pure risk includes instances like natural disasters, accidents, or illnesses—all of which can lead to financial losses, but do not carry the potential for financial gain.

In contrast, speculative risk involves scenarios where there is a chance of either loss or gain. This type of risk is associated with investments or entrepreneurial ventures where outcomes could result in profit or loss. Investment risk and business risk, both of which involve potential for both gain and loss, fall within the category of speculative risk. Therefore, only pure risk meets the criterion of having only the possibility of loss or no loss, making it the correct answer.