Which of the following is a type of pure risk?

Pure risk refers to situations where there are only the possibilities of loss or no loss; there is no potential for financial gain. This type of risk is contrasted with speculative risk, which involves opportunities for both gains and losses.

Property damage is a quintessential example of pure risk because it represents a situation where the potential outcomes are limited to either suffering a loss due to damage or experiencing no loss at all. In scenarios involving property, the risk is associated with the possibility of a financial setback if damage occurs, but there is no chance of profit or gain from that same situation.

Investment risk, business interruption, and financial speculation involve elements of speculation where profits can be made alongside losses. For instance, investment risk can lead to gains if the investment performs well, while financial speculation entails making investments or bets that can yield profits, presenting no pure risk characteristics. Thus, property damage distinctly illustrates the nature of pure risk.