Which of the following defines pure risk?

Pure risk is defined as a situation where there are only possibilities of loss or no loss, with no chance for any financial gain. It refers specifically to risks that can result in a loss but do not have an upside potential. This includes scenarios such as theft, fire, or natural disasters, where the outcome can only be a loss or no loss at all.

In contrast, options referring to investments or risks with opportunities for profit hint at speculative risks, which involve both the potential for loss and the possibility of gain, and thus do not fit the pure risk definition. The focus on predictable losses highlights that while pure risks can be estimated and managed, the essential characteristic remains the absence of potential profit. Therefore, the correct answer encapsulates the essence of pure risk accurately by highlighting that it only pertains to risks leading to financial loss without the chance for gain.