Which of the following is an example of pure risk?

Pure risk refers to situations where there is a chance of loss or no loss, but no opportunity for gain. This type of risk is typically associated with events that can lead to a loss but do not provide any potential for profit.

In the context of the provided choices, property loss due to fire is a clear example of pure risk. The risk associated with a fire occurring in a property is solely the threat of damage or complete loss of that property. If a fire happens, the owner bears the risk, and the only outcomes are either experiencing the loss or avoiding it; thus, there is no financial gain involved.

On the other hand, investing in stocks, scuba diving, and engaging in gambling all involve speculative risks. Each of these activities has the potential for profit, meaning that the risk encompasses both the possibility of loss and the possibility of gain. In stock investments, while there is a risk of losing money, there is simultaneously the opportunity for higher financial returns. Scuba diving carries risks, but it can also lead to enjoyment and adventure, which are not merely about avoiding loss. Similarly, gambling involves the chance to win money, despite the inherent risks involved.

Therefore, the identification of property loss due to fire as an example of pure risk