How is "speculative risk" characterized?

Speculative risk is characterized by the possibility of both loss and gain, which makes it distinct from other types of risk. This type of risk is often associated with investments or business ventures where the outcome is uncertain and can lead to either a positive or negative financial result. For instance, investing in stocks involves speculative risk because the stock’s value may increase, providing a gain, or decrease, resulting in a loss. The dual possibility of outcomes is a key feature, highlighting the dual-edge nature of speculation in finance.

In contrast, the other options do not align with the defining characteristics of speculative risk. A guaranteed loss signifies pure risk, where the outcome is certain and involves only the potential for loss. Insurable risk is also related to pure risk, as it must be quantifiable and predictable. Lastly, a risk with no financial implications does not reflect any aspect of speculative risk, as such risks are typically considered inconsequential in financial terms. Therefore, the identification of speculative risk is solely defined by the chance of both loss and gain, affirming option B as the correct choice.