What type of risks are considered speculative risks?

Speculative risks are defined as risks that involve the possibility of both loss and gain, often associated with activities that have uncertain outcomes. In the context of the provided choices, risks that are not insurable, such as gambling, exemplify speculative risks because they involve chance and the potential for uncertain financial results.

In the case of gambling, individuals engage in an activity where they risk losing money but also have the potential to win. This dual nature of risk—where there is a possibility of both profit and loss—captures the essence of speculative risk.

In contrast, other types of risks, such as those strictly associated with natural events or guaranteed to happen, typically do not fit the definition of speculative risk. Such risks tend to be classified as pure risks, where there is only a possibility of loss, making them more suitable for insurance coverage. Therefore, the characterization of gambling—or similar risks—as speculative aligns perfectly with the definition of speculative risks.