What type of risk presents the opportunity for both loss and gain?

The type of risk that presents the opportunity for both loss and gain is speculative risk. This type of risk involves situations where there is a possibility of financial loss as well as the potential for gain. Examples of speculative risk include investments in stocks, real estate, or starting a new business, where the outcome can either result in profit or a loss.

In contrast, pure risk involves situations where there is only the possibility of loss and no chance of financial gain, such as the risk of fire damage to property or theft. Insurable risk refers to risks that are suitable for insurance coverage, typically those that are pure risks. Transfer risk is not a standard category in risk management and does not specifically refer to the potential for both loss and gain. Understanding these distinctions is crucial for evaluating different types of risks involved in financial decisions and insurance.