Which term best describes the consequence associated with a speculative risk?

Speculative risk is characterized by the possibility of multiple outcomes, which is what makes it distinct from other types of risks, like pure risk. In the case of speculative risk, the potential for loss exists, but there’s also the chance for gain, which introduces uncertainty and variety in the outcomes. For instance, investing in stocks is a speculative risk because the investor could either lose money or gain a profit, depending on market fluctuations.

In contrast, the other terms do not accurately capture the nature of speculative risk. A guaranteed loss implies there is certainty in the outcome, which contradicts the concept of speculative risk. Similarly, a non-avoidable loss suggests that the outcome is inevitable, which again does not apply, as speculative risks leave room for both losses and gains. A fixed financial outcome implies there is a predetermined result, which is contrary to the unpredictable nature of speculative risks, where the outcome can vary significantly. Therefore, the concept of having a chance of multiple outcomes aligns perfectly with the definition of speculative risk.